Re: {LONGTERMINVESTORS} Raw materials - Input costs : Thread
RAJESH DESAI
Iron ore swaps prices firmed on Friday April 27 on the back of positive physical tender news after opening at lower levels, brokers told Metal Bulletin.
Forward curve (from four brokers): May $141.50/144 June $139/141 Q3 2012 $136.50/137.50 Q4 2012 $132/135 Q1 2013 $130/132 2013 $125/127.50 2014 $115/118 Swaps Iron ore swaps prices firmed on Friday April 27 on the back of positive physical tender news after opening at lower levels, brokers told Metal Bulletin.
--On Sat, Apr 28, 2012 at 11:38 AM, RAJESH DESAI <stock...@gmail.com> wrote:
Raw materials - Input costs :
I am starting this thread to track prices of inputs. Members are requested to share information.Low-carbon ferrochrome prices continue to rise, with producers unwilling to sell at lower levels over the past few weeks.
good news for producer companies & bad news for steel mfgr.cos.Prices for 0.10-percent material have risen to $2.20 to $2.25 per pound from $2.18 to $2.23 previously. Truckloads of business have been reported at the higher end of the range this past week.
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CA. Rajesh Desai
CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
China’s imports for homo-PP dropped 11.3% month over month and 6.5% year over year in March to reach 317,060 tons. The top homo-PP exporters to China in March were Saudi Arabia (68,978 tons), South Korea (64,725 tons), Taiwan (31,322 tons), the United Arab Emirates (29,635 tons) and Singapore (21,158 tons). Imports from Saudi Arabia, South Korea and India posted significant losses in March while imports from Taiwan and Singapore were higher month over month.
China’s March imports for HDPE and LDPE posted significant month over month losses while LLDPE imports posted only a modest month over month decrease. HDPE imports plunged 18.8% from February to reach 306,388 tons. The leading HDPE exporters to China in March were Saudi Arabia (55,370 tons), South Korea (50,322 tons), Iran (47,064 tons), the United Arab Emirates (35,431 tons) and Thailand (18,782 tons). Iran was the only country among the top five HDPE exporters to China to increase its exports of the product in March.
LDPE imports fell 12.7% month over month to reach 121,262 tons in April. The leading LDPE exporters in March were South Korea (16,125 tons), Saudi Arabia (13,995 tons), Malaysia (12,610 tons), Qatar (10,766 tons) and Russia (10,400 tons). In contrast to the double digit drops recorded in HDPE and LDPE imports, LLDPE imports lost only 2.5% from the previous month to reach 198,493 tons in March. The leading LLDPE exporters in March were Saudi Arabia (59,879 tons), Thailand (35,131 tons), Singapore (26,919 tons), the United States (21,953 tons) and South Korea (13,298 tons).
While PP and PE imports moved lower to China, imports of PS and PVC posted month over month increases. PS imports gained 12.9% month over month in March to reach 84,466 tons. China’s primary sources of import PS were Taiwan (28,789 tons), Hong Kong (16,948 tons), South Korea (15,603 tons), Singapore (8,167 tons) and Thailand (5,059 tons).
PVC imports were also up in March, rising 2.8% month over month to 93,240 tons. The United States (43,483 tons), Taiwan (26,973 tons) and Japan (13,847 tons) accounted for more 90% of China’s March imports between them, with the United States supplying nearly half of China’s total PVC imports.
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CA. Rajesh Desai
RAJESH DESAI
RAJESH DESAI
RAJESH DESAI
Cotton exports may be allowed due to pressure from Maharahtra Govt. Textile stocks to suffer due to this.
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CA. Rajesh Desai
RAJESH DESAI
Cotton tumbled to a 21-month low, trimming costs for clothing retailers including Gap Inc., after a U.S. government report showed global inventories will gain and data from Asia showed a further slowdown in industrial output.
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CA. Rajesh Desai
RAJESH DESAI
MOIL Ltd. (MOIL), India’s largest producer of manganese ore, increased prices after five straight quarterly declines on expectation demand for the steelmaking material will rebound as lowerinterest rates spur spending.
The state-run company, which supplies 40 percent of India’s manganese demand, raised prices by as much as 12 percent for the three months ending June, Chairman Kumar Jitendra Singh said today by phone. Manganese helps strengthen steel.
