Readings: Steel price cuts, SBI lending rates, Iron ore exports
India’s leading steel producers have slashed prices of their products by up to Rs6,000 a tonne to ward off the threat of cheaper imports from countries like China and Ukraine amid a dip in demand.
The price cut comes even as Industry awaits a government decision on its demand for imposition of 15% duty on steel imports among other fiscal measures.
The international prices have corrected in the past two months by around 50% and the domestic prices have been reduced to counter the increasing imports.
Quite a change within 3 months: Readings: Steel prices, SWF Speculators, Chinese value
- Economic Times: SBI to cut lending rate by 50 basis points in two days
The country’s largest lender, State Bank of India, on Tuesday said that it will reduce its benchmark lending rate by at least 50 basis points in a day or two, a move that will make home, auto and personal loans cheaper.
The bank last increased its PLR by 100 basis points to 13.75 per cent on August 12. Besides, he said the deposits rates would also be reduced in the next couple of weeks.
The markets are indeed being juiced - CRR cuts, repo rate cuts, FM’s suggestions to banks and what not.
- Hindu Business Line: Iron ore exports down to a trickle
Iron ore exports from the country have been reduced to a trickle. Shipments from the country dropped 81 per cent in October compared with the same period a year ago on fall in demand from China and glut in the global markets.
International prices have plunged to $50 a tonne f.o.b from a high of $140-150/tonne.
. . . there were no takers for iron ore even at this low price couple with a lower freight charge. For the April-October period of the current fiscal, iron ore exports are projected to have declined to 39 mt from 48 mt during the same period a year ago. During 2007-08, about 120 mt of iron ore were exported, most of them on spot to China at over $100 a tonne.
Any guess on what will now happen to iron ore prices? And inflation?
PS: Bigger bubbles ’bout to burst: China & ME/GCC.
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