Steel imports jump 69% in April-May to 1.5 MT Indias steel import jumped by 69 per cent to 1.

52 million tonnes in the first two months of the fiscal due to firm demand from sectors like automobile, consumer durables and manufacturing. Despite the slowdown in domestic conditions in some of the end-use markets, demand remained firm from sectors like motor vehicles, transport equipment, basic goods, consumer durables and manufacturing, Joint Plant Committee (JPC) said in a recent note to the Steel Ministry. Indias steel imports during the April-May period of the last fiscal were at 0.907 million tonnes.The total imports in 2011 stood at 8.2 million tonnes. Given the relatively slow growth in supply conditions, present import growth may well be due to the combined demand impetus provided by these sectors, JPC, a steel ministry body which maintains non-partisan data-bank of the industry, said. Indias production for sale of total finished steel grew by only 4.4 per cent during the period. Of the total imports during April-May this year, 1.329 million tonnes were of flat variety and the remaining are non-flat products. Flat steels are used in consumer durables and fast moving consumer goods, while nonflat find application in construction space. Attributing the jump in imports to the low base of the corresponding period last year as well, JPC said: The present domestic demand-supply mismatch reverses this year-onyear situation and leads to a heightened year-on-year rate of growth in imports. Price fluctuation is another critical factor influencing trends in imports with the relative strength in domestic prices vis-a-vis import prices, especially in an environment of fluctuating domestic currency, it added. China was the lead contributor comprising 30 per cent of the total imports during AprilMay followed by South Korea (19 per cent) and Japan (14 per cent). Ukraine and Belgium are the other two prominent contributors to the total steel imports figure for the period.
Source: Business Standard

Indian steel price index reflect down sentiments on June 25 The Indian Long Product Price Index ILPPI declined by 5 points on June 25, 2012 whereas India Flat Product Price Index IFPPI declined by 4 points. The overall Indian S Steel Price Index INDSPI went down by 5 points. Class 22-Jun 25-Jun Change % ILPPI IFPPI INDSPI 9616 9124 9382 9611 9120 9377 -5 -4 -5 -0.1% 0.0% -0.1%

ILPPI - Long Product Price Index IFPPI - Flat Product Price Index

INDSPI - Indian Steel Price Index L Long Products Category PI - TMT PI - WRC PI - Angle PI - Channel PI - Joist PI - Product Index F Flat Products Category PI - Narrow Plates PI - Wide Plates PI - Hot Rolled PI - Cold Rolled PI - Galvanized PI - Product Index These indices have base of 10,000 as on July 1st 2008
Source: Steel Guru

22-Jun 9901 9772 8947 9071 8320

25-Jun 9889 9772 8945 9069 8318

Change -12 0 -2 -2 -2

% -0.1% 0.0% 0.0% 0.0% 0.0%

22-Jun 8762 9036 8928 9767 9541

25-Jun 8738 9012 8928 9767 9550

Change -24 -24 0 0 9

% -0.3% -0.3% 0.0% 0.0% 0.1%

Indian iron ore mining mess - Government keen to restart mining in Karnataka Deccan Herald reported that eager to restart iron ore mining at the earliest in Karnataka, the Ministry of Mines has directed the Indian Bureau of Mines to expedite the process of surveying of iron ore mines in co ordination with different agencies, including the state government. Ministry of Mines Secretary Mr Vishwapati Trivedi, who chaired the review meeting of the IBM recently is learnt to have advised the organization to survey dump yard and spill over areas also to ensure that the mining companies restricted their activities only to leased areas. The ministry is under pressure from steel industry to take steps for resumption of iron ore mining in Karnataka to meet the industry demand. Iron ore mining in Karnataka was banned due to complaints of illegal mining and only state run NMDC is allowed to excavate ore and supply to steel plants. Earlier, the Central Empowered Committee appointed by the Supreme Court to probe illegal mining in Karnataka told the Ministry of Mines that resumption of mining operations would be possible only after Indian Bureau of Mines approved the mining leases. In a letter to the Mines Secretary, the CEC said following the Supreme Court

order, preparation and implementation of reclamation and rehabilitation (R&R) plans in respect of leases of 50 hectares and above in Bellary Chitradurga and Tumkur districts have been undertaken by the Karnataka government through the Indian Council of Forestry Research and Education. The R&R plans are being executed under the supervision of the Central Empowered Committee. As per the information provided to the Central Empowered Committee in respect of a large number of mining leases, the period of the approved plan/scheme has either expired or nearing expiry. Therefore, the mining operations in respect of such leases can be allowed to be re-started only after their mining plans are approved by the IBM, the Central Empowered Committeesaid in the letter. In Karnataka, the Central Empowered Committee had classified the mining leases in the three ore rich districts into three categories: Category A comprises 45 mines where there is no illegality. Category B comprises 72 leases, where the Central Empowered Committee found illegal mining with mining pits extending 10% beyond sanctioned areas and in areas where waste dumps are outside the lease. Category C comprises 49 leases with maximum violations of the Forest Conservation Act. As part of checking illegal mining, the IBM has also intensified the process of registration of miners, stockists, traders, exporters and end-users of mineral to prevent illegal mining activities. So far out of 5,931 lease holders of all types of minerals, registration number numbers have been allotted to 4,976 and remaining are under process.
Source: Steel Guru

