1. Art and Diseño

Fr i d ay 3 0 , J a nua r y 2015
News &
Report Analysis
Currency Market
Precious Metal
Base Metal
Energy Market
 Steel firms fear price war due to huge
import from Russia
 China absorbing rising supplies of cheap
iron ore
 Goa to approach Centre seeking changes
in MMDR Ordinance
 Sesa Sterlite Q3 consolidated PAT down
11% to Rs 1,588 crore
 POSCO reports 30% y-on-yr rise in Q4
operating profit
2
Friday 30, January 2015
Daily
MMR Landed Prices
London Metal Exchange : Thursday 29, January 2015
Pr. Sell
(1)
Morning Session
Buy
Sell * (2)
Afternoon Session
Buy
Sell
Kerb
Change
(2) - (1)
Value
Stk(tns)
change
$/ton
Rs/ton
Copper Grade A
Spot
5485.50
5390.00
5390.50
5433.00
5434.00
5433.00
-95.0
2,47,450 MMR LP
3,62,544
3-mth
5455.50
5368.00
5369.00
5404.00
5405.00
5395.00
-86.5
2775 14-D MA
3,74,508
PP (HCL)
4,47,324
Average
10-days - 5596.80
20-days - 5831.40
30-days - 6009.70
Tin High Grade
Spot
19450.00
19050.00
19075.00
19159.00
19160.00
19137.00
-375.0
11,860
--
--
3-mth
19450.00
19100.00
19125.00
19200.00
19200.00
19175.00
-325.0
-5
--
--
--
--
Average
10-days - 19384.50
20-days - 19473.80
30-days - 19398.70
--
Lead
Spot
1853.50
1826.50
1827.00
1834.00
1835.00
1846.00
-26.5
2,15,050 MMR LP
3-mth
1872.00
1842.00
1844.00
1848.00
1849.00
1860.00
-28.0
-25 14-D MA
1,27,723
PP (HZL)
1,38,400
Average
10-days - 1841.40
20-days - 1828.50
30-days - 1838.70
1,27,296
Zinc Special High Grade
Spot
2112.00
2078.00
2078.50
2084.00
2085.00
2082.00
-33.5
6,33,175 MMR LP
1,48,937
3-mth
2121.50
2086.00
2088.00
2091.00
2092.00
2090.00
-33.5
-3550 14-D MA
1,49,585
PP (HZL)
1,59,000
Average
10-days - 2097.60
20-days - 2110.60
30-days - 2122.50
Aluminium
Spot
1849.50
1822.00
1822.50
1810.00
1811.00
1808.00
-27.0
40,58,300 MMR LP
1,43,322
3-mth
1858.00
1831.00
1831.50
1822.00
1823.00
1819.00
-26.5
-10150 14-D MA
1,43,367
Average
10-days - 1832
20-days - 1802.40
30-days - 1820.70
PP (Nalco)
1,56,800
Aluminium Alloy
Spot
1840.00
1830.00
1840.00
NA
NA
NA
0.0
26,500
3-mth
1850.00
1840.00
1850.00
NA
NA
NA
0.0
0
Average
10-days - 1842
20-days - 1825.50
30-days - 1856.30
Nickel
Spot
14930.00
14700.00
14705.00
14794.00
14795.00
14846.00
-225.0
4,25,562
--
--
3-mth
14970.00
14750.00
14760.00
14849.00
14850.00
14900.00
-210.0
1836
--
--
--
-01-Jan
09-Jan
Average
10-days - 14588
20-days - 14770.30
30-days - 14966.80
Note: 1. MMR LP = MMR Landed Prices, excluding excise duty. 2. PP = Producer Prices ex-smelter, excl. excise
Copper
Aluminium
Minor Metals ($/LB)
Antimony
99.65%
9,100
Cadmium
99.80%
90.00
Cobalt HG Moly.oxide
99.80%
14.00
9.00
Tantalite
30% Ta2O5
81.00
Titanium Ferro-vana
Con. Ti02
550.00
24.90
Silicon Zinc
Lead
2,050
26-Jan
26-Jan
Week ended Avg of Steel Prices: 24/01/2015 (Incl. Excise duty)
Sponge Iron
Pig Iron
Ferro Alloys :
Mandi
26,900 HMS
31,400 CRP(LSLP)
Mumbai Mkt rates in kgs :
Mumbai
Kolkata
29,800
29,600
31,700
Ferro Moly 1000
Delhi
Chennai
Bhiwandi
30,000
28,100
MS Ingots
38,500
30,200
Ferro Silicon 83
Titanium
171
Indicative Domestic Market Rates (Rs./kg)
Mumbai
29-Jan
Prev
Virgin Metals
Copper Pat
Copper W/Bar
Delhi
29-Jan
Comex Copper (cents/lb)
Prev
Chennai
29-Jan
Prev
Jan'15
- Feb'15
- Mar'15
-
-430.0
-435.0
386.0
-
385.0
-
Alum Ingot
Zinc Slab
Lead Ingot
Tin Slab
Nickel (4x4)
Scrap
Copper Heavy
Copper Uten.
