Th u rs d ay 2 7 , N ove m b er 2014
News &
Report Analysis
Currency Market
Precious Metal
Base Metal
Energy Market
 India's steel output grow 24% in 5 years to
81.69 MT
 Steelmakers to provide seed capital for
R&D in the industry
 NMDC may slash iron ore prices in Dec
 High-level panel clears mining project of
Western Coalfields
 KIOCL allotted mine in Karnataka
2
Thursday 27, November 2014
Daily
MMR Landed Prices
London Metal Exchange : Wednesday 26, November 2014
Pr. Sell
(1)
Morning Session
Buy
Sell * (2)
Afternoon Session
Buy
Sell
Kerb
Change
(2) - (1)
Value
Stk(tns)
change
$/ton
Rs/ton
Copper Grade A
Spot
6696.00
6648.00
6649.00
NA
NA
6639.00
-47.0
1,62,125
MMR LP
4,44,631
3-mth
6654.00
6589.50
6590.00
NA
NA
6572.00
-64.0
275
14-D MA
4,48,649
PP (HCL)
4,51,551
Average
10-days - 6715.60
20-days - 6725.30
30-days - 6725.50
Tin High Grade
Spot
20210.00
20350.00
20375.00
NA
NA
20404.00
165.0
12,010
--
--
3-mth
20275.00
20300.00
20325.00
NA
NA
20350.00
50.0
295
--
--
--
--
Average
10-days - 19983.50
20-days - 19944.30
30-days - 19812.80
Lead
Spot
2061.00
2044.00
2046.00
NA
NA
2058.00
-15.0
2,17,925
MMR LP
1,41,570
3-mth
2066.00
2051.00
2051.50
NA
NA
2062.00
-14.5
950
14-D MA
1,40,706
PP (HZL)
1,49,400
Average
10-days - 2034.30
20-days - 2020.10
30-days - 2014.90
Zinc Special High Grade
Spot
2287.50
2271.50
2272.50
NA
NA
2259.00
-15.0
6,66,350
MMR LP
1,61,576
3-mth
2293.50
2271.00
2272.00
NA
NA
2268.00
-21.5
-7100
14-D MA
1,60,824
PP (HZL)
1,67,100
Average
10-days - 2262.80
20-days - 2265.50
30-days - 2255.30
Aluminium
Spot
2084.00
2098.50
2099.00
NA
NA
2054.00
15.0
43,42,425
MMR LP
1,61,347
3-mth
2059.00
2065.00
2065.50
NA
NA
2064.00
6.5
-20525
14-D MA
1,58,120
PP (Nalco)
1,66,900
Average
10-days - 2051.30
20-days - 2049
30-days - 2019.70
Aluminium Alloy
Spot
2035.00
2030.00
2040.00
NA
NA
2044.00
5.0
26,760
3-mth
2055.00
2040.00
2050.00
NA
NA
2052.00
-5.0
0
Average
10-days - 2026.50
20-days - 2040.80
30-days - 2056.80
Nickel
Spot
16455.00
16225.00
16230.00
NA
NA
16275.00
-225.0
3,99,996
--
--
3-mth
16535.00
16300.00
16310.00
NA
NA
16322.00
-225.0
2760
--
--
-Copper
Aluminium
-01-Nov
01-Nov
Zinc
Lead
20-Nov
20-Nov
Average
10-days - 15978.50
20-days - 15642.50
30-days - 15489.20
Note: 1. MMR LP = MMR Landed Prices, excluding excise duty. 2. PP = Producer Prices ex-smelter, excl. excise
Minor Metals ($/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: 22/11/2014 (Incl. Excise duty)
Sponge Iron
Pig Iron
Ferro Alloys :
Mandi
28,600 HMS
31,300 CRP(LSLP)
Mumbai Mkt rates in kgs :
Mumbai
Kolkata
29,800
28,900
32,000
Ferro Moly 1400
Indicative Domestic Market Rates (Rs./kg)
Mumbai
26-Nov
Comex Copper (cents/lb)
Prev
Delhi
26-Nov
Prev
-509.0
-509.0
439.0
-
443.0
-
Alum Ingot
Zinc Slab
Lead Ingot
Tin Slab
Nickel (4x4)
Scrap
Copper Heavy
Copper Uten.
