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1 VITAL INDUSTRY UPDATES Nickel gives up its gains - 24/08/2015 Nickel, like other base metals, has suffered a major price correction in the last one year. The price of nickel has tumbled over 40 per cent since August last year. The nickel futures contract traded on the Multi Commodity Exchange (MCX) recorded a high of 1,204 per kg in September last year and has tanked about 44 per cent since then. It is currently trading at On the charts,, the downtrend that had begun in 2014 remains intact. Nickel prices appear likely to extend this fall further in the coming weeks. The bounce back from the July low of failed to gain enough momentum to breach the 21-day moving average resistance. The contract has reversed lower after recording a high of 761.5, suggesting that the bounce-back was just a brief pullback of the downmove that flagged off from the highh of 874 recorded in June. The 21-day moving average at 696 is a key short-term resistance for the contract. A furtherr fall in prices to test the next key supports at 640 and 625 looks likely now. The downside pressure on the contract may ease only if it records a decisive break and a strong close above the 21-day moving average. Such a break can take it higher to test the significant short-term resistance at 760. However, the short-term outlook will turn bullish only after the contract surpassess this hurdle decisively. The medium-termm trend is also down. The sharp fall below a key long-term support around 800 in June has increased the momentumm of the downtrend that has been in place since The 21-week moving average at 785 and trendlines at 800 and 825 are the key medium-term resistances for the contract. A falll to 580 is possible as long as the contract trades below these resistances. A break below 580 will see the downtrend extending even further to 500.

2 A decisive weekly close above 800 will be first sign of a trend reversal. That would increase the possibility of the contract breaching 830 with the next target at Strong downtrendd On the global front, nickel spot prices on the London Metal Exchange (LME) have been in a strong downtrend. The commodity recorded a high of $21,,200 per tonne in May 2014 and has been continuously falling since then. It is currently trading at $10,168 and is likely to test the psychological support level of $10,000 in the coming weeks. A strong break below this support level can drag the price further lower to $9,000 or $8,800 thereafter. Important support is seen in this $9,000-8,800 zone which could halt the fall. A reversal from this support zone can take the LME-Nickel price higher to $12,000. On the other hand, if the price fails to reverse higher from $8,800 and falls below this support, then the commodity could face a further onslaught from bears. In such a scenario, there could be significant chances of the price falling to $8,400 or even lower levels. From a fundamental perspective, the nickel witnessed a strong 48 per cent rally last year, mainly due to supply fears. Indonesia had banned the export of unprocessed ores from January 2014 in order to promote domestic processing. This move from the world s top exporter of nickel ore turned the market nervous and fuelled fears of a huge supply disruption. Also, sanctions on Russia, the second-largest refined nickel producer, added to supply worries and further supported the rally. The globall nickel market was expected to run into a deficit in 2015 for the first time since But Philippines, one of the major nickel producers, increased its output in order to fill the vacuum and kept the market adequately supplied. This, combined with the Chinese slowdown, triggered a quick revision in supply estimates. Currently, the market is expected to end 2015 with a surplus of 20,000 tonnes, according to dataa from the International Nickel Study Group. This has caused nickel to give back most of the price gains made last year.

3 Export of rice bran oil in bulk allowed The major rice producing countries of Asia India, China, Thailand, Japan and Vietnam have decided to promote the use of rice bran oil and facilitate its global trade. Even the government has allowed export of the commodity in bulk. Trade expects rice bran oil exports to jump sharply to 10,000 tonnes this fiscal against 2,000 tonnes last year. The newly-formed International Association of Rice Bran Oil is in the process of being registered in Thailand and will be headquartered out of Bangkok, said a senior official of the association. The official said that Pakistan too enrolled to become part of the organisation and more rice producing countries in the continent are expected to join. Bran, the brown layer on rice grain, has per cent oil content. Though the oil is considered cheap and healthier, it has not yet gained popularity among Indian consumers as it does not have any particular taste unlike groundnut, soyabean or sunflower oils, he added. Globally, about 15 lakh tonnes of rice bran oil is produced, of which India is the largest producer by far mainly for domestic consumption, according to available data. More mining cos gear up to begin iron ore extraction in Goa Following Vedanta, three more mining companies have expressed their intent to resume iron ore extraction activity in the state, a mining exporters' body in Goa has said.

4 The state's mineral resources companies like Fomento Resources, V M Salgaocar Brothers and Chowgule, etc have confirmed their intent and initiated preparatory acts to begin mining-related activities after the monsoon in September-October this year, Goa Mineral Ore Exporters Association (GMOEA) said in a release. Vedanta's Sesa Goa has already announced resumption of iron ore extraction at their Codli lease, which was Asia's biggest mining site before mining was shut down in "These activities, as in the past, would gain momentum post the Ganesh Chaturthi celebration," GMOEA secretary Glennn Kalavampara said. Pursuant to the judgement of Supreme Court in April 2014 and High Court in August 2014, both the Central and state governments have acted and complied with the directions of both the courts, he said. Goa government has renewed the mining leasess of 88 mines, all which are under scanner of Accountant General of Goa for failing to obtain clearancee from the Indian Bureau of Mines (IBM). Mine auction may start by October- November, DMF norms to come soon Mineral-producing states are expected to start auction of mines bearing minerals such as iron ore, bauxite and limestone by October and November, Steel and Mines Minister Narendra Singh Tomar said today.

5 I feel mining auction will begin in October and November. I have spoken to all the Chief Ministers of the mineral-producing states, and the process has started there," Tomar told reporters here. The Minister also said the government is in the process of finalising the guidelines of the District Mineral Foundation (DMF) as well as the miners' contribution to it and will notify them very soon. "DMF rules are being framed and it will be done soon. The amount of contribution will also be decided soon," he added. On the issue of steel producers terming the recent hike in import duty for steel products as "ineffective", the Minister said the Ministry's effort is to see how it can protect the industry. "On this, we keep in touch with the industry as well as the Ministriess concerned from time to time,," Tomar added. Domestic producers are complaining that the recent hike of 2.5 per cent on import duty on steel products will not help the industry as this will be offset by China's move to devalue the yuan. On demand by domestic aluminium producers on hiking import duty due to adversee impact from cheap Chinese imports, Tomar said: "Industry thinks from its perspective and the government thinks from its own. Our effort is to coordinate with all stakeholders and take a decision." Domestic aluminium producers have been urging the government to increase the import duty on the metal as the global prices are at record low and China is exporting the metal at very cheap rates, which is adversely impacting the sector in the country.

6 Asked on the government's take on the Posco issue, Tomar said that since the Mines and Minerals (Development and Regulation) Amendment Act, 2015 has been passed, Posco will now have to bid for mines. Explaining the whole issue surrounding the global steel giant, the Minister said: "Posco had an MoU with the Odisha government. When the NDA government came to power, we saw thatt the MoU was not renewed. We asked the Odisha government to notify the area (mining) and send it back to us and then we can think of acting on it."