Govt Slaps Anti-Dumping Duty On Cold-Rolled Flat Steel Products

Less than a fortnight after imposing anti-dumping duty on hot-rolled flat steel products was imposed, the Finance Ministry has extend a similar levy on another grade of steel — cold-rolled flat products.

Continuing its protectionist approach towards the domestic steel industry, the government has imposed provisional anti-dumping duty on cold-rolled flat products of steel imported from China, South Korea, Japan and Ukraine, for six months.

Cold-rolled flat products of steel are used in sectors such as automotive, appliances, furniture, electrical panels, general engineering, capital goods, construction, packaging including drums and barrels, coating and plating including galvanising, colour coating, tinplates etc.

This Revenue Department move has come less than a fortnight after the Designated Authority in the Commerce Ministry recommended levy of provisional anti-dumping duty. The anti-dumping duty imposed is difference between $ 594 per tonne and “landed value” in case of specified producers from these four countries. In case of some producers, a ‘Nil’ rate has also been specified by the Revenue Department.

Essar Steel India Ltd, Steel Authority of India Ltd, JSW Steel Ltd and JSW Steel Coated Products Ltd had jointly filed the petition seeking anti-dumping duty on cold-rolled flat products of steel from these four countries.

According to steel industry officials, with the minimum import price on 66 products extended for two months in early August, the anti-dumping duty on hot-rolled flat steel products and the same on cold-rolled steel products, the entire gamut of steel imports have been covered.

The government has come out with these measures so that the domestic industry remains competitive after steel imports shot up 20 per cent year-on-year at 11.208 million tonne in 2015-16.

When minimum import price was first levied in February 2016, it helped bring down imports. During April-July 2016, total steel imports have come down to 2.39 million tonnes or 34 per cent lower than the same period last year.

Domestic production which grew 3.7 per cent to 35.238 million tonne during April-July 2016 has managed to substitute falling imports. But, steel consumption has largely remained stagnant at 26.18 million tonnes during the period.

Steel stocks

As the anti-dumping duty on cold-rolled flat steel products was expected, shares of domestic steelmakers did not react much to the development.

“The positive impact had been factored in by the market. Therefore, there was not much action on the trading floor with the steel stocks on Thursday,” a Mumbai-based analyst said.

On Thursday, shares of JSW Steel shares closed 0.45 per cent higher at ?1,779.95, Steel Authority of India Ltd closed 0.1 per cent lower at ?48.1, Tata Steel closed 1.06 per cent lower at ? 387.20 while Jindal Steel and Power Ltd closed 4.02 per cent higher at ?85.45.

However, stocks of steelmakers have rallied over the last one year due to the policy decisions that have kept them competitive against imports.

In the last one year, Tata Steel’s shares rose 53 per cent, JSW Steel’s share price has grown 80 per cent, Jindal Steel and Power Ltd’s stock price rose 20 per cent and only SAIL’s share price has slumped by 16 per cent.

 

Sources :.thehindubusinessline.com

Buffalo Meat Exports On Recovery Path

 India's buffalo meat exports have recovered from last year's sharp decline on reduced supplies from Brazil, the world's largest exporter.

Data compiled by the Agricultural and Processed Food Export Development Authority, showed India's buffalo meat exports at 280,853 tonnes worth $814.09 million in April-June against 269,756 tonnes worth $853.90 million in the corresponding period last year.


The unit value realisation declined from $3,165.44 a tonne in April-June 2015 to $2,898.65 a tonne during the same quarter this year.

India's buffalo meat exports to major importing countries, especially in West Asis, have gained due to the supply uncertainty in Brazil and Pakistan.

"India has raised its certified halal meat supply in the last few months. Since many export-oriented units have modernised their plants, importers have now shifted their demand from countries like Portugal, Argentina and Pakistan," said Arshad Ali Quddus, proprietor of Al Quddus Sons International, a New Delhi-based buffalo meat exporter.

India is gaining a market captured earlier by Brazil due to lower realisation by its exporters. The Brazilian real has appreciated 12 per cent against the dollar after a steep fall last year. By contrast, the Indian rupee has depreciated by 2 per cent.

Buffalo meat exports on recovery path
India's buffalo meat exports declined in volume and value in 2015-16 on a slump in demand. From 1.48 million tonnes worth $4.78 billion in 2014-15, exports fell to 1.31 million tonnes worth $4.06 billion in 2015-16.