176.0
183.0
139.0
1,485.0
1,128.0
175.0
185.0
139.0
1,488.0
1,133.0
180.0
190.0
133.0
1,475.0
1,142.0
180.0
190.0
133.0
1,473.0
1,148.0
474.0
430.0
475.0
432.0
---
---
Copper Mixed
Brass Utensil
Brass Huny
Brass Sheet
Alum Utensil
-327.0
327.0
339.0
136.0
-326.0
324.0
337.0
138.0
424.0
--145.0
428.0
--145.0
Virgin Metals
Copper Pat
Copper W/Bar
Delhi
Chennai
Bhiwandi
29,400
27,500 MS Ingots
38,500
29,200
Ferro Silicon 85
Titanium
175
Nov'14
Dec'14
Jan'15
Rate
296.00
296.60
296.30
Change
0.0
0.3
-0.4
Kanpur
38,200
Durgapur
34,500
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.
$/tr.oz.
26-Nov
26,700
36,800
1,197.5
16.61
1,196.6
16.54
Prev
26,615
37,190
1,199.0
16.66
1,197.1
16.55
Forex: Nov 26, 2014 (Rs/Unit Currency)
Buy
USD
61.90
61.82
EURO
77.05
GBP
97.40
97.29
SGD
47.54
—
—
AUD
52.63
YEN
0.5259
0.5249
SFR
64.06
Sell
76.94
47.46
52.57
63.96
Buy
Sell
Customs Notified Rates: Nov 06, 2014 [Rs.(Imp/Exp)]: US$ 61.90/60.90;Pound Sterling 99.50/97.30;Euro 78.00/76.15
US Bourses closed on record highs on
17:00
16:00
15:00
or 0.61 percent, to 4,787.32. Asian Markets
14:00
and the Nasdaq Composite added 29.07 points,
13:00
gained 5.8 points, or 0.28 percent, to 2,072.83
12:00
points, or 0.07 percent, to 17,827.75, the S&P 500
11:00
The Dow Jones industrial average rose 12.81
USD/INR - 26/11/14
61.82
61.83
61.84
61.85
61.86
61.87
61.88
61.89
61.90
9:00
Wednesday on the back of surge in tech shares.
10:00
Daily
3
Thursday 27, November 2014
opened on a mixed note where Nikkei is down
on the back of Yen strengthening against USD,
USD/INR Overnight VAR
Data releases today
down by 0.29%. Hang Seng is down by 0.36.
EUR German Prelim CPI m/m
Shanghai, Taiwan, Straits and Kospi are all up by
EUR German Unemploy Change
over 0.40%. Asian stocks hit a one-month high
0.3289
Forecast
Previous
0.0%
-0.3%
-1K
-22K
Source : Mecklai Financial
on Thursday as investors bet that more central
of October 2014. The bounce back will not
bank stimulus in China and Europe would
sustain and the major trend in this currency
shore up the global economy, while oil prices
pair will continue. Australia is the major supplier
tumbled to a four-year low as hopes for output
of commodities and as such the prices of
cuts by OPEC faded. MSCI's broadest index of
commodities continue to falter despite of rate cut
Asia-Pacific shares outside Japan advanced
in China. In the morning session today, Deputy
0.4 percent while Shanghai shares hit a three-
Governor of RBA Philip Lowe's commented on
year high, extending their rally after a surprise
its value and another slide in the price of iron
interest rate cut last week. U.S. financial markets
ore. Lowe reiterated that RBA thinks the Aussie
are closed on Thursday for Thanksgiving, with
remains too high and it will depreciate as the
many U.S. traders expected to take Friday off,
terms of trade decline. RBA thinks that a lower
although markets will be open.
value of the Australian dollar would be helpful
Currency Market
from an overall macroeconomic perspective.