163.0
172.0
135.0
1,465.0
1,065.0
163.0
174.0
135.0
1,465.0
1,075.0
164.0
184.0
130.0
1,445.0
1,060.0
164.0
185.0
130.0
1,447.0
1,067.0
406.0
375.0
410.0
378.0
---
---
159.0
-
Copper Mixed
Brass Utensil
Brass Huny
Brass Sheet
Alum Utensil
-310.0
310.0
320.0
132.0
-312.0
310.0
320.0
132.0
371.0
--137.0
370.0
--137.0
-
159.0
-
Metal
Gold Std
Silver
Gold
Silver
Gold
Silver
- Buy
- Sell
- Buy
Rate
247.05
245.15
245.45
Change
-2.0
-1.8
-1.0
Kanpur
38,100
Durgapur
34,500
Comex Al (cents/lb)
Rate
-
Change
-
Precious Metals : Indicative Rates
Market
Mumbai
Mumbai
London
London
Comex
Comex
Unit
Rs./10g
Rs./kg
$/tr.oz.
$/tr.oz.
$/tr.oz.
$/tr.oz.
29-Jan
28,200
39,800
1,268.8
17.43
1,254.6
16.75
Prev
28,300
39,800
1,288.0
18.01
1,285.9
18.06
Forex: Jan 29, 2015 (Rs/Unit Currency)
USD
61.92
61.83
EURO
70.11
GBP
93.67
93.57
SGD
45.80
----AUD
48.19
YEN
0.5253
0.5245
SFR
67.55
70.04
45.72
48.15
67.43
Customs Notified Rates: Jan. 16, 2015 [Rs.(Imp/Exp)]: US$ 62.30/61.30;Pound Sterling 95.35/93.20;Euro 73.70/71.90
Daily
U.S. stocks closed higher on Thursday as
an upturn in oil prices and a rally in Apple and
Boeing shares helped offset some disappointing
earnings and lingering questions over U.S.
monetary policy. As a result, Asian shares edged
up on Friday even as continuing concerns about
3
Friday 30, January 2015
USD/INR - 29/01/15
61.40
61.48
61.56
61.64
61.72
61.80
61.88
The Federal Reserve painted a bullish view of
USD/INR Overnight VAR
Data releases today
17:00
16:00
15:00
14:00
13:00
12:00
11:00
10:00
major U.S. indexes surged almost 1 percent.
9:00
61.96
global growth tempered gains. On Thursday,
0.3489
Forecast
Previous
5.0%
the U.S. economy after its first policy meeting
USD Advance GDP q/q
3.0%
this week that analysts say puts it on course to
USD Chicago PMI
57.7
raise interest rates as early as June. There were
58.3
Source : Mecklai Financial
more signs of strength in the U.S. economy
gains in the greenback. The currency touched
on Thursday after data showed the number of
an intra-day high of 95.26 and closed at 95.01
Americans filing new claims for unemployment
on Thursday. While currencies from energy and
benefits tumbled last week to its lowest level in
resource producing countries, such as Canada
nearly 15 years. Investors will next be eyeing U.S.
and Australia, struggled under the weight of
fourth-quarter gross domestic product data due
falling energy prices, the dollar, yen and euro
out at 1330 GMT that may show a solid pace of
were locked in familiar ranges.
economic expansion as the Fed had described
in its policy statement on Wednesday.
