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 Chinese News
0blt1CISA forecasts steel exports fall in near fut
0blt1Monday Market Monitor - China (WEEK 45) -
0blt1CISA outlines 5 steps to stabilize Chinese
0blt1Chinese CRC export prices remain weak
0blt1Ilafa calls for measure against threat of
0blt1China metallurgical products export situation
0blt1Chinese steel product export to different
0blt1Chinese HDG export prices further go down
0blt1Wuhan Steel Q3 net profit up by 40% YoY
0blt1Chinese steel industry losses expanding
0blt1BaoSteel develops high surface fingerprint
0blt111 die in crane container accident near Chong
0blt1Jiangxi to restrict new steel projects in
0blt1FAW to launch light commercial vehicle in
0blt1Chinese steel industry does well in energy
 
 Indian News
0blt1Indian domestic prices to go down further by
0blt1JSW and Essar slash steel prices
0blt1Monday Market Monitor - India (WEEK 45) -
0blt1Steel majors give mixed reaction on export
0blt1JSW Steel starts work on West Bengal plant
0blt1USW and Essar Algoma differ on layoff strateg
0blt1Recession reports - Dr Manmohan Singh take on
0blt1Steel ministry turns down demand of NMDC iron
0blt1Essar Algoma COO responds to Steelworkers
0blt1INDSPI - SENSEX for steel prices in India
0blt1UGSL Q2 net down by 30% YoY
0blt1Directory of Forging Industry in India
0blt1IIL reports net loss of INR 267.40 million in
0blt1Welspun cuts steel plate output target - Repo
0blt1CAPEX cuts - Essar Shipping defers bulk
0blt1TATA Steel Kalinganagar plant to require
0blt1Master growth demands quality infrastructure
0blt1TATA Motors to review foreign fund raising pl
0blt1Macroeconomics indicators - Injecting
0blt1Directory of Construction Companies in India
0blt1India Cements to invest INR 160 crore for
0blt1Suzlon shelves tower manufacturing unit plan
0blt1Gangavaram port inauguration likely in Novemb
0blt1Private sector participation in small hydro
0blt1CAPEX cuts - M&M slashes INR 5000 crore CAPEX
0blt1Double delight for NOL at Lloyd List Asia
0blt1Power capacity addition in 11th Five Year
0blt1Jyoti Structures Q2 net sales up by 32.30% Yo
0blt1WB pollution board gives ultimatum to 31 indu
 
 International News
0blt1Tokyo Steel cuts scrap purchase prices by JPY
0blt1BlueScope wants uniform global carbon scheme
0blt1ArcelorMittal likely to announce more
0blt1Boeing machinists approve contract and return
0blt1TATA Corus opens two new state of the art fac
0blt1Recession Report - US economy contracts as
0blt1CMC net earnings for FY 2008 reported at USD
0blt1Usiminas Q3 results likely the best in 2008 -
0blt1Global steel unions to discuss emissions
0blt1Macroeconomics indicators - Shipping sector
0blt1In depth analysis of steel projects in India
0blt1Concord Steel declares lockout at Warren plan
0blt1TATA Corus opens office at Sofia in Bulgaria
0blt1Rebar prices in Jamaica fall by 30% on low de
0blt1Macroeconomics indicators - Korean shipping
0blt1Corus to pay nothing for steel cans
0blt1Konecranes acquires business of Provincial
0blt1Indian Steelmakers Directory 2008
0blt1Bond holders urge Kremikovtzi to remit loans
0blt1Hyundai Steel resumes operation of melt shop
0blt1Olympic Steel announces Q3 and 9 months
0blt1Japanese HRC exports to Korea for Q4 shipment
0blt1General Motors seeks USD 10 billion
0blt1Final plans for GBP 100 million Corus site
0blt1SSAB Q3 sales up by 29%
0blt1GMC announces Q3 and 9 months financial resul
0blt1Macroeconomics indicators - Komatsu cuts
0blt1ICTSI signs agreement to design and build
 
 Middle East News
0blt1Hadeed output in 9 months up by 16% YoY
0blt1Monday Market Monitor - MEA (WEEK 45)
0blt1Stroytransgaz to construct an extension of
0blt1Nakheel invites plans for 1 kilometre-high
0blt1Update on LISCO output in 9 months
0blt1Iranian oil minister urges India to commit to
0blt1Qatar Steel observes 30 successful years with
0blt1India and Iran pitch for two way investments
0blt1UAE investment in the domestic industrial
0blt1Uzbekistan on railway cooperation pact with I
0blt1GCC to spend UDS 120 billion on power
0blt1KESC to add 88MW extra power from November
 
