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In order to enhance the country’s inbound tourism sector, industry body FICCI (Federation of Indian Chambers of Commerce and Industry) has suggested a slew of measures. Foreign tourist arrival in 2009 was down by 3.3% to 5.11 million against 5.28 million in 2008 on the back of the Mumbai terror attack in November 2008 which caused a 15% decline in the number of inbound tourists.
It has suggested for a reduction in luxury
Read moreFICCI calls for reduction in luxury and service taxes on tourism
NMDC has intimated customers of 34-56% increase in iron ore prices across various grades effective April 1st, with iron ore fines prices increased by 34% to Rs2600/MT. Prices for iron ore fines were earlier increased by 16% in Jan 10. As per our calculations, the effective price increase for iron ore fines from Dec-09 is Rs927/MT, 55%.
NMDC talked about a potential re-working of its annual contracts, possibly in favor of quarterly contracts. However there is no news flow on the same so far. The above 34% price increase is ‘provisional’ as per the media report, with a final price increase likely to be communicated later (but would be effective from April 1.
Based on $200/MT coking coal and the latest NMDC iron ore prices, the total cost push for a non integrated steel mill, dependent
As per the data from Indian Energy Exchange, the short-term tariffs have increased 78% M-o-M to Rs5.77/unit in March 2010. The average merchant tariffs are at their highest level after almost six months (in August 2009, the average tariffs were Rs7.2/unit followed by a six months lull with prevailing average merchant tariff of ~Rs3.5/unit during September’09 – February’10).
The average tariffs in March’09 were more than Rs8/unit and hence, on a y-o-y basis; the March’10 average tariffs are 29% lower.
The most attention-grabbing aspect of the March PMI release was the surge in input prices to a new series high of 67.4, suggesting that companies are facing sizeable and mounting cost pressures. The survey also indicates that manufacturers are becoming more willing to pass on some of these increases in the form of higher output prices (54.6 from 52.1).
While the results were no doubt impacted by the one-off duty hikes announced in the budget, the RBI can’t afford to ignore the
Read moreIndia Manufacturing PMI and India Manufacturing PMI and trade
Contract prices cross USD 100/t to reach all-time highs; yearly contracts give way to quarterly contracts
Yesterday, Vale settled with five Japanese steel mills (Nippon Steel, JFE Steel, Sumitomo Metals, Kobe Steel and Nisshin Steel) with a ~90% increase in contract prices implying prices of USD 100 to 110/t depending upon grade. This is only for the Apr-Jun-10 quarterly and is broadly in line with the recent newsflow.
This surpasses the previous high of USD 90/t agreed in 2008. Indian spot iron ore prices are currently at USD 125/t FOB (63% grade).
The S&P CNX Nifty advanced 30.10 points or 0.57% to 5,312.10. The index touched a high and a low of 5,329.55 and 5,242.15, respectively.
The major gainers on the Nifty were Hindalco up 3.61%, Reliance Power up 3.29%, Ambuja Cement up 2.60%, Sterlite Industries up 2.32% and HDFC up 2.10%. The major losers on the index were Infosys down 1.97%, TCS down 1.40%, Tata Motors down 0.97%, ABB down 0.85% and Cipla down 0.81%.