India’s steel demand is expected to expand 8 percent in the year ending March 31 from 5.5 percent the previous year, as declining interest rates fuel purchases of homes, automobiles, appliances and stimulates government spending. Steel Authority of India Ltd. (SAIL), which consumes almost one-quarter of MOIL’s production, plans to increase capacity by 55 percent to 21.4 million metric tons this year.
“We are seeing demand for manganese ore returning after more than a year,” Singh said. Prices had plummeted about 33 percent in the previous year, he said.
MOIL shares fell as much as 1.4 percent to 251.50 rupees and traded at 254.95 rupees as of 10:39 a.m. in Mumbai. The shares have gained 12.5 percent this year, compared with the 5.8 percent increase in the key Sensitive Index.
To contact the reporter on this story: Rajesh Kumar Singh in New Delhi atrsin...@bloomberg.net
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CA. Rajesh Desai
RAJESH DESAI
Global spot propylene costs move further south
Spot propylene costs continued to lose noticeable ground in global markets as energy and naphtha markets maintained their bearish trend during the course of the past week. Consecutive decreases in upstream costs combined with poor downstream demand led to expectations of further falls while causing an increasing number of buyers to step out from the market.
NYMEX crude futures contracts for June delivery declined more than $11/barrel since May started, with $1.81/barrel of this drop occurring during the past week. Similarly, ICE June Brent crude prices fell more than $8/barrel since the start of this month, while they lost around $1/barrel during last week. Facing downwards pressure from the persistently bearish energy complex, spot naphtha markets inevitably posted additional drops over the week. In Asia, spot values plummeted $40/ton on a CFR Japan basis week over week, while prices lost another $15/ton in Europe on CIF NWE basis. When compared to the end of April, the most recent figures represented a decrease of $90/ton in both regions.
In Europe, despite some production cutbacks, spot propylene prices plunged €120/ton on FD NWE basis during last week in tandem with relentless drops in naphtha feedstock costs and muted buying interest from the downstream PP market. According to market sources, naphtha supply loosened as the industry focused on lower cost feedstock, propane, and due to restarting refineries. Now that spot propylene prices fell by €130/ton since early May, June monomer contracts in the region are expected to settle lower than May levels.
In Asia, spot propylene offers decreased by $110/ton on FOB South Korea basis compared to the previous week, while the cumulative drop with respect to early May reached $150/ton. Seeing steep losses in the last few weeks, most buyers preferred to follow a “wait and see” policy in a bid to see a clearer market scene for the coming weeks.
In the US, spot polymer grade propylene prices recorded a sharp decrease of 9 cents/lb ($198/ton) on DLVD USG basis last week in the midst of a lack of healthy demand and retreating upstream costs. The recent levels represent a massive fall of 15.75 cents /lb ($347/ton) with respect to the end of April. In contrast to initial flat nominations for June, other contract announcements for polymer grade propylene emerged with drops between 3 cents/lb ($66/ton) to 10 cents/lb ($220/ton).
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CA. Rajesh Desai
RAJESH DESAI
SINGAPORE (ICIS)--Asia’s caustic soda prices are expected to remain robust in the near term, supported by restricted supply and persistently low by-product chlorine prices, industry sources said on Thursday.
Spot prices were last assessed by ICIS at $455-460/dry metric tonne (dmt) (€359.5-363.4/dmt) FOB (free on board) NE (northeast) Asia on 11 May, hitting their highest level for 2012, after rising by $40-45/dmt from $410-420/dmt FOB NE Asia on 16 March.
Several chlor-alkali producers in China are operating their plants at reduced rates to balance chlorine production in the midst of low chlorine prices and the dismal condition in the chlorine-derivatives market, leading to tight availability of caustic soda cargoes for the spot market.
“We have very limited cargo to export because of our low operating rate of around 50%,” a chlor-alkali producer in China said.
The average operating rate of caustic soda plants in China is estimated to be at around 60-70% at the moment, according to a trader based in China.
Chinese chlor-alkali producers are expected to maintain their productions at lower levels as there is no anticipated uptick in the chlorine-derivatives segment, market sources said.
Domestic chlorine prices in Shandong and Jiangsu were assessed at yuan (CNY) 50-150/tonne (CNY 7.91-23.7/tonne) EXWH (ex-warehouse) and CNY100-200/tonne EXWH, respectively, on 10 May, data from Chemease, an ICIS service in China, shows.
“Buying chlorine now is cheaper than producing it,” a China-based trader said.
