Immediate action to unite and advance bravely
Indian economic news is agog with sob story of INR having collapsed
by 10% since May. Each day brings forth new lows and equally damning
Indian Current account deficit. As the government grapples with
catastrophic situation analyst churn out deluge of theories about the
impact on trade and economy.
If Uttrakhand is reeling under natural disaster, Indian economy has been
undergoing agony of plummeting economic indicators and debt burden.
Rubbing salt to injury INR has plunged on rumblings QE3 roll back in
USA. Greenback has dumped most of the currencies in emerging market.
To some extent it has aroused hopes of the domestic steel mills about
import insulation in domestic market and enhanced export
competitiveness.
If import offers of HRC at USD 550 per tonne fails to arouse interest in
domestic buyers there certainly is a case for the mills to capitalize.
However at the current domestic price level the parity is yet critically
poised before the gates are closed.
However the moot question remains of demand which shows no sign of
fanning. Export market is certainly an enticing proposition for Indian
mills. Europe and Middle East are the natural targets. Recently flat
market has shown some resistance with shortage in supply from Russian
mills. Chinese and Indians will compete neck to neck in these markets.
Indian mills have delivery time and freight advantage. Slothful economy
in Europe and approaching Ramadan will keep the business cool for the
time being.
| Class | 20-Jun | 26-Jun |
Change |
| ILPPI | 8718 | 8693 |
-25 |
| IFPPI | 8466 | 8449 |
-17 |
| INDSPI | 8588 | 8568 | -20 |