 Russian News
0blt1Monday Market Monitor - CIS (WEEK 45) -
0blt1Ilyich reduces pig iron output
0blt1ArcelorMittal Kriviy Rih idle rolling mills
0blt1CAPEX cuts - Chelyabinsk Zinc to cut
0blt1Ukrainian parliament passes IMF legislation
0blt1Ferrexpo customers defer iron ore orders
0blt1Production pruning - ZAZ may cut auto output
0blt1Kazakhmys may cut 2009 copper output slightly
0blt1Recession reports - Mr Putin rules out
0blt1Gazprom and Enel agree to develop Russian ass
0blt1Power Machines posts USD 8.6 million net
0blt1Revenue of BDZ depends on Kremikovtzi
0blt1LUKoil posts 30.5% jump in RAS net profit for
0blt1Czech Republic seeks direct oil deliveries
0blt1Ukraine must liberalize gas prices in
0blt1RZD and Transmash Holding to reduce prices
 
 Special Steel News
0blt1Global stainless steel output seen down on
0blt1US DOC amends preliminary CVD on Chinese CWAS
0blt1African Rainbow to suspend ferrochrome
0blt1Directory of Electrical Steel Users in India
0blt1EU spares China, Taiwan and Korea on
0blt1Small scale nickel producers withdraw from
0blt1ASSDA announced date for stainless steel conf
0blt1Northland Stainless set to add 12 jobs
0blt1Mirabela says that Santa Rita nickel mine on
0blt1Allegheny Technologies layoffs to affect hund
 
 Raw Materials & Mining News
0blt1Recession reports - Cliffs sees recession to
0blt1Chinese mills default on iron ore pacts with
0blt1Rio Tinto chairman not to extend his tenure
0blt1Mount Gibson inks new iron ore pact with
0blt1BHPB bid for Rio - BHP sees no reason to add
0blt1Atlas sells first iron ore to Chinese steel m
0blt1Macroeconomics indicators - Vale CEO says
0blt1Russian to become new major iron suppler for
0blt1Vale inks pact for iron ore pallet plant in S
0blt1Peru orders army to help curb mining law viol
0blt1BHPB bid for Rio - EU clearance a real threat
0blt1POSCO war zone - Mr Oram renews opposition on
0blt1Iron ore stockpiles at Chinese major ports in
0blt1Coal supply agreement issue to be resolved
0blt1Chinese iron ore import from different
0blt1Gujarat NRE Coke net profit zooms to INR
0blt1Goan iron ore exports may slump further
0blt1China approves first cross provincial coalbed
0blt1Chinese coke export to different countries in
0blt1Chinese coking industry to make small profits
0blt1CIL plans 3 IPO in 3 years
0blt1China to provide policy support to overseas
0blt1TATA put forth argument for Sasol CTL technol
0blt1Walter Industries posts strong Q3 earnings
0blt1LKAB to build new main level in Kiruna
0blt1Wartsila to supply engines for 12 ore carrier
0blt1Polo Resources retains strong financial posit
0blt1Caution urged over Port Bonython development
0blt1Transnet coal volumes to increase in second h
0blt1USD 26 million approved for Thar coal project
0blt1FMG faces risk on iron ore shipments
0blt1Advanced Explorations focuses on iron nugget
0blt1Karara project update
0blt1Clean coal may need USD 15 billion investment
0blt1Glencore sees no difficulties in opening LCs
0blt1Metso Corporation announces Q3 result
0blt1Universal Coal releases final results
0blt1Advanced Explorations Inc reports additional
0blt1Japan imports 0.19 million tonnes of coke in
0blt1Altius reports iron ore drill intercepts in L
 
 
News Monday, 03 Nov, 2008
Indian domestic prices to go down further by 10% to 20% by 2008 end

Although domestic steel prices are continuously reducing since July 1st 2008, the comparison of fall when compared with reduction in global levels points to a scenario, where in during November and December Indian domestic prices are likely to crash further to maintain parity with global levels

Both Indian domestic and global price levels were at peak during early July, although Indian domestic levels, due to Indian government’s drive to tame inflation, were suppressed by about 10% as compared to global levels

Since than the fortunes of both global as well as Indian steel industry has changed to a large extant. Now almost every steel maker is facing daunting task of sales realization to cover their variable costs and failing to book orders.

