Business Standard: Steel firms delay expansion plans on global credit crisis

At least three steel companies—JSW Steel, Jindal Stainless and Bhushan Steel—have decided to wait for the financial storm to pass before they take up their expansion plans.

“After we announced that the first-phase would have 6-MTof the total capacity of 10 MT, the markets tumbled. We then decided to go for the raw material in the first-phase.”

Business Standard: Steel prices may decline 10% by FY10

Steel prices are expected to dip by another 10 per cent by the first half of the next financial year on falling demand caused by temporary suspension of many infrastructure projects. This is contrary to the expectation that the price decline seen between July and September 2008 will reverse soon.

An oversupply in China and the CIS region has led to a billet-price drop from $1200 a tonne to $600.

Analysts estimate steel prices to bottom out to Rs 32,000 a tonne by the end of the current financial year.

Hindu Business Line: Cement sector may report subdued earnings in Q2

Despite a fall in coal prices, cement sector is expected to report another subdued earnings in the second quarter ended September 30, 2008 due to prolonged weakness in demand. The overall cement consumption grew by 6.5 per cent to 40.5 million tonnes in the quarter under review, almost 1.50 per cent lower than earlier expectations.

All-India average cement prices remained flat at Rs 235 a 50-kg bag quarter-on-quarter.

“Surplus in would rise four-fold to 40 million tonnes in FY10 from 10 million tonnes in FY09,”

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