"The recovery during April-June is likely to continue," said an exporter based in Uttar Pradesh.

Credit rating agency ICRA forecasts India's buffalo meat exports will be driven by improving infrastructure, a sizeable buffalo population, the relatively lower price of Indian buffalo meat, and steady demand in the international market. ICRA estimates buffalo meat exports will grow at an annual rate of 8 per cent to Rs 40,000 crore by 2020-21.

"While India has been exporting buffalo meat for almost two decades, this industry has only gained momentum in the last decade. This can be attributed to multiple factors, such as increasing demand from countries like China, Vietnam and Thailand, the slaughtering method meeting the religious requirements of certain ethnicities, price competitiveness, high buffalo population, and low domestic consumption," said Sabyasachi Majumdar, senior vice-president, corporate sector ratings, Icra.

Uttar Pradesh has 28 per cent of the country's buffalo population and is the leading buffalo meat-producing state, housing 60 per cent of standalone slaughterhouses and meat processing units.

Indian buffalo meat exports have grown at 29 per cent annually from Rs 3,533 crore in 2007-08 to Rs 26,682 crore in 2015-16, accounting for around 20 per cent of the world's total buffalo meat exports by volume.

 

Sources: business-standard.com

Change In Eu Regulations May Pose Problems For Indian Grape Export

A change in regulations on pesticide residue levels in grapes proposed by the European Union (EU) is likely to pose problems for the export of Indian grape to these countries in the coming season.


The EU has proposed to bring down residue levels of chlormequat chloride (CCL), a plant growth regulator, from the existing levels of 0.05 ppm (papers per million ) to 0.01 ppm soon.

Top officials of the Maximum Residue Level (MRL) Committee met in Pune, along with senior officials of the Union commerce department, APEDA at the National Research Centre for Grapes, has decided to approach the EU to file a say on behalf of Indian exporters, senior officials said.

In 2010, Indian grape exports faced a setback, with EU reluctant to accept Indian table grape consignments as chlormequat chloride — a plant growth regulator — was detected in excess of the prescribed maximum residue level (MRL).

In 2009, EU had come up with new regulations on pesticides, raising the chemicals to be monitored from 98 to 167.

Unaware of the changed rules, Indian exporters who did not meet the new standards faced had rejection. Although only less than 10% of the total export volumes were rejected, the issue has escalated into a big one, going by the worry writ large on the face of both European delegates and Indian grape exporters.

Indian grapes began to find favour after 2014 when a 1.92 lakh tonne of grapes were exported by Indian traders to around 94 countries. Of this Europe and the UK together accounted for the largest share of 65,000 tonnes.

According to Jagannath Khapre, president, All India Grape Exports Association who was also present for the meet, it was decided at the meeting to seek a five-year period from EU to ensure that the existing residue levels in the soil completely go down.

CCL as a chemical is not hazardous and is used by grape farmers as a plant growth regulator, he explained. The European Food Safety Authority has also prescribed 1.06 ppm as a safe level and the existing European regulations state that the residue levels should be around 0.05 ppm, he explained.

The detection machines with EU until now have been able to detect pesticides to the level of 0.05 ppm and with advanced technology can now detect up to 0.01 ppm, he said.

A decision has been taken to present the relevant documents before the European Union authorities and seek a status quo on the existing levels, he said.

Khapre said the EU had proposed the changes in the regulation in June and as soon as it came to the notice of the association and other industry people, they approached the commerce ministry that responded by sending officials to understand the situation.

Around 60,000 tonne was exported to EU for the 2015-16 season. Canada has granted market access for the Indian fresh grapes. This follows the recent Indo-Canadian bilateral discussions held in New Delhi.

However, the Indian exporters will be able to take advantage of this development only from the next season. Canada will open a new market for the Indian exporters, who have been mainly shipping the fresh grapes to European countries.

But Canada has imposed conditions that exporters have to register the vineyards and pack houses, and maintain traceability.

The Netherlands is the largest buyer of Indian fresh grapes, accounting for more than half of the exports, followed by the UK and Germany.

 

Sources:  financialexpress.com

World Beating Growth Lures India Refiners To Myanmar Fuel Market

Indian refiners are seeking a foothold in neighboring Myanmar to capitalize on growth prospects as the Southeast Asian nation emerges from a half-century of military rule.