The variation over last 4 months for Indian domestic steel prices is reflected in the indices developed by SteelGuru.com

Class1-Jul31-OctChange%Per day
ILPPI100006793-3207-32.1%-26
IFPPI100008551-1449-14.5%-12
INDSPI100007631-2369-23.7%-19

ILPPI – Indian Long Product Price Index
IFPPI – Indian Flat Product Price Index
INDSPI – Indian Steel Price Index

It is clearly reflected that long product prices in India have come under much more pressure so far and have reduced by about 32%, whereas flat product prices have gone down by only 15%.

Category wise changes are given below

Long products

Category1-Jul31-OctChange%Per day
PI – TMT100006743-3257-32.6%-26
PI – WRC100006988-3012-30.1%-24
PI – Angle100006425-3575-35.8%-29
PI – Channel100006607-3393-33.9%-28
PI – Joist100006525-3475-34.8%-28


Flat products

Category1-Jul31-OctChange%Per day
PI - Narrow Plates100008172-1828-18.3%-15
PI - Wide Plates100009047-953-9.5%-8
PI - Hot Rolled100008410-1590-15.9%-13
PI - Cold Rolled100008924-1076-10.8%-9
PI - Galvanized100008501-1499-15.0%-12


But, when we look at the global pricing trends, which are dominated by FOB levels at Black sea and China, it is seen that the price crash has been much more severe.

FOB Black Sea

Item4-Jul31-OctChange%Per day
Billets1200-1220250-285-943-77.9%-7.7
Rebars1260-1300390-430-870-68.0%-7.1
Wire rods1260-1300390-430-870-68.0%-7.1
HRC UKR1140-1170460-500-675-58.4%-5.5
HRC RUS1170-1220490-550-675-56.5%-5.5
Plates1250-1400780-880-495-37.4%-4.0
CRC UKR1160-1220540-570-635-53.4%-5.2
CRC RUS1250-1300570-600-690-54.1%-5.6


FOB China

Item4-Jul31-OctChange%Per day
Billet1100-1120420-450-675-60.8%-5.5
Rebar1090-1130470-500-625-56.3%-5.1
Wire rod1130-1150500-530-625-54.8%-5.1
HRC1000-1040450-500-545-53.4%-4.4
Plates1140-1150660-700-465-40.6%-3.8
CRC1130-1170580-610-555-48.3%-4.5
HDG1140-1190600-620-555-47.6%-4.5


Although these levels are still reducing week over week, even if we assume that they have reached the bottom, the price reduction on average has been as under
Long products – About 70%
Flat products – About 55%

During last 4 months, Indian rupee has weakened a lot and has affected the import parity pricing. The change in exchange rate for 1 USD to INR is as under

July beginningOctober end Change%
4350716%


Thus, to arrive at import parity pricing for Indian domestic prices, we need to take into account the suppressed levels of domestic prices in July beginning as well as exchange rate fluctuation.

CategoryGlobalDiscountExchangeNet DoneFurther
Long products70%10%16%44%26%18%
Flat products50%10%16%24%12%12%


Indian steel majors including Steel Authority of India Limited, JSW and Essar Steel have announced major price reductions for November, which in all likelihood would result in market prices across India in coming weeks.

To know the actual price levels on daily basis, please subscribe to service of www.steelprices-india.com

(Sourced from www.steelprices-india.com)

JSW and Essar slash steel prices

PTI reported that following the footsteps of Indian steel giant Steel Authority of India Limited, which announced steel price reduction on November 1st 2008, some other steel majors have also announced price cuts.

JSW Steel Ltd has cut the cost of its hot rolled steel coils by 15% to 17%. JSW Steel said in statement said that “We are reducing prices of HR Coil by INR 5,500 per tonne for November 2008 in line with prevailing international prices. This cut along with the 8% to 12% reduction in October 2008 amounts to an overall reduction by 25% to 30% as compared to peak prices in the domestic market.”

Essar Steel also slashed retail prices of steel by INR 4,000 per tonne to INR 5,000 per tonne. An Essar Steel spokesperson told PTI that "We have slashed prices by INR 4,000 per tonne to INR 5,000 per tonne in the retail segment.”