Aussie was also pressurized as ore sinked by
The dollar edged down against the yen on
over 1 percent by today lowest since 2009
Thursday after lacklustre U.S. economic data
marking at 69.58 dollar per metric ton. Prices
pushed Treasury yields lower and dulled investor
are heading for 13 percent fall this month. The
appetite for the greenback. The dollar was down
Australian Dollar has been under pressure after
0.2 percent at 117.555 yen, continuing its slow
making a high of 0.9500. The RBA Governor
retreat from a seven-year high of 118.98 struck
has been making the currency weak by verbal
a week ago. The euro stood little changed at
intervention. From past 6 months the currency
$1.2504, having gained close to one percent so
has now trading down at 0.8500 at 4.18 pm IST.
far this week. The Australian dollar stood little
USDINR opened at 61.79, tad lower against
changed at $0.8555 after paring modest losses
its previous day close of 61.84 levels down by
in response to better-than-expected capex data.
5 paise. The pair is expected to remain in the
AUDUSD has witnessed a temporary relief
after bouncing back from the lows in the mid
range of 61.60-61.90 levels for the day.
Daily
6 mth
LIBOR
4
Thursday 27, November 2014
Major
Currencies
Today’s
Crosses
Spot
Cash
v/s INR
Forward Rates v/s INR (Export/ Import)
December
January
February
May
August
November
61.83/ 84
62.26/ 28
62.66/ 69
63.01/ 05
64.18/ 22
65.35/ 39
66.40/ 44
0.33
USD / INR
-
ATM Options (put/call)
-
-
0.00/0.43
0.00/0.65
0.00/0.81
0.00/1.28
0.00/1.67
0.00/2.03
0.15
EUR / USD USD /
JPY(100) GBP / USD
1.2504
77.32/ 33
77.86/ 89
78.39/ 41
78.84/ 88
80.37/ 40
81.93/ 96
83.37/ 40
0.15
USD / CHF AUD / USD
117.43
52.66/ 66
53.05/ 07
53.40/ 43
53.71/ 75
54.77/ 80
55.83/ 88
56.84/ 87
0.68
GBP / USD
1.5790
97.64/ 65
98.32/ 74
98.91/ 26
99.43/ 71
101.21/ 95
102.96/ 01
104.58/ 92
0.05
USD / CHF
0.9615
64.30/ 32
64.75/ 77
65.22/ 24
65.61/ 64
66.92/ 93
68.25/ 26
69.50/ 48
3.06
AUD / USD
0.8576
53.02/ 03
53.40/ 41
53.75/ 75
54.05/ 06
55.05/ 07
56.05/ 07
56.95/ 97
Source : Mecklai Financial
Precious Metal
Gold prices dipped for a second session
on Thursday, holding below $1,200 an ounce,
as outflows resumed from the top bullion
exchange-traded fund and traders remained
cautious before an upcoming Swiss referendum
on central bank bullion assets.
A weaker dollar after lacklustre U.S. data,
six-year lows. Traders are now waiting for Sunday's
Swiss vote on central bank gold reserves for more
trading cues. The vote is aimed at preventing
the Swiss National Bank from offloading its gold
holdings and obliging it to hold at least 20 percent
of its assets in gold, compared with 8 percent last
month. The most-recent opinion poll showed
support among Swiss voters for the initiative had
slipped to 38 percent.
however, checked losses in gold which is seen
as a safe-haven asset.
Base Metal
Precious metals are likely to remain quiet
Copper futures fell to an eight-month low
ahead of the U.S. holiday and the Swiss
as orders for business equipment unexpectedly
referendum on the weekend," he said. Spot gold
dropped in the U.S., the world’s second-biggest
slipped 0.1 percent to $1,195.90 an ounce by
consumer of the metal. Orders for non-military
0253 GMT, but trading is expected to be thin
capital goods excluding aircraft declined 1.3
with the U.S. markets closed for Thanksgiving.
percent in October, a government report showed
Bullion metal dipped 0.3 percent on
today. Economists in a Bloomberg survey expected
Wednesday as bearish market sentiment offset
a 1 percent gain. A slump in energy futures
a drop in the U.S. dollar. U.S. consumer spending
damped the outlook for some commodities.
rose modestly in October and a measure of
business spending plans fell for a second
straight month, suggesting some slowing in
Market Highlights - Gold (% change)
Gold
the pace of economic growth. But other data
Gold (Spot)
on Wednesday showed consumer confidence
Gold
(Spot -Mumbai)
approaching a 7-1/2-year high in November.