Numaligarh Refinery Ltd., a unit of India's second-biggest state-run refiner Bharat Petroleum Corp., plans to export gasoline to Myanmar. Indian OilBSE 0.89 % Corp., the largest refiner, is also keen on tapping the fuel retailing opportunity. An International Monetary Fund forecast for world beating economic expansion in 2016 points to growing demand for petrol and diesel in the nation.

"The growth opportunity in Myanmar is fabulous," Numaligarh Refinery's Managing Director P. Padmanabhan said in an interview in New Delhi. "We're talking to the Myanmar government."

Padmanabhan said Numaligarh Refinery eventually plans to supply 500,000 metric tons of gasoline every year, which is equivalent to about a quarter of the estimated 50,000 barrels a day of petrol Myanmar currently consumes. While the Asian Development Bank estimates the country needs $80 billion of power, transport, and technology projects through 2030, challenges in fuel retailing include industry fragmentation, shifting rules and illegal outlets.

The $67 billion economy of 54 million people offers untapped opportunities for foreign companies, after the US eased sanctions following elections last year.

It imports over 60 per cent of its refined fuel, and three domestic refineries with a combined potential for 57,000 barrels a day operated at 30 per cent capacity in 2015, according to BMI Research.

The forecaster estimates Myanmar's fuel consumption will expand at an average of 6 per cent yearly during 2016-2020, outpacing Cambodia, Vietnam and Thailand.

Numaligarh Refinery is prepared to truck supplies in while the company builds a pipeline through the Indian border to Tamu in Myanmar.

"If the price is very attractive in Myanmar, I'm willing to start tomorrow," Padmanabhan said in the Aug. 10 interview, adding he's seeking to boost exports to other neighbors such as Bangladesh, Bhutan and Nepal.

The Assam-based refiner in March exported India's first shipment of diesel to Bangladesh in about eight years. Padmanabhan said the target is at least 1 million metric tons of diesel exports annually to the South Asian nation.

Indian Oil Chairman B. Ashok told Bloomberg in March the state-run company owns three refineries in the northeast that can supply fuel to Myanmar.

China is Myanmar's largest trading partner, and China's Guangdong Zhenrong Energy Co. and local partners are planning a $3 billion oil refinery. That underscores the competition India faces for access to the opportunities Myanmar is thought to offer.

 

 

Sources:economictimes.indiatimes.com

Rupee Weakens Past 67 Mark Per Us Dollar

The Indian rupee on Friday weakened past the 67 mark, to hit a three-week low, against the US dollar as traders expect that the Reserve Bank of India (RBI) may delay cutting interest rates after recent higher inflation data. Traders also remained cautious ahead of the announcement of a new governor for the RBI expected anytime now.

At 1.30pm, the home currency was trading at 67.03 a dollar, down 0.30% from its previous close of 66.81. The rupee opened at 66.96 a dollar and touched a low of 67.03, a level last seen on 29 July.

India’s wholesale price inflation shot up to 3.55% in July from 1.62% a month ago on the back of rising prices of food and non-food articles, while consumer price inflation was at 6.07% in July from 5.77% in June on the back of rising food prices.

The 10-year bond yield was trading at 7.137%, compared with its Thursday’s close of 7.143%. Bond yields and prices move in opposite directions.

India’s benchmark Sensex index fell 0.22% or 61.75 points to 28,061.69. So far this year, it has gained 7.5%.

The rupee is down 1.3% till date this year, while foreign institutional investors (FIIs) have bought $5.73 billion in equity and sold $1.14 billion in debt markets.

Asian currencies were trading lower. South Korean won was down 0.92%, Taiwan dollar 0.8%, Malaysian ringgit 0.5%, Singapore dollar 0.46%, Philippines peso 0.41%, Indonesian rupiah 0.33%, China offshore 0.29%, Japanese yen 0.26% and Thai baht 0.28%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.438, up 0.29% from its previous close of 94.157.

Minutes of the US Federal Reserve’s last meeting struck a more dovish tone than earlier comments by New York Fed president William Dudley, who had flagged the possibility of borrowing costs being increased as soon as next month. US officials have twice cut projections for their rate hike path as economic weakness and volatile financial markets undermine the case for policy to be tightened, Bloomberg reported.

 

Sources :livemint.com