Industry Updates on 08.09.2012


INDUSTRY UPDATES
08 August, 2012
STEEL, METALS AND MINING
India aluminum export to rise 5pct – Vedanta

World Aluminium Market reported that India's aluminum exports could rise 5% in the current fiscal year to 325,000 tonnes despite a slowdown in global demand as falling prices have led rival global producers to cut production.

Declining aluminum prices have forced major players such as Alcoa and Norsk Hydro to cut output and have prompted China, the world's largest consumer of the metal and Japan to ramp up purchases.

Mr Mukesh Kumar president of Vedanta Aluminum Limited said that "Due to the sudden closure of some of the smelters in the USA, the export demand has slightly improved."

Vedanta Aluminum, a part of billionaire Mr Anil Agarwal controlled Vedanta Group produces about 40% of the South Asian nation's total output. India exported 310,000 tonnes of aluminum in 2011 to 2012.

Aluminum prices have fallen this year alongside other metals as the global economy has cooled. The benchmark 3 month LME aluminum contract on Friday, at USD 1,846.25 per tonne was down 22% from its year high in March.

Traders said that Indian aluminum exports to South Korea, Japan and China are currently priced at a premium of USD 223 per tonne to USD 230 per tonne above the LME benchmark, lower than the USD 240 to USD 260 premium from other countries.

Low costs and availability of better grades of inputs such as bauxite give Indian smelters an edge over other suppliers but bureaucratic and environmental delays have limited the availability of coal, a major fuel for aluminum production.

India produces around 1.6 million tonnes of aluminum and consumes about 1.3 million tonnes annually. Its domestic demand is poised to grow by 7 to 8 percent a year, led by its power transmission, construction and automobile sectors.
(Steel Guru)
Vedanta calls for India to restrict bauxite exports

Vedanta Aluminium has called on the government to restrict bauxite exports and allow more mines to ensure that India's domestic industry including Vedanta's own alumina refinery has sufficient supplies.

The company's refinery in Odisha has been operating at 70% of its capacity of one million tonnes of alumina production per year, because it cannot obtain its requirement of 10,000 tonnes of bauxite a day.

India, the world's fifth biggest bauxite producer has been limiting the issuance of bauxite leases mainly due to local protests over land acquisition. Eastern Odisha state has the largest reserve of the resource.

Vedanta Aluminium, part of London listed Vedanta Resources said that at this crucial junction, allowing bauxite exports at the cost of domestic industry by some of the state governments, when the domestic aluminium industry is suffering for want of bauxite, cannot be justified in the national interest.

The federal government should also make efforts to open new bauxite mines in eastern Odisha state and southern Andhra Pradesh which account for 2.5 billion tonnes of reserves.
(Steel Guru)
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COAL
Have begun production from coal blocks : Reliace power ti inter Ministerial Group.
On day two of captive coal mines review by an inter-ministerial group (IMG), Reliance Power today said it has begun production ahead of schedule from its blocks Moher and Moher-Amlohri extension in Madhya Pradesh.