Comex Gold
(Dec’14)
Outflows from SPDR Gold Trust holdings fell
0.29 percent to 718.82 tonnes on Wednesday - near
MCX Gold
(Dec’14)**
Unit
Last
Prev.
day
$/oz
1197.6
-0.26
Rs/10
gms
26300.0
-0.19
$/oz
1195.0
-0.13
Rs /10
gms
26362.0
0.14
as on November 26, 2014
WoW MoM
0.3
-2.8
YoY
-3.6
-0.4 #N/A -11.7
0.4
2.0
-3.7
-0.4 #N/A -12.5
Source: Angel Broking
Thursday 27, November 2014
Daily
Copper futures for March delivery declined
Organization of Petroleum Exporting Countries
0.7 percent to settle at $2.9565 a pound at 1:14
will take a “unified position,” he said yesterday,
p.m. on the Comex in New York. Earlier, the price
without elaborating on what will be decided.
touched $2.935, the lowest for a most-active
Crude has collapsed into a bear market amid the
contract since March 24. This year, the metal has
highest U.S. output in three decades and signs
fallen 13 percent.
of slowing global demand growth. A Bloomberg
On the London Metal Exchange, copper for
News survey showed 20 analysts were evenly
delivery in three months dropped 0.5 percent to
divided on whether OPEC will reduce supply to
$6,571 a metric ton ($2.98 a pound). The price
support prices. The 12-member group, which
fell for the third straight day, the longest slump
pumps about 40 percent of the world’s oil, has
since Sept. 23. China is the top user. Among the
an official quota of 30 million barrels a day.
other base metal, Nickel declined on the LME,
Brent for January settlement declined as
while zinc, aluminum, tin and lead rose.
much as $1.47 to $76.28 a barrel on the London-
Energy Market
based ICE Futures Europe exchange and was
$76.58 at 3 p.m. Sydney time. It slid 58 cents to
Oil prices fell in early Asian trading on
$77.75 yesterday, the lowest close since Sept. 9,
Thursday as it became unlikely that producer
2010. The European benchmark crude traded at
club OPEC would announce large output cuts
a $3.88 premium to WTI.
during a meeting this week, and after Chinese
WTI for January delivery dropped as much
and U.S. stocks increased. Brent and West Texas
as $1.08, or 1.5 percent, to $72.61 a barrel in
Intermediate extended declines from the lowest
electronic trading on the New York Mercantile
price in more than four years amid speculation
Exchange. The contract fell 40 cents to $73.69
that OPEC will refrain from cutting output when
yesterday, the lowest close since Sept. 21, 2010.
ministers meet in Vienna today.
The volume of all futures traded was about 89
Brent futures slid as much as 1.9 percent
in London on Wednesday, dropping for a
fourth day. Falling prices will stabilize on their
own and Persian Gulf group members have
reached a consensus on production, according
percent above the 100-day average. Prices have
decreased 26 percent this year.
News & Report
Analysis
to Saudi Arabia’s Oil Minister Ali Al-Naimi. The
Market Highlights - Crude Oil (% change)
as on November 26, 2014
WoW
MoM
YoY
India's steel output grow 24%
in 5 years to 81.69 MT
Crude Oil
Unit
Last Prev.
day
Brent (Spot)
$/bbl
77.6
-0.3
-0.3
-10.0 -31.1
per cent during the last five years to 81.69 million
Nymex Crude
(Dec’14)
$/bbl
73.7
-0.5
-1.2
-9.2 -21.3
tonne in 2013-14, Parliament was informed on
ICE Brent Crude
(Dec’14)
$/bbl
77.8
-0.7
-2.0
-10.5 -29.9
MCX Crude
(Nov ’14)
Rs/bbl
4579.0
-1.3
-2.2
-8.9 -22.3
India's steel production has gone up by 24
Wednesday.
