1. business and industrial
2. energy
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Fr i d ay 1 9 , D e ce m b e r 2 0 1 4
News &
Report Analysis
Currency Market
Precious Metal
Base Metal
Energy Market
 Al, Cu market in deficit during Jan-Oct
2014: WBMS
 Pb in surplus, Zn in deficit during Jan-Oct
2014: ILZSG
 Yale institute to honor Alcoa Chairman
 Cos can’t exit projects after coal block
allocation
 Uttam Value Steels bags National Energy
Conservation Award 2014
2
Friday 19, December 2014
Daily
MMR Landed Prices
London Metal Exchange : Thursday 18, December 2014
Pr. Sell
(1)
Morning Session
Buy
Sell * (2)
Afternoon Session
Buy
Sell
Kerb
Change
(2) - (1)
Value
Stk(tns)
change
$/ton
Rs/ton
Copper Grade A
Spot
6306.00
6349.50
6350.50
6373.00
6374.00
6362.00
44.5
1,70,900
MMR LP
3-mth
6270.00
6318.00
6318.50
6322.00
6323.00
6315.00
48.5
-1300
14-D MA
4,36,305
PP (HCL)
4,51,445
Average
10-days - 6448.30
20-days - 6513.40
30-days - 6581.80
4,33,961
Tin High Grade
Spot
19460.00
19175.00
19200.00
19309.00
19310.00
19082.00
-260.0
12,190
--
--
3-mth
19500.00
19200.00
19225.00
19324.00
19325.00
19100.00
-275.0
0
--
--
--
--
Average
10-days - 20161.50
20-days - 20236.80
30-days - 20113.50
Lead
Spot
1867.00
1853.50
1854.00
1850.00
1851.00
1848.50
-13.0
2,20,800
MMR LP
1,31,671
3-mth
1880.00
1867.00
1868.00
1866.00
1867.00
1865.00
-12.0
975
14-D MA
1,37,645
PP (HZL)
1,47,800
Average
10-days - 1963.50
20-days - 2001.50
30-days - 2007.90
Zinc Special High Grade
Spot
2114.00
2121.00
2121.50
2118.00
2119.00
2115.00
7.5
6,81,700
MMR LP
1,54,827
3-mth
2128.50
2129.00
2130.00
2129.00
2130.00
2126.00
1.5
-3575
14-D MA
1,56,629
PP (HZL)
1,63,400
Average
10-days - 2170.90
20-days - 2208.90
30-days - 2221.90
Aluminium
Spot
1863.50
1888.00
1888.50
1879.00
1880.00
1882.75
25.0
42,71,625
MMR LP
1,50,630
3-mth
1894.00
1916.50
1917.00
1906.00
1907.00
1911.00
23.0
9875
14-D MA
1,51,641
PP (Nalco)
1,62,400
Average
10-days - 1925.40
20-days - 1986.20
30-days - 2003.80
Aluminium Alloy
Spot
1980.00
1965.00
1975.00
NA
NA
NA
-5.0
26,560
3-mth
2000.00
1985.00
1995.00
NA
NA
NA
-5.0
-40
Average
10-days - 2007.50
20-days - 2009.80
30-days - 2015.70
Nickel
Spot
15430.00
15500.00
15505.00
15389.00
15390.00
15580.00
75.0
4,06,722
--
--
3-mth
15500.00
15500.00
15525.00
15459.00
15460.00
15650.00
25.0
-132
--
--
-Copper
Aluminium
-01-Dec
16-Dec
Zinc
Lead
15-Dec
15-Dec
Average
10-days - 16227
20-days - 16292
30-days - 16030.50
Note: 1. MMR LP = MMR Landed Prices, excluding excise duty. 2. PP = Producer Prices ex-smelter, excl. excise
Minor Metals ($/LB)
Antimony
99.65%
9,100
Cadmium
99.80%
90.00
Cobalt HG Moly.oxide
99.80%
14.00
9.00
Tantalite
30% Ta2O5
81.00
Titanium Ferro-vana
Con. Ti02
550.00
24.90
Silicon
2,050
Week ended Avg of Steel Prices: 13/12/2014 (Incl. Excise duty)
Sponge Iron
Pig Iron
Ferro Alloys :
Mandi
27,400 HMS
32,000 CRP(LSLP)
Mumbai Mkt rates in kgs :
Mumbai
Kolkata
30,100
29,200
32,300
Ferro Moly 1300
Delhi
Chennai
Bhiwandi
30,700
27,600 MS Ingots
38,900
29,400
Ferro Silicon 80
Titanium
170
Indicative Domestic Market Rates (Rs./kg)
Mumbai
18-Dec
Prev
Virgin Metals
Copper Pat
Copper W/Bar
Delhi
18-Dec
Comex Copper (cents/lb)
Chennai
18-Dec
Prev
Prev
-498.0
-497.0
431.0
-
431.0
-
-
Alum Ingot
Zinc Slab
Lead Ingot
Tin Slab
Nickel (4x4)
Scrap
Copper Heavy
Copper Uten.
