Indian HR, CR, Sheet & Coil prices are set to move up by Rs 1000-1500 /MT w.e.f the 1st of April.
All major Steel manufacturers such as JSPL, JSW, Essar, Bhushan, Uttam Galva and Llyod Steel are expected to go for the price hike.
Industry experts attribute the expected hike to recent hike in excise duty and higher prices of raw materials.
2.5mm Hr Coil in Mumbai currently trades at Rs 38,500/MT (Basic price).
Going one step ahead of its neighbor Tamil Nadu, the Andhra Pradesh
Electricity Regulatory Commission (APERC) has raised industrial power
tariff from Rs 4.13 a unit last year to Rs 5 a unit effective April 1,
Power consumers across segments- domestic, low tension and
high tension industrial segments, in Andhra Pradesh are in for tariff hike from
The Andhra Pradesh Electricity Regulatory Commission (APERC)
today approved the new tariff order which levies higher rates starting from
domestic power consumers above 50 units a month where the tariff has been
raised from Rs 2.60 a unit last year to Rs 2.80 a unit.
Only those who consume less than 50 units a month have been
spared. This category will pay Rs 1.45 a unit.
For industrial consumers, the tariff has been hiked from Rs
4.13 a unit last year to Rs 5 a unit.
Corporate farmers and IT assesses have been levied charges
of Rs 2.50 a unit. The tariff for cottage industries too, depending upon the
sector such s poultry farms, agro-based activity, now face higher tariffs.
While the distribution companies had raised a total demand
of Rs 36,090 crore for 2012-2013, the regulator has allowed total revenue of Rs
34,343 crore. This includes the subsidy component of Rs 5,358 crore and Rs
28,985 crore for distribution companies from tariffs collected.
The increase in tariff goes against the promise made by the
late Y.S. Rajasekhara Reddy when he came back to power in 2009 that there would
be no tariff hikes for next five years.
The order mentions that Fuel Surcharge Adjustment (FSA) is applicable
to all categories.
Nine years after the state hiked power charges in 2003, only
to roll them back 15 months later, the Tamil Nadu Electricity Regulatory
Commission on Friday gave the go-ahead for a 37% hike in power tariff across
all segments, effective from April 1.
The tariff hike is expected to help the TNEB, which is in the red, break even
by mopping up additional revenue of 7,874 crore in 2012-13. Even as the
commission announced the hike, good tidings wafted in for the TNEB on the
energy generation front too. For the first time in more than two months, its
generation crossed 9,000MW on Friday, powered by an additional 1,644MW from
The cost of electricity has been increased from 65 paise per unit to Rs 1.10
for domestic consumers who use up to 100 units. The hike is highest – from 1.8
to 5.75 per unit – for domestic connections that use more than 500 units every
The commission has abolished the concept of minimum monthly charges and
introduced a monthly fixed charge, ranging from 10 to 20 for domestic
Despite the hike, rates in Tamil Nadu are the second lowest after Gujarat.
While most states revise charges annually, successive governments refused to do
the same and pushed TNEB into a debt trap.
Japan's annual coal import contract which is often used as
the yearly benchmark for Asia has been settled high between $115.20 – 115.25/MT for
the fiscal year beginning April 1.
The settlement price is often just a few dollars above
Australian coal spot prices, but this year the settlement price is more than $8/MT,
or more than 7%, above the Australian Newcastle coal index price.
Japan's higher settlement of prices has given a boost to the Australia's Newcastle & South African Coal prices. An April DES ARA cargo was bid at $95.00
and offered at $100.00, up by nearly $2/MT. And an April South African cargo was also
being offered at $104.50 i.e. up by $1/MT.
“Trading volumes are low for Structure in Raipur due to the closure of financial year. Prices are expected to rise by about Rs 500/MT in the coming week and we expect a decent demand in the beginning of next week. 40 Angle at Raipur is being quoted at Rs 37,200/MT (Basic price),” said a city based broker.
“Hyderabad Structure prices have increased by Rs 500/MT and is trading at Rs 40,000/MT (Basic prices) due to power price hike in Andhra Pradesh effective from the 1st of April. But as demand is sluggish at these levels, I expect prices to slip in the coming week,” remarked a trader from Hyderabad.