Furthermore, demand from chlorine’s downstream markets such as polyvinyl chloride, methylene chloride, chloroform and epichlorohydrin are in a bearish state, the trader added.
As a result, chlor-alkali producers raised their caustic soda offers to fetch higher prices to protect their margins, market sources said.
“We cannot see any chance of caustic soda prices going down as chlorine price is still low and supply is limited because of low operating rates,” another trader said.
In addition to the reduced supply from China, caustic soda producers in Taiwan and Korea are unlikely to participate actively in the spot market in the near future as they are focusing on supplies to their respective domestic markets as well as contractual commitments. Thus, China is left as the main provider of spot parcels from northeast Asia for the time being, market sources said.
In Japan, producers are currently not in a position to offer spot materials amid ongoing and upcoming plant turnarounds at several chlor-alkali facilities that will last until mid-June.
“We may consider exporting on a spot basis after our maintenance in the second half of June,” a producer in Japan said.
Northeast Asia is a major exporter of caustic soda and has an estimated capacity of close to 39m dmt, which is almost half of the global capacity, industry sources said.
China is the biggest caustic soda producer globally, with a capacity that reached 32m dmt in 2011, according to data from Chemease.
Despite the bullish sentiment among suppliers, most buyers held the opinion that the high caustic soda prices are not sustainable as there is no firm fundamental that is supporting prices.
“Caustic soda demand is not great so I feel that the high prices are artificial,” a buyer in southeast Asiasaid.
There is no fundamental shift in demand so caustic soda prices will go down eventually when buyers start cutting back on their own production because they cannot afford to buy caustic at such high prices, another buyer in southeast Asia said.
“The final product prices are not going up at all so margin is being squeezed as the caustic soda buyers are unable to pass on the higher costs to their end-users,” the buyer added.
The main uses of caustic soda are in the manufacture of alumina, pulp and paper, soap and detergents, textiles as well as organic and inorganic chemical production. Other applications include water treatment, metal processing, mining and glass making.
($1 = €0.79, $1 = CNY6.32)
By: Feliana Widjaja
But its good news for mfgr.companies.On Tue, May 15, 2012 at 4:52 PM, kuku manmohan <manmoh...@gmail.com> wrote:
This means More bad news for investors in RIL
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Manmohan Tandan
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CA. Rajesh Desai
RAJESH DESAI
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CA. Rajesh Desai
RAJESH DESAI
| Oilseeds Likely To Plunge On Weak Global Cues | ||
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| 31-May-2012 09:27 |
The CBOT July Soybeans finished down 8 1/2 at 1378 1/4, 16 1/4 off the high and 14 up from the low. November Soybeans closed up 3 1/4 at 1296 3/4. This was 15 1/2 up from the low and 5 1/4 off the high. July Soymeal closed down 2.5 at 410.0. This was 5.3 up from the low and 5.0 off the high. July Soybean Oil finished down 0.45 at 49.72, 0.64 off the high and 0.32 up from the low. November soybeans spent much of the day lower on the session but saw late buying support on longer-term weather uncertainties to support the market late in the session. July soybeans saw a strong recovery off of the mid-session lows but still closed moderately lower on the day. Outside market forces were consider very negative and this helped to spark long liquidation selling in commodity markets; especially markets like soybeans where fund traders hold a hefty net long positions. European economic woes and a surge in the US dollar to the highest level since August 30th of 2010 has added to the risk off attitude. While traders see dry weather stress as an issue, talk of good rains this week in the Midwest and more rain for next week before a ridging pattern moves in has kept weather as a negative force. Confirmation that China is NOT planning another major stimulus program was also seen as a negative factor for the global economy. Weakness in the other grains and other commodity markets like crude oil and gold added to the negative tone. The weekly progress report showed a record fast planting pace with 89% of the crop planted compared to 76% last week and 48% last year.
The BMD CPO August contract currently quote at 3096, down MYR 15 per tonne after moving in the range of MYR 3100-3083 per tonne.
The NCDEX RSO June delivery ended the last day down by Rs 2.25 or 0.31% at Rs 734.80 after moving in the range of Rs 738.65-732.70 per 10 kg. Domestic Oilseeds complex is expected to trade lower on the back of weak global cues. Technically, the June RSO is likely to find support a
Chinese coal, iron ore defaults prompt mystery
Over the last two weeks, Chinese consumers of thermal coal and iron ore have been defaulting on their contracts, sending prices sharply down.