The euro climbed as far as 1.0464 francs,
reaching its highest since the Swiss National
Among the economic data includes US
Bank abandoned its 1.20 per euro cap two
Unemployment Claims fell to 265,000 in the last
weeks ago. It last traded at 1.0450. The common
week from 308,000 in the prior week. Pending
currency held firm at $1.1323, pulling away from
Home Sales plunged by 3.7 percent in December
the trough of $1.1098. But it is still down more
as against a gain of 0.6 percent in November.
than six percent so far this month. Against the
Currency Market
yen, it drifted to 133.60, away from a 16-month
low of 130.16 set Monday. Later in the day,
Dollar-bloc currencies tended hefty losses
euro zone inflation could come in softer than
on Friday, as investors sent the Australian
expected after German consumer prices fell in
dollar to 5 1/2 year lows as they bet on the
January for the first time since the height of the
Australian central bank reducing interest rates
global financial crisis in 2009.
when it meets next week. The US Dollar Index
The Aussie dollar barely made any recovery
(DX) traded higher by 0.3 percent hovering
on Friday, after dropping nearly 2 percent to
close to more than 11-year highs against the
$0.7720 on Thursday, a low unseen since July
other major currencies on Thursday, after the
2009. The Aussie dollar last traded at $0.7775,
Federal Reserve signaled that interest rates
up 0.2 percent on the day but was still down 4.7
could start to rise around mid-year. However,
percent this month and was on course to post
mixed economic data from the nation restricted
the third straight months of losses. Debt futures
4
Friday 30, January 2015
Daily
6 mth
LIBOR
Major
Currencies
Today’s
Crosses
Spot
Cash
v/s INR
0.36
USD / INR
-
ATM Options (put/call)
0.15
Forward Rates v/s INR (Export/ Import)
February
March
April
July
October
January
61.83/ 84
61.77/ 79
62.14/ 17
62.53/ 56
62.97/ 01
64.07/ 11
65.15/ 19
66.11/ 15
-
-
-
0.00/0.47
0.00/0.71
0.00/0.87
0.00/1.32
0.00/1.64
0.00/1.92
EUR / USD
1.1322
70/ 02
69.93/ 96
70.37/ 40
70.84/ 87
71.35/ 39
72.68/ 72
74.04/ 07
75.29/ 32
0.14
USD / JPY(100)
118.00
52.39/ 40
52.34/ 36
52.67/ 70
53.03/ 06
53.42/ 45
54.42/ 46
55.43/ 48
56.38/ 43
0.68
GBP / USD
1.5067
93.15/ 18
93.06/ 10
93.63/ 74
94.19/ 26
94.82/ 71
96.42/ 95
98.01/ 01
99.45/ 92
-0.74
USD / CHF
0.9211
67.08/ 13
67.01/ 08
67.45/ 48
68.09/ 10
68.65/ 68
70.13/ 13
71.70/ 60
73.09/ 98
3.06
AUD / USD
0.7781
48.11/ 12
48.06/ 08
48.35/ 37
48.66/ 68
49.00/ 03
49.86/ 89
50.70/ 73
51.44/ 47
Source : Mecklai Financial
now imply a near 70 percent chance the Reserve
slide that saw silver lose as much as 7 percent.
Bank of Australia (RBA) will cut its 2.5 percent
But gold is still on track to post its biggest
cash rate at its policy meeting on Tuesday, Feb.
monthly gain in almost a year after a recent rally
3, up from less than 10 percent earlier this week.
fuelled by the European Central Bank's multi-
"The AUD's fall over the past 24 hours has
billion euro bond-buying program.
been nothing short of stunning," said Raiko
Despite the threat of U.S. monetary
Shareef, currency strategist at Bank of New
tightening, increased liquidity through the
Zealand.