Monday Market Monitor - India (WEEK 45) - Slide continues

The slide continued unabated although it was more pronounced in flat but relatively stable in long. The FPPI fell by 354 points whereas LPPI remained stable. The overall steel index fell by 162 points:

Class24-Oct31-OctChange
ILPPI6781679312
IFPPI89068551-354
IDSPI77937631-162


ILPPI – Indian Long Product Price Index
IFPPI – Indian Flat Product Price Index
INDSPI – Indian Steel Price Index

The lowest values, after a continuous slide from August 5th 2008, are as under:

Class31-OctLowest
ILPPI27-Oct6672
IFPPI31-Oct8551
INDSPI31-Oct7631


ILPPI – Indian Long Product Price Index
IFPPI – Indian Flat Product Price Index
INDSPI – Indian Steel Price Index

Long products

Category24-Oct31-OctChange
PI - TMT65786743165
PI - WRC70926988-104
PI - Angle64826425-57
PI - Channel64826607125
PI - Joist67636525-238



Flat products

Category24-Oct31-OctChange
PI - Narrow Plates85048172-333
PI - Wide Plates92079047-160
PI - Hot Rolled88048410-394
PI - Cold Rolled93118924-388
PI - Galvanized88088501-307


To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html

Input materials
Domestic prices for all kinds of input material declined:
Melting scrap
80:20
HMS

LocationChange%
Chennai00.0%
Kandla-227-1.3%
Mumbai-500-3.4%
Mandi6994.0%
Kolkata8406.2%
Kanpur -420-3.0%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

Alang

ProductGradeSizeChange%
ShipsMeltingMixed-500-3.3%
Plate cuttingsRolling1”-300-1.7%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

Pencil ingot

LocationChange%
Mumbai15007.7%
Mandi8744.1%
Raipur 4202.3%
Kanpur -252-1.2%
Kolkata4202.3%
Ghaziabad10004.8%
Muzzafarnagar5092.5%
Ahmedabad-2000-9.8%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

Pig Iron

LocationChange%
Raipur 5003.0%
Kolkata00.0%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

Sponge iron

LocationChange%
Raipur -3000-25.0%
Kolkata8406.7%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

Long products
TMT
Fe 415
12mm

LocationChange%
Chennai-2600-6.7%
Mumbai595020.8%
Mandi-1560-4.3%
Kolkata10003.4%
Delhi 00.0%
Kanpur 4001.3%
Ahmedabad-1744-5.9%
Indore -500-1.6%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

WRC
SWR14
5.5/6

LocationChange%
Chennai-2622-7.9%
Raipur 4201.8%
Kolkata8403.1%
Delhi -175-0.6%
Kanpur 840.3%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

ANGL
GR A
65x6

LocationChange%
Chennai-1040-2.6%
Mumbai23808.0%
Mandi-1456-4.3%
Raipur 5201.9%
Kolkata5001.6%
Delhi -520-1.7%
Kanpur -300-1.0%
Ahmedabad-1744-5.9%
Indore-500-1.6%
Bangalore-2000-6.3%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

CHNL
GR A
75/100

LocationChange%
Chennai-2080-5.1%
Mumbai357011.5%
Mandi00.0%
Raipur 9203.3%
Kolkata10003.0%
Delhi -936-2.9%
Kanpur -400-1.3%
Ahmedabad-1326-4.4%
Indore-500-1.6%
Bangalore-3000-8.8%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

JSTI
GR A
250x125

LocationChange%
Chennai-2600-5.4%
Mumbai11903.6%
Mandi2080.6%
Raipur 5201.8%
Kolkata10002.9%
Delhi -1560-4.2%
Kanpur -1800-5.0%
Ahmedabad-2400-6.6%
Indore00.0%
Bangalore-3500-9.7%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

Prices are expected to go down further.