174.0
180.0
130.0
1,495.0
1,130.0
174.0
182.0
133.0
1,513.0
1,138.0
178.0
187.0
128.0
1,505.0
1,150.0
178.0
187.0
128.0
1,505.0
1,150.0
462.0
424.0
461.0
424.0
---
---
167.0
-
Copper Mixed
Brass Utensil
Brass Huny
Brass Sheet
Alum Utensil
324.0
322.0
335.0
135.0
325.0
322.0
335.0
137.0
416.0
--141.0
416.0
--141.0
-
Nov'14
Dec'14
- Jan'15
-
Metal
Gold Std
Silver
Gold
Silver
Gold
Silver
Rate
287.25
286.70
286.00
Change
-0.5
-0.5
-0.6
Kanpur
38,600
Durgapur
34,900
Comex Al (cents/lb)
Rate
-
Change
-
Precious Metals : Indicative Rates
Market
Mumbai
Mumbai
London
London
Comex
Comex
Unit
Rs./10g
Rs./kg
$/tr.oz.
$/tr.oz.
$/tr.oz.
$/tr.oz.
18-Dec
27,200
36,635
1,199.0
16.08
1,198.0
15.89
Prev
27,095
36,405
1,195.8
15.95
1,194.3
15.89
Forex: Dec 18, 2014 (Rs/Unit Currency)
- Buy
- Sell
- Buy
USD
63.20
63.11
EURO
77.89
GBP
98.89
98.78
SGD
48.13
—
—
AUD
51.78
YEN
0.5331
0.5322
SFR
64.73
Sell
77.80
48.05
51.74
64.61
Customs Notified Rates: Nov 21, 2014 [Rs.(Imp/Exp)]: US$ 62.60/61.60;Pound Sterling 98.45/96.25;Euro 78.90/77.00
3
Friday 19, December 2014
Daily
Asian stocks rose, extending a global surge
fiscal and structural reforms. Japan's Nikkei JNIc1
in equities as the regional index headed for
climbed 2.0 percent to erase most of it's recent
its steepest two-day advance in 13 months.
losses, while Australia's main index romped
Crude oil pared a fourth weekly decline, the
ahead by 2.1 percent .AXJO. On Wall Street,
euro traded near a two-year low and wheat fell.
investors were still celebrating the Fed's pledge
Japanese stocks led higher at Asian markets
to be patient in raising rates. The Dow .DJI surged
on Friday, after Wall Street boasted its biggest
2.43 percent, while the S&P 500 .SPX gained 2.4
two-day advance since late 2011 amid relief the
percent and the Nasdaq IXIC 2.24 percent.
Federal Reserve was in no rush to start hiking
Currency Market
interest rates. The gains came even as oil stayed
under pressure, suggesting equity investors
USD/INR - 18/12/14
were beginning to see the positives in lower fuel
63.10
63.14
costs and increased consumer spending power.
