ASIAN NEWS India quadruples iron ore export duty
The world’s third largest exporter of iron ore is to quadruple export duties on iron ore fines from 5% to 20%. Duty on higher grade lump ore will increase from 15% to 20%.
he move, announced as part of the Indian government’s budget for 2011-12 fiscal year, reflects rapidly increasing steel demand in the domestic market. The additional duty is not expected to significantly effect export
volumes while world prices are at current levels but will put pressure on exporters’ margins. World iron ore spot prices hit US$193/tonne in February but eased slightly in early March to around US$180/tonne. Second quarter iron ore contracts for steel makers are based
on an index related to spot market trend. Australian mining giant BHP Billiton is reported to have informed contract customers the second quarter cost for iron ore will increase to US$168/tonne FOB from US$155/tonne in January. Steel makers fear further increases for Quarter 3 if ore spot prices remain strong.
Stainless scrap exempted
In its budget India announced that stainless steel scrap will be exempted from basic customs duty and that BCD on ferro-nickel would reduce from 5% to 2.5%.
T Coking coal, a major input material for Basic Oxygen
steelmaking hit record highs following fears over supply continuity as a result of the Australian flood disaster. Prices eased slightly towards the end of February but contract prices for Quarter 1 2011 are reported to be more than 25% higher than in Quarter 4 2010. The Economic Times reports that general steel prices
in India have increased 30% in the last two months. India consumed around 60 million metric tonnes of steel in 2010 but infrastructure demand is expected to double that consumption by 2015. According to analysts state sponsored infrastructure products
are primarily generating long product demand in India while private sector demand remains relatively subdued.
from Indian import duty Sundram turns a profit in China
Sundram Fasteners high tensile manufacturing plant in Zhejiang Province, which opened in 2006, recorded profits for the first time in 2010.
he lack of quality stainless scrap in India has been seen as an inhibitor to the growth of the stainless steel industry - more than half of the stainless mills in India reportedly use imported scrap. Nickel and chromium,
both important and high cost inputs for stainless steel production, can also be recovered from stainless scrap. There are, as yet, unconfirmed reports that the European
Commission is set to announce a new anti-dumping investigation on stainless steel fastener imports. There are strong indications that in addition to anti-dumping investigations against Malaysia and the Philippines the Commission will instigate both anti-dumping and anti-subsidy investigations on stainless steel fasteners from India.
earlier when the plant’s exports were hit by the anti-dumping measures applied to China. Bharat Forge, India’s biggest automotive forging company,
is also reported to have recorded profits for the first time in four years from its joint venture with FAW Forging Company in Changchun, northern China. Sundram Fasteners reported that total sales for calendar
Quarter 4 2010 rose nearly 30% compared to same period 2009. Net quarterly profit rose 30.5% year on year to 280 million rupees (4.5m euros).
PSA announces expansion plans for India LPS reports Q4 sales and profit gains
Lakshmi Precision Screws Ltd announced sales for the quarter ended 31st December 2010 at 810 million
rupees (approx 13 million euros) – a 45% increase on the same quarter 2009. Net profit for the quarter was 15.7 million rupees (251,000 euros) compared with 3.9 million rupees same quarter 2009.
PSA Peugeot Citroen has said it plans to expand in India as part of a strategy to achieve half of its sales outside Europe by 2015. PSA described the European market in 2011 as challenging. It expects China’s car market to grow by 10%, South America by 4% and Russia by 15%.
30 Fastener + Fixing Magazine • Issue 68 March 2011
ccording to The Hindu the plant’s performance improved through consolidating its position with multinational corporations operating in China, including Caterpillar, Volvo and John Deere. Sales were 35% up on two years