The reason behind the cancellations is a hotly debated topic in the physical commodities market.
Analysts and traders have put forward two radically different theories - with almost opposite implications to global commodities markets: either Chinese buyers do not need the raw materials because weak demand and high inventories - a bearish scenario - or they need the shipments, but they are defaulting to take advantage of falling prices and they plan to rebook at a lower costs - neutral to bullish.
The market has experienced both hypotheses at work: after the start of the global financial crisis of 2008, Chinese buyers defaulted en masse as demand vanished.
But in 2010, when fears about the euro zone sent prices down, Chinese customers defaulted on their shipments, only to rebook their cargoes shortly after at much lower prices.
Commodities traders tell me that probably both theories are at play.
Chinese commodities demand is lacklustre and inventories are indeed high. Electricity production, a proxy for thermal coal needs, rose only 0.7 per cent last month, a large slowdown from double digit figures in 2011 and earlier this year.
Moreover, thermal coal stockpiles at Chinese utilities rose last week to the equivalent of 26 days of consumption, up 62.5 per cent from 16 days in the same period of a year ago, according to the China Coal Transport and Distribution Association.
But the wave of defaults only started after iron ore and - particularly - thermal coal prices fell about 10 per cent, breaking key resistance levels.
The benchmark iron ore contract - 62 per cent iron content - fell last week in Singapore to $130.5 a tonne, the lowest since early November 2011.
Thermal coal prices in the Australian port of Newcastle, the benchmark for Asia, fell to $93.5 a tonne, the lowest since October 2010.
The price drop left some Chinese domestic traders, who usually do not hedge the price risk of coal and iron ore, suffering big losses. That is when the chain of deferrals and defaults gained pace, with a dozen cargoes left in the water.
Commodities traders say this week will be critical for sentiment: if Chinese buyers take the defaulted cargoes - at a lower price after negotiations.
The mood could improve if the wave of defaults is a reaction to the price fall rather than a genuine fall in demand.
But if price negotiations do not reach a quick conclusion and Chinese buyers continue to say that they do not need the material, the market could take another hit.
Moreover, the amount of distressed cargoes looking for an owner in the Asia-Pacific market is quite significant, raising the prospect of some traders executing fire-sales.
On Fri, May 18, 2012 at 12:03 PM, mahesh i. shah <equityanal...@gmail.com> wrote:
Thanks for the update..Rgds.On Fri, May 18, 2012 at 11:52 AM, RAJESH DESAI <stock...@gmail.com> wrote:
Hi Mahesh,
Taiwan’s Formosa Plastics Corp (FPC) is looking at cutting production of ethylene vinyl acetate (EVA) at its 240,000 tonne/year EVA/low density polyethylene
On Fri, May 18, 2012 at 11:44 AM, mahesh i. shah <equityanal...@gmail.com> wrote:
Any update on EVA (Ethylene vinyl acetate) prices and its outlook.....Rgds.
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CA. Rajesh Desai
Karishma Suvarna
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CA. Rajesh Desai
RAJESH DESAI
AM Insight: Steel demand unlikely to recover and steel scrap market hard to improveBEIJING (Asian Metal) 10 Aug 12 – Steel scrap prices decreased by around RMB400/t as steel prices continued to decline in July. Domestic steel scrap market has stayed at a low level with consolidation.
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CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
New Delhi: To control rising wheat prices, the country's second biggest commodity bourse NCDEX has hiked deposit money to 23 per cent from today onwards for traders keen to buy the grain from the exchanges' platform.The deposit money (margin) has been increased to 23 per cent from 13 per cent for wheat traders.
The margin is a minimum percentage of money that traders are required to deposit with the exchange to trade in the commodity future.
Following direction from the sector regulator FMC, the NCDEX said in a circular that it has decided to charge 10 per cent as special margin on buyers in all running and yet to be launched contracts of wheat with effect from today.
The deposit money has been increased to check speculators and price rise, commodity brokerage firm GRG Wealth Management analyst Chowda Reddy said. Wheat prices at the NCDEX have risen by 38 per cent since June on apprehension that wheat crop may get affected due to poor rains, especially in Punjab and Haryana, he said.
The September contract of wheat had hit its all time high at Rs 1,612 per quintal yesterday on the exchange platform. Currently, prices are ruling down at Rs 1,570 per quintal due to an increase in the deposit money.
Last year, the country harvested a record wheat production of 93.90 million tonnes. Due to bumper crop, the government has allowed export of the grain.
