VITAL INDUSTRY UPDATES - 06/08/2015 MCX copper tests support The copper futures contractt traded on the Multi Commodity Exchange (MCX) tested its crucial support at 330 a kg on Monday and has been hovering above this support since then. It is currently trading at 332. The contract seems to be not gaining momentum for a strong rise from the current important support level. This leaves high risk for the contract to break below 330 in the coming days. Such a break can drag it lower to 323. It will also keep the contract pressured on the downside to the target of 310.. Traders with high-risk appetite can wait and go short if the contract breaks below 330 at 329. Stop-loss can be kept at 334 for the target of 323. On the other hand, if the contract manages to sustain above 330, it can stay range-bound between 330 and 336 for some time. A strong break above 336 is needed to ease the downside pressuree and take the contract higher to 340 or even 345 there after. The price action in the coming week is going to be very crucial. The commodity could wait for further cues from the US non-farm payrolll and the unemployment rate data due for release on Friday. The outcome of this data could increase the volatility in the market and may set the trend for the contract.
Renewal of GSP by US to help Indian exporters he US government s decision to renew the Generalised System of Preferences (GSP) programme till December 31, 2017 will benefit exporters as it would enable duty-free shipment of 3,500 product lines, including textiles, gems and jewellery, engineering goods and chemical products to the US, the Federation of Indian Export Organisatio ons (Fieo) said. Welcoming the US step to renew the GSP, whichh had expired on July 31, 2013, Mr Ajay Sahai, Chief Executive Officer of Fieo, said, "This is going to boost exports to the US markets. Demand is going up there and exporters will benefit from such a move. This has been one of our long-pendingg demands. We can expect merchandise exports to see a turnaround as our competitiveness will now increase." Under the GSP, a wide range of industrial and agriculturall products originatingg in certain developing countries are given preferential access to American markets. Importers in the US get notice from the US Customs and Border Protection (CBP) as well as a Federal Register communication. The duty waiver benefits have taken effect from July 29, 2015 and retroactively from August 1, 2013 to July 28, 2015, Fieo said, adding that US importers would be able to claim refund against duties paid on items covered under the GSP.
India imports 75 pc of steel from China, Korea & Japan in Q1 Almost 75 per cent of the 25.7 lakh tonnes of finished steel was imported in the first quarter of the current fiscal from China, South Korea and Japan, the Minister of Steel and Mines, Mr Narendra Singh Tomar, said in Parliament. The Minister informed the Lok Sabha that China led the tally with 7.23 lakh tonnes (lt), followed by South Korea 6.03 lt, Japan 5.9 lt, Ukraine 95, 340 tonnes and Germany 89,070 tonnes. Indonesia with 83,300 tonnes, Russia 56,720 tonnes and Taiwan 44,840 tonnes were the other major exporters of finished steel to India, he added. Centre may cut down number of coal blocks linked to UMPPs in Odisha, Jharkhand The government is likely to trim the coal blocks attached to the proposed ultra mega power projects (UMPPs) in Odisha and Jharkhand to ensure that the winning companies do not get excesss coal with the projects. The coal ministry has asked its technical team to split two coal blocks which were attached to the Tilaiya UMPP in Jharkhand that had been surrenderedd by Reliance Power. The company last week dragged the government to Delhi High Court for cancelling a surplus mine attached to the Sasan UMPP in Madhya Pradesh. The coal ministry has written to the Central Mine Plan and Design Institute (CMPDI) to review the coal block allocation to the Tilaiya UMPP, a government official said. The two captive blocks attached to Tilaiya Kerandari B and C have reserves of up to 1,2000 million tonnes against the required 850-900 million tonnes of coal. The surplus coal will be sufficient to fire another 1,300-
MW power projects. The move follows a Supreme Court directive that coal allocated for UMPPs should not be diverted to other projects, said the official, requesting not to be named. The Supreme Court had on August 25 said that "the coal blocks allocated for UMPP would only be used for UMPP and no diversion of coal for commercial exploitation would be permitted". The government had in May cancelled a special dispensation to Reliance PowerBSE 1.48 % that allowed the company to use excess coal in three blocks attached to its Sasan UMPP in another private project. The coal ministry on May 7 issued a gazette notification cancelling Chhatrasal coal mine that was surplus and restricted outpu of the other two. The company in its petition in court said that the availability of coal from Chhatrasal along with two other mines Moher and Moher Amlohri Extensionn coal blocks was a fundamental condition and the foundation of the bid, which resulted in offering highly competitive tariff. The petition said that Chhatrasal coal block was crucial for sustainability of competitive tariff of Sasan UMPP that was bagged at a competitive power tariff of Rs 1.19 per unit. The Comptroller and Auditor General had in its report on coal block allotments alleged that diversion of excess coal from mines supporting Sasan and Tilaiyaa UMPPs would mean a benefit of Rs 1,20,087 crore benefit to Reliance Power. The coal ministry' 's guidelines requiree companies to sell surplus coal from captive blocks to the nearest subsidiary of state-run monopoly miner Coal India at a price which meets their cost of mining.
Chambal Tripura Fertilisers plans a plant in Chambal FertilisersBSE 1.74 % has signed a pact with ONGC and the Tripura government to set up a urea plant in the state, Parliament was informed today. Based on the pre-feasibility the availability of gas, a decision will be taken on the project, Minister of State for Chemicals and Fertilisers Hansraj Gangaram Ahir said in a study, which is underway, identificationn of land and ascertaining written reply in the Lok Sabha. Chambal Fertilisers & Chemicals Ltd (CFCL) has informed that a non-binding memorandum of understanding has been signed amongst Oil and Natural Gas Corporation (ONGC), CFCL and Govt of Tripura to conceptualise and develop a gas based fertiliser plant in Tripura," Ahir said in a reply. The Department of Fertilisers would facilitate the setting up of the urea plant by taking up matters like allocation of gas and providing gas connectivity with the Petroleum Ministry. The subsidy for urea produced will be provided as per the provisions of New Investment Policy (NIP)-2012 and its amendment thereof, the minister said Tataa Steel makes long products business stand-alone unit Tata SteelBSE 0.65 % has spun out its long products unit making items such as plates, sections and wire rods into a standalone business to better pursue
strategic options, after the reported withdrawal of Klesch Group from talks to buy the division. India-based Tata Steel, Europe's second-largest steelmaker, had said in October it was in talks to sell its loss-making in Scunthorpe in the English midlands, to long products operation, which employs 6,500 people mostly Klesch. "The business started operating as a standalone, wholly owned subsidiary from Aug. 2," Tataa said in a statementt on Tuesday. "The standalone status for the long products business will also enable alternative strategic options to be assessed and progressed." Long products are used in constructio on, railways, shipbuilding and engineering. Tata said it noted media comments by the Swiss-based Klesch Group of its intention to withdraw from further negotiations about the potential sale of the long products business. The talks with Klesch were "among a number of strategic options" Tata has been evaluating, it added. The Klesch Group, a global commodities business involved in chemicals, metals and oil production and trading, was not immediately available for comment. The head of the company, Gary Klesch, was quoted by the Financial Times as saying he was withdrawing from talks in "frustration at the (UK) government's apparent lack of interest in old-econo my industries".