ECB's stimulus should support gold going
The Indian Rupee depreciated by 0.7 percent
forward, said Victor Thianpiriya, analyst at
owing to month-end dollar demand from
Australia and New Zealand Banking Group. Spot
importers, mainly oil refiners. Also, appreciation
gold was up 0.3 percent at $1,260.08 an ounce
of the US dollar against other currencies
by 0229 GMT, after falling as low as $1,251.86
overseas acted as a negative factor.
on Thursday, its weakest since Jan. 15. Gold's
2.2-percent drop overnight was its steepest
Precious Metal
since mid-December. The precious metal has
Gold edged up on Friday after falling more
lost 2.6 percent so far this week. But it was still
than 2 percent to a two-week low overnight on
up 6.5 percent for January, on track for its largest
concerns over a looming increase in U.S. interest
monthly gain since February last year after
rates, with bullion still on track for its biggest
touching a five-month high of $1,306.20 last
weekly drop in two months. Other precious
week. Spot silver was little changed at $16.90 an
metals steadied after Thursday's broad-based
ounce after sliding overnight by the most since
September 2013. U.S. silver advanced 1 per
Market Highlights - Gold (% change)
Gold
Gold (Spot)
Gold
(Spot -Mumbai)
Comex Gold
MCX Gold
(Feb’15)
Unit
Last
Prev.
day
as on January 29, 2015
WoW MoM
YoY
cent after falling over 7 per cent. India overtook
China as the world's biggest gold consumer in
2014 as global physical demand fell, an industry
$/oz
1256.5
-2.17
-3.4
6.2
0.0
Rs/10
gms
27900.0
-0.18
0.1
4.5
-6.4
$/oz
1259.0
0.35
-2.6
6.2
-0.3
Rs /10
gms
27419.0
-1.22
-2.2
2.7
-7.1
report showed, forecasting that prices that have
declined for the last two years would bottom
Source: Angel Broking
out this year.
Daily
Base Metal
Base metals traded lower yesterday after the
Federal Reserve signaled it would stick to plans
for a rate hike this year, drawing back liquidity
that has underpinned metals. Also, expectation
of a stronger U.S. dollar boosted by good
economic data from the United States acted as
5
Friday 30, January 2015
tonne on Thursday. The price dropped about 14
percent last year. The initial 2015 plan was set at
about 200,000-250,000 tonnes and the delivery
would be in the first half of the year mostly, two
of the sources said. Those shipments would be
used to complete an ongoing program to build
copper stocks to 2 million tonnes by end-2015,
one of the sources said.
a negative factor. In the Indian markets, all the
base metals traded lower in line with weakness
Energy Market
in the international markets.
The benchmark industrial metal, Copper
prices declined by 0.6 percent yesterday and fell
to a new five-and-a-half-year low on Thursday,
brought down by a stronger dollar and investor
concerns that China's slowing economy would
hamper demand for the industrial metal. News
that top metals consumer China plans to cut
its economic growth target to the lowest in
Market Highlights - Crude Oil (% change)
as on January 29, 2015
Crude Oil
Unit
Last Prev.
day
WoW
Brent (Spot)
$/bbl
46.0
-1.0
1.1
-17.1 -58.4
Nymex Crude
(Mar ’ 15)
$/bbl
44.5
0.2
-3.8
-16.4 -54.3
ICE Brent Crude
(Mar’15)
$/bbl
49.1
1.4
1.3
-14.3 -54.3
MCX Crude
(Feb ’15)
Rs/bbl
2754.0
-0.6
-4.7
-18.3 -55.1
YoY
Source: Angel Broking
11 years at around 7 percent in 2015 also hurt
sentiment.
