Iron ore exports from India to decline in FY ’11

Slowing demand from China, the largest producer of steel in world, and a ban on exports by the state of Karnataka has resulted in sharp decline in India’s iron ore exports in the first half of the current fiscal even as the global prices remain reasonably strong.

The Federation of Indian Mineral Industries (FIMI) expects that iron ore exports from India to decline by around 20% at least over the current fiscal as the slowing demand from key importers, high export duty imposed by the central government and ban by Karnataka hits India’s shipments.

India’s Steel Capacity to rise to 120 mtpa

India’s total Steel capacity is likely to increase to 120 million tonnes per annum by December 2012.

The following PIB release gives details of the planned greenfield & brownfield Steel projects in India:

http://pib.nic.in/newsite/PrintRelease.aspx?relid=69543

Steel Projects in India: Updates

nearly 222 Memorandum of Understanding (MoUs) have been signed by various State Governments for setting up various steel units in their respective states for total capacity of approximately 276 million tonnes.

While a project by Posco in Orissa is still facing hurdles regarding clearance from the environment ministry’s forest advisory committee, it is included as a part of the proposed projects. 

PIB gives a brief overview of the proposed steel projects. Click to read

Gold Milestones: The Precious Facts

Gold has been one investment which is closest to the hearts of many, especially if you are from the Gulf or from south-east Asia.

I came across an article by Reuters which reveals glaring facts about gold prices and milestones. Seems interesting, of course one would require to study in-depth the reasons behind the sharp movement in prices.

Six Core Infrastructure Sector Gives Mixed Signals

The index of the six core industries, which include crude oil, petroleum refining, coal, electricity, cement and finished steel, has a combined weight of 26.7% in the index of industrial production (IIP).

The six infrastructure industries grew 3.9% in July, marginally higher than in June, but contraction in steel and cement has raised doubts about the overall industrial output growth, which slowed to a 13-month-low in June. This is because the performances of these sectors are considered advance indicators of overall industrial activity. While cement and steel show investment demand, the energy sectors reflect pace of overall economic activity.

Coal Constrains Core Sector Growth in June 2010

Growth in the six key infrastructure sectors decelerated for the third month in June. This is primarily due to last year’s high base effect. During April-June 2010, the output rose 4.6% compared to 4.3% in the year-ago quarter.

• Coal production, which declined 0.4%, was the biggest drag on the core sector output in the June quarter.

Steel Industry at a Glance

India is the 5th largest steel producer in the world. It is expected to become the second largest producer of crude steel by 2012, doubling its capacity to 124 million tonnes.

Steel production rose 4.2% to reach 60 million tonnes in 2009-2010. Domestic crude steel production grew at a compounded annual growth rate of 8.6 per cent during 2004-05 and 2008-09, according to the Steel Ministry.

The National Steel Policy 2005 had projected an annual steel consumption growth of 7 % based on a GDP growth rate of 7-7.5% and production of 110 million tonnes of crude steel by 2019-20.

Indian Industry News: India to Become 2nd Largest Steel Producing Nation by 2012

http://pib.nic.in/release/release.asp?relid=63448

Six core infrastructure industries grow 5% in May’10

Growth in India’s six key infrastructure sectors slowed further in May from the figure for the previous month that was revised upwards. The index of the six core industries, having a combined weightage of 26.7% in the index of industrial production (IIP), stood at 266.9 in May and grew 5% compared to 5.4% in April.

Industry-wise financial performance in 2009-10

Financial performance reported by the top echelons of Corporate India (represented by sample set of BSE 200 companies) was marked by a sharp movement in parameters across quarters. The trend in annual performance was starkly different from the fourth quarter 2010. While sales grew 4.4%, net profit surged 16.5% in 2009-10 over the previous year. Sales growth has been slow during the year as revenues recorded a YoY decline in the June and September 2009 quarters. Pick-up in demand for automobiles and metals and rise in commodity prices led to higher sales.