In a written reply to Rajya Sabha, Minister
of State for Mines and Steel Vishnu Deo Sai
said steel production was 65.84 million tonne
Source: Angel Broking
5
Daily
in 2009-10. The production went up to 70.67
million tonne in 2010-11 and to 74.29 million
tonne in 2011-12 and further to 78.42 million
tonne in 2012-13.
The Minister said an inter ministerial group
(IMG) has been set up in the Steel Ministry
for effective coordination and expediting
implementation of various investment projects
in the steel sector.
Sai said SAIL and RINL, two state-run steel
makers, have invested Rs 9,890 crore and Rs
1,512 crore respectively in the last fiscal.
"Steel is a regulated sector and the detail
of investment of the steel plants operating in
the private sector are not maintained by the
government," he said. Replying to another
question, he said Ministry of Mines has prepared
a draft of the Mines and Minerals (Development
and Regulation) (Amendment) Bill, 2014 seeking
to amend the existing Act.
6
Thursday 27, November 2014
Steelmakers to provide seed
capital for R&D in the industry
The country’s public and private steel
companies have identified a participative
funding formula for the proposed Steel Research
and Technology Mission of India (SRTMI), which
will spearhead research and development
(R&D) activities in the industry.Under this
formula, the steelmakers would bring in a seed
capital equivalent of Rs. 25 for every tonne of
crude steel produced in 2013-14, or Rs. 5 crore,
whichever is higher.
The companies are soon to finalise the
contributions
through
respective
board
approvals. The Government wants to establish
the SRTMI as a registered society with an initial
corpus of Rs. 200 crore within the next three
months, say steel ministry sources, who did not
want to be named.
The entity will invest in R&D for the steel
sector, and aims to raise steelmakers’ combined
investment level of 0.2-0.3 per cent of the
turnover to the international benchmark of 1-2
per cent.
According to estimates, about Rs. 130 crore
could be pooled in by the top integrated steel
makers, while the Steel Ministry has made a
commitment of providing Rs. 100 crore from the
Steel Development Fund.
NMDC may slash iron ore
prices in Dec
Falling global prices and subdued demand
may prompt country's largest iron ore miner
NMDC to cut the price of steel-making raw
material for the second month in a row in
December.
"When the prices are falling in international
markets, is there any scope for the state-run
Daily
Thursday 27, November 2014
firm to hike the price? We may have to reduce
material to cash on the subdued price, which is
the price in December, though the quantum of
now hovering around USD 70 a tonne.
the cut will be decided later," a company source
said.
NMDC's sales also dipped in October
compared to the last month. Compared to
NMDC had reduced the rate of lumps, which
September, crude steel production declined by
has higher iron content, by Rs 200 per tonne for
0.5 per cent in October, 2014 mainly by decline
November to Rs 4,400 a tonne, after holding the
of 0.9 per cent in case of major producers and a
price for previous four months.
0.1 per cent decline in production by mini and
The company, however, rolled over the
other producers.
October price for fines, the inferior grade of the
The official said the possible price cut
raw material, now stands at Rs 3,16o per tonne.
would have an impact on the realisation of the
The possible reduction in the price of iron
company for current quarter.
ore is likely to happen because of two major
NMDC's net profit fell during the July-
reasons - subdued demand in the domestic
September quarter to Rs 1,567 crore compared
market and nosediving international prices of
to Rs 1,915 crore in the immediate past quarter.
the raw material. The root cause of the two are
NMDC, which reviews prices every month
incidentally the same.
Even as the rate of growth in domestic steel
going by domestic demand, had not tweaked
rates for four months starting from July.
production has gone up in the recent months,
The company has sold 17.65 million tonne iron
barring a few having captive mines, major
ore during the April-October period and plans to
producers have started importing the raw
raise it to around 32 MT in the current fiscal.
7
Daily
Thursday 27, November 2014
High-level panel clears
mining project of Western
Coalfields
A high-level panel has recommended
environment clearance, with some riders, for
the expansion of mining project of CIL's arm,
Western Coalfields Ltd, in Maharashtra.