Market players report that markets are sort of unpredictable today and anticipate that Monday would show some direction.
“Raipur Billet prices have increased by Rs
400/MT to Rs 33,700/MT (Basic price) as demand for Billet from Andra
Pradesh looks good. Billet prices in Hyderabad have jumped by Rs 1,100 and is now
trading at Rs 36,600/MT,” said a Raipur based trader.
“We are anticipating a
further increase in Billet prices of Hyderabad by Rs 1,000/MT in
about a weeks time as there is a shortage of material. The hike in power prices
has accounted for rise in Billet prices by Rs 1,100/MT and Hyderabad is trading
at Rs 36,600/MT (Basic price),” said a Hyderabad based trader.
Rourkela also saw a
rise in Billet prices by Rs 800/MT and is trading at Rs 33,500/MT (Basic price)
while that of Durgapur is being quoted at Rs 38,200/MT by Rs 200/MT high from
previous trade. .
“Raipur power prices are expected to go up by 50 paise
per unit. On account of this, the Ingot trading prices in Raipur have increased
by Rs.200/MT and is offered at Rs 32,700/MT (Basic price, payment next day).
The prices in finished are expected to rise in the range of Rs. 800-1,000/MT
due to which the demand at these levels has increased,” said a Raipur
Electricity Regulatory Commission has increased power tariff by 37% across all
segments. The cost of electricity has been increased from 65 paise per unit to
Rs 1.10 for domestic consumers who use upto 100 units. Therefore, Ingot in Chennai is being offered at Rs. 42,500/MT (Basic
price), up by Rs 500/MT,” a city based trader reported
“Mandi Gobindgarh anticipates the power price hike to be declared
on the 4th or 5th of April because of which the trading prices
have shown an uptrend. Ingot at Mandi Govindgarh is trading at Rs
36,000-36,100/MT with an increase of Rs 200/MT (Basic price),” a trader
from Mandi Govindgarh remarked.
Spot iron ore prices in China remain firm. However, market
players do not see further increases in prices as slow demand growth in China
has made the steel mills cautious to procure larger quantities of Iron ore.
Indian fines Fe 63.5/63 stays at $151- 152/MT on Friday,
i.e. unchanged from the previous close.
“I expect $150/MT to be the near-term peak for iron ore
prices as there is not much support from steel prices. Steel mills have
plentiful iron ore inventories now and are taking a cautious attitude in buying”,
said an iron ore trader in Shanghai.
The most-traded October rebar contract on the Shanghai
Futures Exchange stood almost flat at
4,321 yuan ($690) a tonne by the midday close on Friday, up by mere 0.02
Domestic ferrous scrap market had shown some
signs of picking up, as prices move up by Rs 300-500/MT first time this week.
Bhavnagar, Asia's biggest ship breaking
yard and biggest supplier of scrap across India, opens the ferrous scrap
prices on Friday at Rs 26,500-26,600/MT i.e. up Rs 400-500/MT from previous
trade price. Prices of plate cutting also opened higher by Rs 500-1000/MT on
Suppliers of rolling plates scrap in
Bhavnagar have raised their prices sharply by upto Rs 1,400/MT due to high
labor cost. Scrap of 4 ANI plate traded at Rs 27,800/MT, 6 ANI at Rs 28,000/MT
and 12 ANI at Rs 29,200/MT. These plate scraps are useful to make 8mm to 12mm
Non ISI TMT.
HMS (80:20) was traded at Rs 31,600/MT in Mandi
Gobindgarh i.e. up slightly by Rs 100/MT from previous trade price. MS Ingot also traded higher at Rs. 35,700/MT++
“The hike in scrap prices is short lived. We
are facing labor problem here and due to its higher cost, we have also
raised our offers”, a trader based in Bhavnagar said.
Experts are of the view that the current account deficit forecast at 3.9% of GDP in FY13 is beyond the RBI's comfort level.
This, along with expectations of higher demand for dollar, sets the stage for rupee to weaken. The rupee can been around 55/USD levels by the end of 2012.