BPSL hikes open offer target in Orissa Sponge Bhushan Power & Steel Ltd, along with Titanic Steel Industries Ltd and Olympian Finvest Ltd (formerly Olympian Steel Industries Ltd), termed Person Acting in Concert, has revised its open offer to shareholders of Orissa Sponge Iron & Steel Ltd. The intending acquirers have raised the size of the offer. In an announcement, the offer manager, Centrum Capital Ltd, said that the offer size was revised from 52 lakh to 79.3 lakh shares of Orissa Sponge, the target company. The earlier offer, in 2009, for 20 per cent of the target companys paid-up capital has now been raised to 26 per cent. This is the second revision of the open offer and is in connection with the original public announcement published on February 7, 2009. On July 26, 2010, Bhushan had made its first revision to the offer. According to the revised schedule, though the specified date remains unchanged (February 27, 2009), the offer reopens on June 28 and closes on July 17. The open offer would start on June 28 and closes on July 17.
Source: Economic Times

SAIL Sindri project caught up in hurdles Indian Express reported that state owned Steel Authority of India Ltds plans to set up a steel cum fertiliser complex at Sindri in Jharkhand has run into rough weather as the project is facing huge hurdles impeding its implementation. In course of a recent meeting convened by steel secretary Mr DRS Chaudhary to assess the progress made by SAIL in setting up its steel and allied plants in the Sindri complex of the erstwhile Fertiliser Corporation of India Ltd, the companys chairman Mr CS Verma said of the total land of 6,652 acres only 4,000 acres is usable. Of this, barely 2,000 acres can be utilised for steel plant, 700 acres for fertiliser plant, 300 acres for township and the balance for power plant. Mr Verma told Mr Chaudhary that FCIL would be allotted around 11% of equity against its land, usable and unusable assets depending upon the value of the same. He said the companies have set up a SPV-SAIL Sindri Projects Ltd. The Union Cabinet vetted the proposal in August 2011. SAIL has envisaged an investment of INR 35,000 crore of which its equity would be to the tune of INR 9,000 crore (considering a debt equity ratio of 70:30). However, the projects have not moved forward primarily due to FCILs inability to furnish the Draft Rehabilitation Scheme to the Board for Industrial and Financial Reconstruction. It is unlikely that FCIL would be able to provide its DRS in the next meeting of BIFR in July 5
Source: Indian Express

RINL approaches Steel Ministry to defer Rs 2,500 cr-IPO Rashtriya Ispat Nigam (RINL) has sought deferment of the government's Rs 2,500 crore share sale, saying the employee morale was low after the devastating fire at the company's Vizag plant that claimed 19 lives. The RINL management wrote a letter to the steel ministry on June 22 requesting deferring the initial public offering (IPO) as employees' morale has touched a low after the fire that killed 19 people, including 12 staffers. The initial public offer (IPO) of the state-owned steel maker was to hit the market in last week of July. The launch has already been deferred once by three weeks, following the suggestions of the merchant bankers in view of subdued market conditions. On June 13, a major explosion took place during the trial of a new oxygen control unit near the steel melting shop, resulting in the fire and the subsequent deaths. The two-day strike from June 27 called by the union to oppose the IPO has also been postponed following the deaths due to the explosion. At a meeting with Steel Ministry and Department of Disinvestment (DoD) officials last

week, the merchant bankers to the issue - UBS Securities India and Deutsche Equities (India) - advised the government to postpone the issue till September-October in the wake of the disaster, "Any attempt to launch it before September-October could backfire as the management is sure to face a lot of unpleasant questions during roadshows," a company source said quoting merchant bankers. RINL had submitted the draft red herring prospectus with the market regulator Sebi on May 18. The Cabinet Committee on Economic Affairs in January approved disinvestment of 10 per cent of government's stake in the firm. The company has to bring out its IPO before November this year as its Navratna status, accorded on November 16, 2010, is subject to its getting listed in two years (from the date of acquiring the status). The deferment of the IPO could also affect the government's Rs 30,000 crore disinvestment target for the current fiscal.
Source: Business Standard

Government cancels steel project proposed by kin of YSR The Andhra Pradesh government asked the AP Mineral Development Corporation (APMDC) to terminate the agreement entered into with Rakshana Steels Limited for supply of iron ore to the steel plant proposed by the firm. The move assumes political significance as Rakshana Steels is promoted by Anil Kumar, son-in-law of former chief minister YS Rajasekhara Reddy. However, Anil Kumar had earlier denied having any connections with the company. APMDC had signed an agreement with the company, which was short listed for setting up a joint venture steel project and an ore benefication plant at an investment of Rs 500 crore along with its consortium partners, Ispat Industries and Amoda Iron and Steels Private Limited in Khammam district. The government, in its orders issued on February 24, 2009, had directed APMDC to supply iron ore from the deposits available in Bayyaram, Garla and Nelakondapally in Khammam district and Guduru in the neighbouring Warangal district to the project apart from being a joint venture partner in the project. According to the orders, the state mining agency would get a 1.5 per cent equity stake in the project and 16 per cent premium on the cost of production of iron ore to be supplied to the project in addition to the statutory levies payable to the government. However, this agreement is effective only if APMDC is in a position to operate the mining leases in these areas. APMDC has approached the government for permission to cancel the agreement. The government, after obtaining legal opinion, has given a go-ahead to the corporation today, an official in the state mines ministry told Business Standard. The issue of the controversial Bayyaram iron ore mines had rocked the state Assembly even when YSR was the chief minister. Besides facilitating the above agreement, the

state government had also granted prospecting licence in an area of 55,000 acre in the same region to Rakshana Steels. However, Rosaish, who became the chief minster following the sudden demise of YSR in September 2009, had subsequently announced the cancellation of the earlier orders granting prospecting licence to Rakshana Steels. The firm had approached the courts against the governments decision. The government is considering the allocation of these low-grade iron ore deposits to Visakhapatnam Steel Plant, according to the officials.
Source: Business Standard