Export duty on steel to up domestic supply

The government’s bid to rein in inflation by imposing export duty on steel products may result in an oversupply in the domestic market.

Export duty of 15 per cent on the primary products will increase the supply of hot rolled products in the domestic market.

The export disincentive for cold rolled and galvanized products, in which HR products are used as an intermediary, could aggravate the situation.

The steel producers may either absorb the duty and sell below cost in the international market and increase prices in the domestic market, or shun exports and resort to production cuts.

Essar Steel Holding CEO J Mehra said the move had serious implications. “Unless the government takes initiatives to facilitate additional capacities, such measures are counter-productive. The move will hinder the steel companies from increasing capacity, which is the need of the hour. The industry has been pointing this to the government for quite some time but without effect.”

Industry sources said steel prices in the international market were higher by 100-200 euros on an average. Domestic HR coil prices are ruling at around Rs 35,000 per tonne, ex-plant, as the companies have decided to hold prices to moderate inflation.

                                      Source:http://www.rediff.com/money/2008/apr/30duty.htm (Edited)

SPECIAL GRADES STEEL STRIP.

Besides the Grades which we have mentioned in our website, we are now feeding certain  special Grades of steel like EN362, EN353,etc. Certain items under case hardening steel are very difficult to procure, but we find ourselves self sufficient to offer them, but ofcourse an economical batch quantity and suitable lead time is required.The sizes and grades in Carbon Steel Strips and Flats are endless but we find ouselves at ease to supply the most of them.

For more information on our range of products, we invite you at our website: www.btstrips.com

Colour Coated H+T Steel Strips

Colour coated hardened tempered steel strip has a wide spread application.

Properties such as corrosion resistance,electrical conductivity & wear rsistance are required, these strips can be very successfully used.

We at BTC, do not keep ready stock of these strips. We import the material according to need & application of the client. These are tailor made strips and the mechanical & Electrical properties are taken care of, accordind to the specific requirement of an OEM

low alloyed steel strips

Low alloyed steel strips are one of the key raw material in the automobile sector. Grades like 16MnCr5,EN47,HC21 and many other numerous grades has its own demand and a very big market.

But unfortunately, in India not a singal integrated steel plant is manufacturing these special grades material. The cold rolling mills are procuring the basic HR material from overseas market. Since the demand of these grades of steel is negligible in comparison to Mild Steel, no one tries to venture in this segment in India. Whereas the value addition is much more better than that of mild steel.

This segment is somewhat hidden from the Indian Manufacturers, whereas in Germany there are companies which are manufacturing more than 20 Grades in Low Alloy Steel Strips in both HR & CRCA.

Hardened tempered steel strip

India has become one of the biggest exporters of Hardened Tempered Steel Strips in recent years.The monthly exports has crossed 2500 MT per month for these special Grade Strips.  

Apart from the ultra thin precision strips,i.e., thickness below .17mm, Indian Manufacturers are self sufficient in making all kinds of H+T Strips. From as narrow as 3mm to a maximum width of 520mm & from a thickness of .20mm to 4.00mm thick, India has established itself, on a solid  base, in the export of this particular product.

Iron ore prices set record

Iron ore market is hotting up in India. Following a rise in shipping freight rates and railway charges, iron ore prices (high grade) in the spot market have touched a record high of $175 a tonne.

Another reason for the price rise is increased demand from China. The rise in demand is due to port congestion in Brazil and Australia, the top two iron ore suppliers to China.

Federation of Indian Mineral Industries (FIMI) said the port congestion has led to increase in shipping freight rates.

The freight rate for Indian iron ore has touched $46 a tonne in October from $35 a tonne in September, up 28 per cent.

According to FIMI, ships have to wait for a longer period at the Brazilian and Australian ports. The port congestion at these countries has impacted the freight rates due to slow movement of ships.

Exporters are paying more surcharges to the Indian Railways since the last 30 days. The Indian Railways has increased the yard congestion surcharge on iron ore by 11 percentage points to 35 per cent.

This is the second hike in yard congestion surcharge this year. The busy season surcharge has also gone up to 7 per cent from 6 per cent.

Shipping freight prices and local railway prices are both included in the international spot iron ore price. Chinese steel mills, however, are still buying Indian iron ore because of the huge demand.

During November every year, the Chinese steel mills negotiate the iron ore prices for long term lease with Brazil, Australia and India. Prior to the leasing, the mills tend to increase their stocks through spot trading. Consequently, they are willing to pay a higher price before the negotiation begins.

During September, the iron ore price was $155 a tonne as against $140 a tonne in August. Last fiscal, China accounted for 84 per cent of India’s total iron ore exports of 92 million tonne.

Iron ore prices set record

Iron ore market is hotting up in India. Following a rise in shipping freight rates and railway charges, iron ore prices (high grade) in the spot market have touched a record high of $175 a tonne.

Another reason for the price rise is increased demand from China. The rise in demand is due to port congestion in Brazil and Australia, the top two iron ore suppliers to China.

Federation of Indian Mineral Industries (FIMI) said the port congestion has led to increase in shipping freight rates.

The freight rate for Indian iron ore has touched $46 a tonne in October from $35 a tonne in September, up 28 per cent.

According to FIMI, ships have to wait for a longer period at the Brazilian and Australian ports. The port congestion at these countries has impacted the freight rates due to slow movement of ships.

Exporters are paying more surcharges to the Indian Railways since the last 30 days. The Indian Railways has increased the yard congestion surcharge on iron ore by 11 percentage points to 35 per cent.

This is the second hike in yard congestion surcharge this year. The busy season surcharge has also gone up to 7 per cent from 6 per cent.

Shipping freight prices and local railway prices are both included in the international spot iron ore price. Chinese steel mills, however, are still buying Indian iron ore because of the huge demand.

During November every year, the Chinese steel mills negotiate the iron ore prices for long term lease with Brazil, Australia and India. Prior to the leasing, the mills tend to increase their stocks through spot trading. Consequently, they are willing to pay a higher price before the negotiation begins.

During September, the iron ore price was $155 a tonne as against $140 a tonne in August. Last fiscal, China accounted for 84 per cent of India’s total iron ore exports of 92 million tonne.