63.18
63.22
The Bank of Japan held monetary policy steady
63.26
today, almost two months after unexpectedly
63.30
63.34
boosting stimulus amid a recession in Asia’s
17:00
16:00
15:00
14:00
13:00
12:00
11:00
9:00
10:00
63.38
second-largest economy. Earlier, the Bank of
Japan ended its last policy meeting of the year by
USD/INR Overnight VAR
recommitting to a massive stimulus campaign,
0.3363
Data releases today
Forecast
printing yen to buy significant amounts of
USD GfK German Cons.Climate
government bonds. It also offered a brighter
USD German PPI m/m
Previous
8.9
8.7
-0.2%
-0.2%
Source : Mecklai Financial
view of the economy in a sign of confidence
The U.S. dollar rose against major currencies
Japan can weather global market turbulence and
for a second straight session on Thursday in
the financial crisis in Russia.
BOJ Governor Haruhiko Kuroda will likely
the wake of the Federal Reserve's signals that it
repeat calls for firms to increase wages at his
could hike rates soon and looser monetary policy
post-meeting news conference, as well as urge
overseas. The US Dollar Index (DX) traded on a
Prime Minister Shinzo Abe to press ahead with
positive note and strengthened 0.2 percent in
6 mth
LIBOR
Major
Currencies
Today’s
Crosses
Spot
Cash
v/s INR
0.34
USD / INR
-
ATM Options (put/call)
0.15
Forward Rates v/s INR (Export/ Import)
December
January
February
May
August
November
63.01/ 02
62.95/ 96
63.13/ 15
63.53/ 56
63.88/ 92
64.98/ 02
66.02/ 06
67.01/ 05
-
-
-
0.00/0.60
0.00/0.79
0.00/0.95
0.00/1.36
0.00/1.71
0.00/2.02
EUR / USD USD /
JPY(100) GBP / USD
1.2279
77.37/ 38
77.30/ 31
77.52/ 55
78.04/ 08
78.49/ 53
79.91/ 95
81.31/ 33
82.63/ 65
0.15
USD / CHF AUD / USD
119.27
52.83/ 83
52.78/ 78
52.93/ 95
53.29/ 31
53.59/ 63
54.57/ 61
55.52/ 56
56.44/ 48
0.68
GBP / USD
1.5658
98.66/ 68
98.57/ 59
98.85/ 74
99.47/ 26
99.98/ 71
101.63/ 95
103.20/ 01
104.73/ 92
0.05
USD / CHF
0.9810
64.22/ 24
64.16/ 18
64.34/ 37
64.77/ 80
65.20/ 23
66.47/ 47
67.75/ 66
68.90/ 83
3.06
AUD / USD
0.8174
51.55/ 56
51.50/ 51
51.60/ 66
51.94/ 00
52.22/ 30
53.12/ 20
53.97/ 05
54.78/ 86
Source : Mecklai Financial
Friday 19, December 2014
Daily
the yesterday’s trading session on the back of
$1,197.57 an ounce at 11:46 a.m. in Singapore
speculation that US Federal Reserve policy makers
from $1,198.57 yesterday and is 2.1 percent
will remove their pledge to keep borrowing costs
lower this week, according to Bloomberg
low for a considerable period in their statement.
generic pricing. The metal fell to a two-week
However, upside in the DX was capped due to
low of $1,183.89 on Dec. 17 after the U.S. central
upbeat market sentiments which led to decline
bank dropped a pledge to hold rates low for a
in demand for the low yielding currency.
considerable time while promising to be patient.