MoM
Oil prices dipped in early trading on Friday
As per the Angel Broking analyst note
following slight gains in the previous sessions,
suggest that copper prices to trade sideways as
and analysts said the outlook remained weak
news that China's stockpiler plans to buy about
with production remains higher and producers
200,000 tonnes of refined copper in 2015 from
reducing operating costs to adjust to lower
the international market will be supportive.
export revenues. Global oil prices firmed slightly
While on the other hand, investors will be
on Thursday but not before U.S. crude hit a near
cautious ahead of advance GDP data from
six-year low and benchmark Brent pared gains
the US China's stockpile plans to buy about
on data showing fresh additions to record-high
200,000 tonnes of refined copper in 2015 from
U.S. oil inventories. Benchmark Brent crude oil
the international market and may more than
futures opened Friday's trading with losses,
double the amount if global prices are low,
opening at $49.15 a barrel at 0100 GMT but
three industry sources said. The State Reserves
falling to $48.95 by 0200 GMT. U.S.
Bureau (SRB) has set a rare "flexible" buying
Inventories of U.S. crude were already
plan in 2015 after having bought more copper
at record highs for the week ended Jan. 23,
than it had planned in 2014 due to low prices,
according to government data issued on
the sources said, but declined to be named due
Wednesday. Last week's build alone was almost
to the sensitive nature of the issue. Copper hit a
9 million barrels, taking stockpiles to nearly 407
5-1/2-year low this week, trading at $5,408.5 a
million, the highest level since the government
Daily
began keeping such records in 1982.
Friday 30, January 2015
the sliding global levels. They say it is becoming
WTI futures were trading at $44.56 a barrel,
increasingly difficult for them to keep product
almost unchanged. Analysts said that the
prices at current levels, amid sluggish demand
market outlook remained weak as producers
and rising import from China and Russia.
were keeping output high and were adjusting
“If the cheaper imports from China and
to a lower price environment.
Russia continue unabated, it will cause
News Update &
Analysis
irreparable to damage to the Indian industry,
Steel firms fear price war due
to huge import from Russia
unless the government comes out with policy
initiatives to arrest this and to lower ore prices in
the domestic market,” said a spokesperson from
Essar Steel.
A 50 per cent depreciation in the Russian
Primary steel producers are mulling options
currency has boosted its export to India. “There
along with cutting capacity utilisation if iron
is a possibility of Russian steel entering India in
ore prices remain at the current high levels, say
a big way in the coming weeks. (Then), there is
industry officials.
going to be a huge price war,” said a Mumbai-
Companies also fear a price war, expecting
based trader.
huge import from Russia. Steel companies
Traders have been refraining from booking
have been asking central government-run
orders from China for a couple of months, as by
NMDC to lower its iron ore prices, in line with
the time the material lands here, prices fall.
6
Daily
China absorbing rising
supplies of cheap iron ore
Friday 30, January 2015
Goa to approach Centre
seeking changes in MMDR
Ordinance
The Goa government plans to approach
the Centre on the recently notified Mining and
Minerals Development and Regulation (MMDR)
Amendment Ordinance 2015.
While the Ordinance has paved the way
for mineral excavations after two years of no
activity, state officials say it is silent on the 20
million tonne of mineral output limit set by the
Supreme Court in April 2014. Besides, it also
China is soaking up in the huge increase in
mandates discharge of dumps at mine sites.
overseas supply of increasingly cheaper iron ore,
Production of 20 mt of iron ore annually will
bolstering the determination of major exporter
result in at least 80 mt of dumps, which will need
Fortescue Metals Group Ltd to keep shipments
a total ground area of 1600 hectares. Barring a
at full speed.
few cases where dumps are piled up upto 100
Since 2011, the biggest producers led by Vale
SA and Rio Tinto Group have embarked on $120
metres in height, ground area is required for
discharge of dumps.
billion of spending on new mines, expanding
“Since the MMDR Ordinance prevents
low-cost supplies in a bet that increased
discharge of dumps outside the mine site,
volumes would force out competitors and offset
miners would not be able to follow the usual
lower prices. Prices have plunged to the lowest
practice. If we take an estimated mine area
in more than five years as the slowdown in
of 8000 hectares, mine sites will be filled
China pares the outlook for sales in the world’s
with dumps in five years. This means mining
biggest user.
activities will come to an end in five years,” said
Fortescue, the world’s No. 4 iron ore exporter,
Haresh Melwani, chief executive officer of H L
continues to see strong demand from customers
Nathurmal & Co, a Goa-based iron ore miner
in China, Korea, Japan and India.“We have
and exporter.
absolutely no intention of reducing production,
Sesa Sterlite Q3 consolidated
PAT down 11% to Rs 1,588
crore
or cutting back at any of our mine sites,” Chief
Executive Officer Nev Power said onThursday on
a conference call.
