BLOWING HOT AND COLD OVER COILS
Article Abstract:
The floor price of imported hot-rolled coils was fixed at $302 or Rs13,000 per tonne by a notification of the Director General of Foreign Trade on December 11, 1998. This was in contrast to the earlier price of Rs7,310 or $170 per tonne. With a 35 percent duty, the landed cost of imported hot- rolled coils works out to Rs17,700 a tonne. This price is higher than the average international price of $302 per tonne. Producers of cold-rolled coils, whose main input is hot-rolled coils, are angry over the notification. This, they allege, will give Indian producers of hot-rolled coils an excuse to raise their prices to Rs17,700. Cold-rolled coil producers will thus be forced to pay an additional Rs5,150 crore in a year on a production of 11,000 million tonnes. Although raw material cost will increase, cold- rolled coil producers cannot pass it on to their users due to the prevailing recession. The producers of hot-rolled coils have already increased their prices by Rs2,000 per tonne since January 1999. The cold-rolled coil producers allege that financial institutions having an exposure of over Rs20,000 crore in steel producers like Essar, Ispat and Jindal Vijayanagar Steel have pressurised the Ministry to issue the notification. On the other hand some argue that the floor price is temporary and if the price of hot-rolled coils' price shoots up over the $302 per tonne mark, then the floor price loses its significance. (uh)(psr)
Comment:
The floor price of imported hot-rolled coils was fixed at $302 or Rs13,000 per tonne by a notification of the Director General of Foreign Trade on December 11, 1998.
Publication Name: BusinessWorld
Subject: Business, international
ISSN:
Year: 1999
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Infrastructure boom keeps Morgan's order book filled
Article Abstract:
Steel bar and rod manufacturer Morgan Construction Co. is a key player in the boom taking place in Asia's infrastructure market. Pres. and CEO Morgan Philip reveals that Southeast Asia alone accounts for more than 50% of the company's rolling mill sales. He predicts most of the company's contracts will continue to come from this region until 1997, considering its high level of construction activity and the steady growth of its steel industry. The company is planning to further intensify its participation in Asian markets by sending agents to every country in the region.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1995
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An enlightened steel industry faces the new century
Article Abstract:
The center of the international steel industry may shift to Asia after the 20th century. The shift to Asia will be spurred by the proliferation of cost-effective steel-making technology in Asian minimills, particularly those in India and China. However, the growth of high-technology minimill operations in Asia will depend on the availability of scrap metal and of adequate electricity.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1995
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