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CA. Rajesh Desai
RAJESH DESAI
A trader in India, with a regular trading volume of around 200tpm for silicon metal, told Asian Metal that their purchasing price for 5-5-3 from China increased slightly in early August to USD1,990/t CIF Nhava Sheva. The offers from China were generally stable in the recent days, but some suppliers lowered offers a bit. They purchase two containers of 5-5-3 at USD1,950/t CIF Nhava Sheva this week. The source added that they received offers for 3-3-0-3 and 2-2-0-2 from China at USD2,310/t and USD2,450/t CIF Nhava Sheva this week, and their customers have not placed orders yet.
The source noted that the car industry is weak now and the aluminum alloy industry is running slowly and the aluminum alloy prices keep decreasing, so the local demand for silicon metal is not strong and the market is inactive. The source thinks that it still takes a while for the local silicon metal market to pick up.
Putting the current prices for 5-5-3 and 4-4-1 at around INR119/kg (USD2,145/t) and INR124/kg (USD2,235/t) respectively, another trader in India with a regular trading volume of around 100tpm for silicon metal reported that their prices for silicon metal in the local market decrease further by around INR2/kg (USD36/t) this week on the thin trading.
The source added that the offers for silicon metal from China range widely now and they get the offers of 5-5-3 from USD1,940/t CIF Nhava Sheva to USD2,040/t CIF Nhava Sheva this week. They still have some inventory of silicon metal and do not intend to add stocks in a hurry as local silicon metal market is slow.
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CA. Rajesh Desai
RAJESH DESAI
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CA. Rajesh Desai
RAJESH DESAI
Natural gas futures have surged, supported by the gains in the global markets. The US Natural gas futures in last session advanced in New York to the highest level in two weeks. Gas prices have posted strong gains on forecast for cooler-than-normal weather across much of the US, which should raise gas-fired heating demand.
The contract for October delivery was trading at Rs 179.50/MMBTU, up by 1.93% or Rs 3.40 from its previous closing of Rs 176.10. The open interest of the contract stood at 27748 lots.
The contract for November delivery was trading at Rs 195.90/ MMBTU, up by 1.98% or Rs 3.80 from its previous closing of Rs 192.10. The open interest of the contract stood at 11320 lots on MCX.--
CA. Rajesh Desai
RAJESH DESAI
International veg oil markets drifted sharply lower, before stating a late week recovery in an action packed trading episode this week. Despite a shortened week with Indian markets closed for a national holiday on Tuesday and China celebrating week long National Day and Autumn festival, prices did register double digit losses ranging from 6-13% on wow basis. Earlier in the week, BMD CPO futures nose-dived to their lowest in more than 3 years on Tuesday, as slowing demand from Asia reflected by the poor export performance from the cargo surveyors SGS and Intertek activated panic selling. Progressing US soy harvest also raised fears that the upcoming USDA supply-demand report could show a marked rise in production estimates. Additionally, industry talks that CPO stocks could easily hit 2.5mn tons, with October shaping up to be a peak production month also dampened the sentiment. At the US front, fast paced harvest remained as the major dampener for the soy complex as it enhanced the crop prospects which were hitherto expected to be a extremely poor. The later half of the week witnessed high volatility amid a smart bounce back as short covering and on-dip buying emerged as prices (BMD) hit multi year low. Also, with the Malaysian plantation minister assuring to raise duty free export quota, overall sentiment pepped up. However, Indian markets were repeatedly hampered by a stronger rupee that fell below 52, after almost 7 months.
Oilseed and edible oil markets have been under persistent pressure in recent times amid a slew of bearish overtures from the global as well as domestic front. Concerns of rising Malaysian palm oil stock piles (to record high 2.5mn tons) as export falter, faster US soybean harvest progress with almost 50% completion rate, higher Indian soy crop prospects that would surpass 12.2mn tons and a sharply stronger Rs/USD keep the sentiment depressed. However, given the magnitude of the fall which is close to 20% within a span of 1 week, a technical bounce back cannot be ruled out. Already, Malaysian palm futures which made a low of MYR2,230 are now trading above MYR2,400 and US soy oil futures are holding the psychological support of 50cents/Lbs. Furthermore, the seasonal Kharif harvest pressure is seen to have been accommodated in the recent price fall.
