Rating agencies are not optimistic about the domestic operation of Tata Steel as its margins are under pressure because of low pricing power in the Indian market. Owing to slowdown in the economy and the resultant weakness in steel consumption, the pricing power of the company is restricted. Therefore, rating agencies like Fitch and Moody's assig
Tag: demand
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WSA reduces growth forecast for steel usage
According to a recent report of the World Steel Association (WSA), the growth of the global apparent steel usage (ASU) may decline to 2.9 percent in 2013. The association had earlier forecast the growth rate at 3.2 percent in its October 2012 release. Demand for steel may be subdued because of macroeconomic events like the Eurozone crisis, slowdown in the Chinese economy and U
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Chinese steel usage may grow 3.5% in 2013
According to a forecast by World Steel Association (WSA), consumption of steel in China may grow 3.5 per cent in 2013 to 668.8 mn t, following a 1.9 per cent increase in 2012. But the association expects steel demand growth in China to slow in 2014 to 2.5 per cent on the back of the local government's measures to control investment in an effort to re-balance the
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Steel firms prefer scrap over local sponge iron
Indian steel companies are said to be preferring to import cheap steel scrap from African and West Asian countries, whose prices are falling, instead of buying domestic sponge iron. In 2012-13, the country's import of steel scrap is estimated to have risen 25 per cent to 7.5 million tonne from the previous year, Metal Recycling Association of India said. Scrap prices declined 8 per cent to $390 a tonn
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Crude oil price falls on weak economic growth prospects
Amid signs of deterioration in the global macroeconomy, investors are reducing their long position in crude oil and this caused the Brent crude oil futures to decline below $100 a barrel. This is for the first time in nine months that the Brent crude oil futures slipped below $100
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Iron ore price expected to be weak
Some industry watchers expect the price of iron ore in the global market to remain weak in the coming months after rising during Jan-Mar 2013. Iron ore price is expected to be weak because of a combination of anticipated lower steel output and continuous supply growth from the major iron ore miners
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Tata Steel expects demand to expand 6-8 % in FY14
Agency reports indicate that Tata Steel expects the country's demand for steel to grow 6-8 per cent in 2013-14 assuming the economy to expand 6 per cent. The company expects major steel consuming sectors to grow well in the ongoing fiscal year, unlike last year when the growth was
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RINL to expand capacity by raising debt
AP Choudhary, Chairman and Managing Director of Rashtriya Ispat Nigam (RINL) said the firm plans to mop up Rs 400-500 crore through debt market in the near future. Speaking on the sidelines of a steel summit, he said the company plans to use the fund for expansion plans. But he did not disclose the timeline for the proposed fund raising plan
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Fall in global oil supply reduces inventory
According to a recent monthly report of the International Energy Agency (IEA), the fall in the crude oil supply at the global market has reduced inventories in some areas. Global supply of crude oil declined 120 kbpd in March 2013 because of a fall in OPEC output on the back of disruptions in Nigeria, Lib
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State-run OMCs may get notice from CCI
Under section 3 of the Competition Act, the Competition Commission of India (CCI) is probing an allegation that state-run oil marketing companies (OMCs) are indulging in cartelisation on fuel pricing. According to some media reports, these state-run OMCs may get notice from the panel on the allegation. The Petroleum and Natural Gas Regulatory Board earlie