The Expert Appraisal Committee (EAC)
"after detailed deliberations, recommended
for granting EC (Environment Clearance) with...
specific conditions", according to an official
under
und
der Ministry
Ministry
i
off Steel,
Steell h
has
as b
been
een all
allotted
llotted
d a mine
miine
document. The conditions are that rain water
in Karnataka.
harvesting and other facilities should be created
The Union Minister of State for Steel and
for ground water recharge, no bore well should
Mines Vishnu Deo Sai told Lok Sabha in a written
be made close to the mine and plantation of
reply that the Ministry of Mines had sanctioned
certain species should be avoided and only
30-year lease for iron and manganese ores in an
native plant species be planted, the document
area of 116.55 hectares in Hombalagatta and
said. The proposal is for expansion of Pauni
Hosahalli villages of CN Halli Taluk in Tumkur
opencast mine from from 0.72 million tonne per
district. Vishnu Deo Sai said the requisite
annum) to 0.90 MTPA of WCL.
clearances are under process with concerned
The panel had earlier deferred its decision on
authorities. KIOCL has expertise in mining and
the project and sought information for further
beneficiation of iron ore for more than 25 years.
consideration. It had sought details like action
The company had operated a mechanised
plan alongwith time frame and budget for
magnetite iron ore mine to produce 22.5 million
construction of check dam/water conservation.
tonne of run of mines (ROM) a year with modern
The panel had earlier said "there are several
beneficiation technology to produce 7.5 million
non-compliances of the EC (Environment
tonne of iron ore concentrate in the country till
Clearance) conditions as submitted by the
the end of 2005.
RO (Regional Office), MoEF ( Ministry of
ArcelorMittal, Marcegaglia
submit offer for Italy's Ilva
steel plant
Environment and Forests)". The project was
accorded environment clearance in 2006
for 0.72 MTPA. The Coal India LtdB arm had
sought environment clearance for 25 per cent
expansion of the coal mining project.
KIOCL allotted mine in
Karnataka
ArcelorMittal, the world's biggest steelmaker,
has submitted a non-binding offer together with
Italian steel processor Marcegaglia for Italy's Ilva
steel plant, holding out a lifeline to the lossmaking plant mired in an environmental scandal.
KIOCL Ltd (formerly Kudremukh Iron Ore
"I can confirm that the offer of ArcelorMittal-
Company Ltd), a profit making Central PSU
Marcegaglia was presented last Monday to the
8
Daily
Thursday 27, November 2014
Government Commissioner for Ilva, Piero Gnudi.
eight blocks for private cement companies, a
The offer is not binding and has a deadline of 30
senior government official said. Government
days," a spokesman for Marcegaglia said.
firms could be offered 24 blocks for power
Privately owned Ilva, Europe's biggest steel
plants and one block for steel plants.
plant by output capacity, was placed under
The panel has suggested auctioning of all
special administration last year after being
blocks that were earlier allocated to state mining
accused of failing to contain toxic emissions,
corporations for commercial use, he said.
threatening the jobs of its more than 16,000
The
committee
has
recommended
employees. The company, which supplies the
earmarking blocks owned previously by public
automotive and manufacturing sectors, is losing
sector enterprises to government companies
tens of millions of euros every month.
on nomination basis and auctioning mines that
Govt may auction 49 coal
blocks to pvt cos in pilot
round
were earlier owned by private firms.
The government is likely to auction 49 coal
blocks to private companies in the pilot round
of bidding, of which 24 are expected to be
reserved for steel firms and 17 for the power
sector.
A sub-committee set up to earmark coal
blocks for allocation to government firms and
auction to private companies and classifying
the blocks for use in steel, cement and power
sectors has recommended sparing the balance
"Private blocks have been recommended for
auction, while government blocks for allotment
through nomination. But mines that were with
state mining utilities for commercial purpose
have been recommended to be bid out to either
power or cement firms," the official said.
The committee has also recommended
clubbing of some coal blocks to conserve coal
and make mining feasible. Blocks that could
be clubbed and auctioned to private sector are
Gare Palma IV/2 and Gare Palma IV/3 that were
owned by Jindal Steel & Power.
9