From the demand side, festive demand for the next 1-2 months could offer downside threshold for the prices. However, a persistent rise in the Rs/USD might cap the upside potential in edible oils. The fact that a plethora of economic reforms are at the doorstep for clearance (though only a cabinet approval has been granted, awaiting the passing of the bill / legislation), rupee could show extend its strength in the short run. Soy oil prices find support at Rs593 and resistance at Rs625. Trend wise, prices are on a short term recovery mode, while medium term prospects are tied to the ability of the prices to hold on to the recent lows.
The reaction of Chinese markets, when trading reopens on October 8 after a three-day holiday, will play a big part in whether Malaysian palm oil futures can sustain a bounce from 3 year lows. Many industry experts remain skeptical over whether the vegetable oil can recover in the face of rising Malaysian inventories, swollen by soft export demand at a time when production is around its seasonal high. The trend of output outpacing exports will "continue through the fourth quarter, keeping inventory levels above 2mn tons is what the market mood reflects. Yet another crucial factor is the duty free export quota which the Malaysian government fixes on an annual basis. For 2012, it as fixed at 3.5mn tons and so far there hasn’t been any official clue as to the exhaustion of the quota. Therefore, the focus now is, in case the quota has been fully utilized, then there would be few takers for the fresh exports as new supplies flood the markets with peak oil yields. In this regard, the petition by plantations minister over increasing the free export quota becomes the key to determine the medium term fundamentals. Particularly, with Indonesia slashing its export taxes progressively on a mom basis, Malaysia needs to retaliate with some policy decision soon.
Broadly, edible oil markets are poised for a modest recovery (which is already underway), following consecutive weeks of dramatic decline. The ability of the recovery to turn into a gradual positive tone vests with the strength in the sentiment to hold on to the recent lows which are ‘valuable’ long term levels. However, considering the upcoming new crop supplies in China, US and India, notable recovery seems to be far fetched.
sOURCE - IIFL
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CA. Rajesh Desai
RAJESH DESAI
Zinc futures have extended their decline for the sixth straight day tailing weak global cues. There was demand concern from China and Japan after the Japanese government reduced the nation’s economic outlook for a third straight month and there was speculation that China will report lower growth numbers in the third quarter.
The contract for October delivery was trading at Rs 101.15/kg, down by 0.25% or Rs 0.25 from its previous closing of Rs 101.40/kg. The open interest of the contract stood at 12033 lots.
The contract for November delivery was trading at Rs 102.30/kg, down by 0.36% or Rs 0.35 from its previous closing of Rs 102.65/kg. The open interest of the contract stood at 1189 lots on MCX.
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CA. Rajesh Desai
Rajesh Desai
Copper Fundermental Report - Nov 27, 2012 : Ventura Securities
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CA. Rajesh Desai
Rajesh Desai
Maize prices in India rise on port congestion in Brazil
Maize prices in India have risen by around 12% in last one month as demand for Indian maize spurts in export market. In the domestic market, maize prices have risen to around Rs. 1,500 per quintal from Rs. 1,350 last month.
The demand for Indian maize is on rise in global markets as supply from Brazil has slowed down temporarily due to port congestion. “Prices in India are likely to remain high till Indian maize stays in demand on the international front”, said Mr. Raju Choksi, vice-president (commodities), Anil Nutrients Ltd.
Mr. Choksi added that deficit rainfall has impacted acreage and yield this year, which will affect supply. “Prices are likely to remain high, unless Rabi output offsets some of the loss in production in Kharif season to support domestic demand till next year,” he said.
According to the first advance estimates for 2012-13, Kharif maize area this season stood at 73.68 lakh hectares compared to 73.88 lakh hectares last year. Kharif maize production is pegged at 14.8 million tonnes, down eight per cent from the previous year. Maize is sown in both Kharif and Rabi seasons; with the Kharif season output comprising 75 per cent of the total production.
Oil: Crude oil prices have edged lower this morning on the back of Dollar strength. The outlook for oil demand remained weak amidst continued stalemate over the US fiscal cliff issue. Meanwhile, the US Energy Department yesterday reported that crude inventories had fallen 1 mn barrel last week lower than expectations of 2.3 mn barrels drawdown. The front-month Brent crude oil price is trading slightly lower around USD 110.02/bbl compared to yesterday's close of USD 110.36/bbl while WTI is currently at USD 89.57/bbl down from yesterday's close of USD 89.98/bbl. Technically, Brent is expected to trade ranged between USD 108.92-111.65/bbl while WTI is also expected to trade ranged between USD 88.65-90.58/bbl.
