Market Flash: iSHARES MSCI Indonesia Investable Market Index Fund (EIDO:US) PRICE: 28.530 USD Down -0.360 (-1.246%) >>> BI: Rupiah Melemah Akibat Kondisi Eropa >>> Pertemuan FED pertimbangkan langkah baru dorong ekonomi >>> KIJA akan Terbitkan MEN Valas USD150 Juta >>> PT Indika Energy Perusahaan Teladan Dunia 2011 >>> Govt Promises Revision of Cost Recovery Regulation >>> BPMigas Demands PGN to Pay US$6 per MMBTU >>> Jababeka to Raise US$150 Million from Debt Markets >>> SCG Chemicals buys Chandra Asri >>> Solusi Tunas eyes Rp380 bio IPO >>> SMR Utama scouts Rp300 bio IPO >>> Alam Sutera picks two bond arrangers >>> ASII Tetap Rajai Penjualan Mobil Agustus 2011 >>> Perusahaan Thailand kuasai Saham TPIA senilai Rp 3,76 Triliun >>> Agis Main ke Tambang, Sahamnya Masuk Dalam Pengawasan >>> ACES Mendekati The Northern Agar Mau Kurangi Kepemilikan >>> IHSG masih harus berjuang terus bertahan diatas MA200 >>> Melirik Peluang Akumulasi di Saham Perbankan >>> Analisa Saham BUMI: Kuat Bertahan & Berpeluang Kembali Uptrend >>> Analisa Saham JSMR: Bertahan Di Support, What Next? >>> INDF Tertahan Di Area Support Kuat, Berpeluang Rebound >>> ASII Break Minor Support, Sell on Strength >>> ADRO Membentuk Descending Wedges, Berpeluang Rebound Terbatas >>> Wall Street ends flat as early gains evaporate >>> Fed begins policy meeting, tiptoes toward easing >>> Fed meeting to help decide on long-term Treasuries >>> Greece Makes 'Good Progress' in Reform Talks: EC >>> China worried Europe debt crisis will hit trade >>> China could roll out 4.65tr yuan stimulus package >>> IMF sees Mideast stagnation >>> NYMEX-Crude ends higher at Oct contract expiry >>> Asian Crude Palm Oil Up On Technical Buying, Soyoil >>> Foreign net Sell - 61.785.746

Kamis, 06 Januari 2011

Live Mint India: More steel price hikes expected

JSW Steel Ltd and Steel Authority of India Ltd hiked prices between 3% and 5%, Reuters reported on Monday. It’s not hard to guess the reason. Prices of iron ore, a key ingredient, have been gaining steadily since July, squeezing steel producer margins. Floods in Australia have now added to the woes. Prices of spot Chinese iron ore (with 62% iron content) rose some 20% in the quarter ended December as demand eased in developed markets and India banned exports, adding further pressure to the margins of steel makers.

Spot prices of coking coal, the second key ingredient, have jumped 10% to $256 (Rs11,445 today) a tonne over the past month as monsoon rains in Queensland, the heart of Australia’s coal production territory, disrupted mining and transport. Australia accounts for two-thirds of world coking coal exports and the flood-hit region for 40% of that country’s output. So roughly a quarter of the world coking output is shut down. There is also uncertainty on resumption of supply. Once business is back to normal, the situation should improve.

Indian steel makers are heavily dependent on foreign coal. According to estimates from Gujarat NRE Coke Ltd, at least 60% of local coking coal demand is met through imports; of this, 85% comes from Australia.
To be sure, steel manufacturers tie-up coal supply through quarterly contracts and the rise in spot prices may not have an immediate effect. However, traders and analysts estimate that contract prices could rise up to $300 a tonne for the June quarter compared with the $225 for the three months ending March.

For the September 2010 quarter, raw material costs for the top 10 local steel makers rose to 45% of net sales, compared with 42% a year ago. With miners holding pricing power, this ratio is likely to increase over the next couple of quarters.

While some steel makers such as Tata Steel Ltd will be less affected as they have captive coking coal supply, others have no option but to import. Expect more price increases on the way in the near term.
Posted by Saham Pilihan at 05.53

Tidak ada komentar:

Posting Komentar

Langganan: Posting Komentar (Atom)