With the rapid price fall, Fortescue could
boost margins by lowering output to 120 million
tonne a year, Goldman Sachs Group Inc said in
November. The Perth-based company sees fiscal
2015 production of 155-160 million tonne (mt).
Natural resources conglomerate Sesa Sterlite
reported a net profit of Rs 1587.50 crore for the
quarter ended December, down 15% from profit
of Rs 1868.29 crore during the same quarter last
year, hurt poor performance at its oil and gas
business.
7
Daily
Friday 30, January 2015
won ($578.64 million) on a parent basis for the
October to December quarter.
This was lower than analysts' estimates of
675 billion Korean won and the 488 billion won
operating profit in 2013, when it also suffered
from the stronger South Korean currency.
POSCO CEO Kwon Oh-joon plans to outline
the company's 2015 outlook and give more
details about its earnings on Feb. 5.
Sales at Anil Agarwal-led Sesa Sterlite
fell 1.5% to Rs 19128.21 crore. Analysts were
expecting a profit of Rs. 1404.70 crore on sales
of Rs. 19291.96 crore.
Sesa Sterlite's oil and gas business is
suffering due to the unexpected fall in oil prices
globally. Sesa Sterlite's profit also took a hit on
deferred tax payments. The company paid a tax
of Rs 477.64 crore compared with a refund of
Rs 138.54 crore last year. Sesa Sterlite's oil and
gas business reported a profit before tax of Rs
782.95 crore, down 69% compared with Rs
2513.99 crore posted in the same quarter last
year. However, the company's zinc and copper
business offset the fall to some extent.
POSCO reports 30% y-on-yr
rise in Q4 operating profit
South Korean steelmaker POSCO reported a
30 per cent year-on-year rise in its four-quarter
operating profit, slightly missing forecasts, as
the slowing economy of top consumer China
kept steel prices weak.
China's economy last year grew at its slowest
pace in almost quarter of a century, reducing
demand for the alloy used in the automobile,
shipbuilding, construction and home appliance
sectors. The slowdown is expected to continue
this year.
POSCO's operating profit was 632 billion
Nippon Steel takes $583 mn
charge on Brazilian unit
Nippon Steel & Sumitomo Metal Corp said
on Thursday it took a 68.6 billion yen ($583
million) charge in the April-December period
as a slump in oil prices was hurting profits at its
pipe affiliate in Brazil.
Japan's biggest steelmaker, which also
supplies steel pipes to oil and gas companies
globally, expects the drop in oil to have a
negative impact on its earnings for the next
business year starting in April, an executive said.
"We don't expect a major impact from lower
oil prices this business year but we may see a
negative effect on new orders and output of
8
Daily
steel pipes in the next business year,"
Executive Vice President Katsuhiko Ota told a
news conference on its earnings.
"If oil prices stay below $50, orders for pipes
will be held back. We need to cope with the
changes carefully," he said.
Friday 30, January 2015
Nippon Steel took the charge on Vallourec
& Sumitomo Tubos do Brasil (VSB), its joint
venture with France's Vallourec , which holds
a 56 percent stake. Nippon Steel owns 40.4
percent while Sumitomo Corp has 3.6 percent.
Ota said Nippon Steel was taking an
Global oil prices have tumbled almost 60
impairment loss equivalent to 80-90 percent
percent since June, forcing a number of oil and
of the book value of VSB at the time of its
gas companies to scale back capital spending
investment in 2007.
plans for 2015.
The joint venture, which can produce 600,000
United States Steel Corp said this month it
tonne of seamless pipes a year, is currently
would idle plants in Illinois and Indiana due to
operating at about a 60-70 percent utilisation
weak demand from the oil industry, resulting in
rate and has been making a loss, according to
the layoff of 545 people.
Nippon Steel.
9