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CA. Rajesh Desai
Rajesh Desai
At the Multi Commodity Exchange, the January contract declined by Rs 6.40, or 1.45% to Rs 435.80 per 10 kg in 1399 lots.
On the Malaysia Derivatives Exchange the March cntract fell 0.6% to $ 789 a metric tonne.
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CA. Rajesh Desai
Rajesh Desai
Ferro- chrome makers curb output as demand wanes
· With demand for ferro chrome remaining sluggish over the past few months, affecting local rates, domestic manufacturers have resorted to regulating production of the stainless- steel commodity and holding on to their stocks. The rates, which went as high as INR78,000 a tonne during February- March, have now slipped to INR70,000. Odisha, the largest producer, accounts for more than 98 per cent of the country’s output. There is neither international nor local demand.
· Meanwhile, we cannot sell ferro chrome at the lower rate, as power cost has gone up, too. We can wait till the revival of the rates, and have meanwhile halted plant operation,” said an official of Nava Bharat Ventures Ltd, a ferro alloy maker. Power cost plays a significant role in ferro chrome production, accounting for more than 30 per cent of total cost. Many players who do not have acaptive power plant rely on government- supplied electricity to make the alloy mix.
· China, the largest buyer of Indian ferro chrome, has curbed export orders because of spurt in domestic supplies. Other buyers, such as Japan and South Korea, have reduced their orders, too, citing higher rates and sluggish demand for the finished product.--
CA. Rajesh Desai
Rajesh Desai
• Baltic sea freight index up as capesize rates rise
Oct 31 (Reuters) - The Baltic Exchange's main sea freight index, which gauges the cost of shipping commodities such as iron ore, grain, coal and fertiliser, rose on Thursday after falling for 10 straight days, propelled by a jump in capesize rates.
The overall index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk vessels, rose 20 points, or 1.35 percent, to 1,504 points.
• Kenya's main port gets Dutch grant to hasten cargo transfer
MOMBASA, Kenya, Oct 31 (Reuters) - Kenya's Mombasa port, east Africa's biggest trade gateway, has received a $27.5 million grant from the Netherlands to repair berths and improve facilities in a move to ease transfers and boost regional trade.
Kenya wants to retain its status as regional trading hub and has recently signed agreements with Uganda and Rwanda to cut red tape and hasten the movement of goods between Mombasa and its hinterland.
• Germany's Kiel canal reopens for most ships after collision
FRANKFURT, Oct 31 (Reuters) - Germany's Kiel canal linking the Baltic Sea with the North Sea reopened on Thursday for a majority of ships while emergency services sought to unload a freighter which collided with another on Monday.
"Traffic can go in both directions," the Central Command for Maritime Emergencies Germany based in Cuxhaven said in a press release, which said the site had been assessed and given clearance.
COAL
• Euro Coal-Weaker bids in physical market drag down futures
LONDON, Oct 31 (Reuters) - European physical coal prices were bid sharply lower on Thursday as traders appeared to be sufficiently covered for material while a public holiday in much of Europe on Friday drained the market of volume.
ARA coal, which typically originates in Colombia, Russia or the United States, was offered by sellers at $84.75 per tonne for December cargoes, down from Wednesday's settlement of $86.05.
IRON ORE
• China rebar hits 2-wk top, iron ore jumps 3 pct after China data
SINGAPORE, Nov 1 (Reuters) - Steel and iron ore futures in China began November higher on Friday, with iron ore climbing more than 3 percent, as strong data from the top consumer brightened the outlook for demand.
China's Purchasing Managers' Index rose to 51.4 in October from 51.1 in September, topping market expectations and marking the highest since April 2012, according to the country's National Bureau of Statistics. A separate reading by HSBC put the PMI at 50.9, a seven-month high and matching an initial estimate.
• Brazil infrastructure push to boost steel demand -Gerdau CEO
SAO PAULO, Oct 31 (Reuters) - Demand for steel products in Brazil will rise next year thanks to a series of infrastructure projects, including the sale of rights to operate airports, roads and railways, André Gerdau-Johannpeter, chief executive officer of Gerdau SA the nation's largest steelmaker, said on Thursday.
The company is optimistic about the outlook for the steel industry in North America for next year, Gerdau-Johannpeter told reporters at a conference call to discuss third-quarter earnings.
CA. Rajesh Desai