Flat products

HRC
Tube
2.5x1250

LocationChange%
Mumbai-1311-3.6%
Ludhiana -843-2.2%
Kolkata00.0%
Delhi -1748-4.3%
Ahmedabad-388-0.9%
Indore-1261-3.3%
Bangalore00.0%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

Patra

LocationChange%
Ludhiana -908-3.6%
Mandi7873.1%
Delhi -874-3.2%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

PLTS
GRA
8x1.5

LocationChange%
Chennai-2185-5.3%
Mumbai-1311-3.8%
Kolkata00.0%
Delhi 00.0%
Kanpur -672-1.7%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

PLTS
GRB
12-20x2.5

LocationChange%
Chennai-1311-2.9%
Mumbai-1748-4.0%
Raipur 00.0%
Kolkata-1261-3.3%
Delhi 00.0%
Kanpur 00.0%
Ahmedabad00.0%
Indore-1933-4.9%
Bangalore-1681-4.1%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

CR
DSK
0.63x1000

LocationChange%
Chennai-1311-2.9%
Mumbai-2521-5.8%
Pune-2622-6.4%
Kolkata00.0%
Delhi -874-2.0%
Kanpur 00.0%
Ahmedabad00.0%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

GC
100Gms
0.4

LocationChange%
Chennai-1748-3.3%
Mumbai-840-1.9%
Ludhiana -457-1.0%
Kolkata-3782-7.2%
Delhi -874-2.0%
Kanpur 00.0%
Bangalore-840-1.8%


Change on October 31st is with respect to prices on October 24th
Change is in INR per tonne

If you want to know the prevailing prices and changes across the week on daily basis, please subscribe to services of www.steelprices-india.com

Steel majors give mixed reaction on export duty cut on long products

ET reported that India Government's decision to cut export duty by 15% on long steel products, mainly used in the construction sector, got a mixed response from the steel industry.

While a section of steel producers feel the move would not help the industry much as it has come at a time when demand and prices of the alloy have nosedived in global market due to financial recession, others contend it saying it would open up avenues for foreign shipments.

Mr SK Roongta chairman of SAIL said that "The duty roll back would not have a substantial impact, as volume of exports of long products from India is minimal."

Nevertheless, he termed the move as a right one saying it would provide a little respite to the industry, which can think of exporting some quantities.

Mr PK Bishnoi CMD of RINL said that "It is a welcome move. We had made a request for this to the government keeping in mind the unprecedented situation in the world, which has also affected the Indian steel sector."

He however added that much more needs to be done by the government to give a fillip to the domestic steel industry, which is passing through toughest of the times due to slump in demand and falling prices.

Industry watchers however said that the duty roll back would to some extent benefit producers like SAIL, RINL and TATA Steel, which account for 30% of the total market in the organized sector.

JSW Steel starts work on West Bengal plant

JSW Steel Ltd has laid the foundation of an integrated steel unit at Salboni in West Bengal to produce 10 million tonnes of steel by 2020. The project on a free tax zone would entail an investment of INR 350 billion in three phases.

The inauguration of the project at Salboni, which is about four hours' drive from Kolkata in an economically backward district, was marked by a huge presence of cadres of the ruling communists in West Bengal. Mr B Bhattacharya chief minister of WB, Mr Ram Vilas Paswan union steel minister and Mr Nirupam Sen state industry minister were present on the occasion.

Mr Sajjan Jindal vice CMD of JSW Steel told reporters that "We would produce three million tonnes of steel by 2012 from the unit when it goes on stream, followed by 6 million tonne by 2015. We will reach our target of producing 10 million tonnes of steel by 2020."

JSW project faced no protest over land acquisition after the steel maker offered farmers jobs and shares in its unit JSW Bengal Steel. The company has acquired 4,500 acres of land for the plant. Mr Jindal said that "We are against forcible land acquisition from farmers. We started work with support of the villagers.”

JSW Steel owns 89% of the equity in the venture and remaining is held by the state government.

USW and Essar Algoma differ on layoff strategy

It is reported that Essar Steel Algoma and its largest union to agree on a strategy to avoid layoffs appear to have soured. Union leaders charge the steelmaker has gone too far in asking for permanent contract changes.

Mr Mike DaPrat president of United Steelworkers Local 2251 representing roughly two-thirds of Essar Steel Algoma's total work force told members that he is not willing to budge on a list of company requests. He said that those include what appear to be lasting changes to an income security plan that shores up employment insurance payments for those laid off.

Mr DaPrat said that "If they want to talk about getting help from us, we're there, but if they want to talk concessions permanent, we're not." He added that the union and the company were to have met Friday morning to take another look at what is on the table.

Mr DaPrat said that no 2251 members have been laid off and the company has given the union no information on when or how many workers, if any will be laid off.

In a move that might anger some steelworkers, Mr DaPrat told members he is prepared to do away with 12 hour shifts, which are allowed under the collective agreement and are seen by some workers as a way to make the plant's 24 hour schedule more palatable.

As per report, it has been three weeks since Essar slowed production in reaction to a drastic cut in orders precipitated by a global financial meltdown that still has world markets reeling. In the meantime, the company has removed outside contractors and slashed overtime for existing workers under a plan that has also included the idling of the recently refurbished No 6 blast furnace.

(Sourced from SooToday.com)

Recession reports - Dr Manmohan Singh take on crisis

Following is the text of the remarks by Dr Manmohan Singh PM of India at the ASEM Summit at Beijing

Dr Manmohan sing said that the international financial crisis has resulted from three failures:
1. A regulatory and supervisory failure in major developed countries
2. A failure in risk management in private financial institutions
3. A failure in market discipline mechanism

He said that “These are not my views but those of the distinguished MD of the IMF with which I agree. We must analyze objectively how and why these failures have occurred with such ferocity. This is necessary to put in place a new set of rules which will prevent reoccurrence of such failures.”

He said that “Sad truth is that in this age of globalization we have a global economy of sorts but it is not supported by a global polity to provide effective governance. He added that the resulting crisis of liquidity, accumulation of bad assets, shortage of capital and collapse of confidence threatens to spill over into the real economy by way of reduced demand for goods and services particularly exports, reduced access to trade and suppliers credits superimposed on other crises food and fuel price rises that have strained budgets and balance of payments leading to rising inflation and living costs in many developing countries.”

Dr Singh added that “The President of the World Bank has identified at least 30 developing countries whose balance of payments will experience a severe deterioration in the wake of this financial crisis. The immediate task is to de clog the credit markets the world over. Coordinated global action is essential to restore a measure of confidence in the credit markets. From the standpoint of developing countries, international financial institutions, particularly the IMF and World Bank need to put in place exogenous shock facilities to provide assistance to the affected countries more quickly and in larger amounts with less service conditionality and greater flexibility. Countries with strong foreign exchange positions could make additional resources available to the international financial institutions on appropriate terms to finance their operations.”

Dr Singh said that “As a counter cyclical device, increased infrastructure investments in developing countries, if backed by increased resources flows from multilateral financial institutions such as the IBRD and Regional Development Banks can act as a powerful stabilizer. The IMF should revisit the potentially powerful instrument of creating liquidity through fresh allocation of Special Drawing Rights in favour of multilateral development finance institutions.
The reform and reconstruction of the financial system has to be a collective international effort since borders no longer confine financial institutions or can keep out financial turmoil. Given the growth in cross-border investment, trade and banking in the last three decades, the world must ponder over the need for a global monitoring authority to promote global supervision and cooperation in the increasingly integrated world in which we live.”

In devising a reform agenda, one must bear the wise saying of John Maynard Keynes regarding the economically damaging role of excessive speculative activity that “Speculators may do no harm as bubbles on a steady stream of enterprise. But the position is serious when enterprise becomes the bubble on a whirlpool of speculation. When the capital development of a country becomes a byproduct of the activities of a casino, the job is likely to be ill-done"

He added that Clearly, there has been a massive failure of regulatory and supervisory powers. Speculators have had a free run for far too long a period. International institutions like the IMF have also not covered themselves with glory. There has been an unacceptable failure of effective multilateral supervision of major developed economies and in particular of what has been going on in their financial markets.”

He concluded that “India’s banking system is sound and well capitalized. It is not exposed to the type of assets which have given rise to this crisis. Our real economy will grow at the rate of 7% to 7.5% this year despite the global slowdown of export demand and capital inflows. We have injected fresh liquidity in the system. We realize that we cannot remain totally unaffected when the global economy and financial system are in deep trouble. Our stock markets and the exchange rate of the rupee are under pressure due to capital outflow of foreign institutional investors. Sooner or later, the real economy is bound to experience the pain. We are therefore sincere in our desire to cooperate and coordinate our actions with the world community to find effective and pragmatic solutions to the formidable challenges the world economy is now faced with.”

Steel ministry turns down demand of NMDC iron ore price roll back

PTI reported that Indian government has turned down the request of steel producers to persuade state run miner NMDC Ltd to roll back last month’s price hike on iron ore, saying it cannot intervene in the commercial decision of the PSU.

Steel ministry in response to the joint representation of companies like Isp