The greenback hit a 28-month high against
Spot gold rebounded from a two-week low
the Swiss franc at 0.9847 franc after the Swiss
amid signs of rising physical demand for the
National Bank said it would impose an interest
metal. Swiss gold exports climbed to the highest
rate of -0.25 percent on some large deposits held
this year, and flows from the U.K. suggest Swiss
by investors in francs, as it seeks to discourage
refineries are working at full capacity to meet
buying of the currency as a safe haven. The euro
demand from Asia, UBS Group AG said in a note
hit its lowest level against the dollar since Dec. 8,
today. Trading of the Shanghai Gold Exchange’s
at $1.2266, while the dollar also hit a one-week
benchmark bullion spot contract advanced to
high against the Japanese yen of 119.30 yen a
the highest since April 2013.
day after the Fed altered a pledge to keep rates
Bullion metal yesterday dropped 0.6 percent
near zero for a "considerable time" in a show of
as the Federal Reserve signaled it would raise
confidence in the U.S. economy. The Indian Rupee
borrowing costs next year. While Fed Chair
saw its biggest gain in last seven months and
Janet Yellen said yesterday she doesn’t foresee
appreciated around 0.8 percent in yesterday’s
a rate increase for “at least the next couple of
trading session. The currency appreciated after
meetings,” she added there is “no pre-set time”
US Federal Reserve said that it would be patient
and “no meeting is off the table.”
in deciding when to increase its interest rates.
Gold retreated as a rally in global equities
Further, selling of dollars by the foreign banks
and the dollar damped demand for an
supported an upside in the currency.
alternative investment. While oil prices at five-
Precious Metal
year lows have raised concerns that inflation
may fall further below the Fed’s 2 percent target,
Gold headed for the first weekly decline in
Chair Janet Yellen said the impact will probably
three as the Federal Reserve moved closer to
be transitory. Data on Dec. 18 showed the
raising borrowing costs amid a slump in energy
number of Americans filing claims for jobless
prices. Bullion for immediate delivery traded at
benefits decreased last week to a six-week low,
Market Highlights - Gold (% change)
Gold
Gold (Spot)
Gold
(Spot -Mumbai)
Comex Gold
MCX Gold
(Feb’15)**
Unit
Last
Prev.
day
as on December 18, 2014
WoW MoM
YoY
supporting the case for higher borrowing costs.
“Gold prices are currently capped by a
stronger dollar and ongoing weak oil prices,”
$/oz
1197.7
0.80
-2.0
0.8
-1.6
Rs/10
gms
26850.0
-0.37
-0.4
4.7
-9.9
$/oz
1198.5
0.32
-1.9
0.1
-3.0
Rs /10
gms
26815.0
-0.52
-1.4
1.3
-7.1
James Steel, an analyst at HSBC Securities (USA)
Inc., wrote in a note. “Equity-market gains further
reduce the appeal of alternative assets like gold.”
Gold for February delivery climbed 0.2
Source: Angel Broking
4
Daily
5
Friday 19, December 2014
percent to $1,197.60 an ounce on the Comex in
percent this week. The Democratic Republic of
New York, trimming the first weekly decline in
Congo’s state-owned copper miner is on track
three. Holdings in the SPDR Gold Trust, the largest
to deliver its lowest output since 2004, the year
exchange-traded product backed by bullion,
after Africa’s biggest war ended. Aluminum and
were unchanged for a second day yesterday.
zinc fell in London, while nickel rose.
Among the other precious metal, Silver for
immediate delivery traded at $15.899 an ounce
Energy Market
from $15.885 yesterday, when prices rose for a
Global crude oil price rebounded from the
second day. The metal, down 6.7 percent this
lowest closing price since May 2009 amid the
week, is on course for the biggest such decrease
highest trading volatility in more than three
since September 2013. Spot platinum was little
years as Saudi Arabia’s oil minister said he’s
changed at $1,200.13 an ounce, set for the
optimistic about global demand in the future.
first weekly retreat in three. Palladium traded
West Texas Intermediate climbed as much as
at $793.95 an ounce from $792.70 yesterday,
2.6 percent in New York, trimming a fourth
poised for a weekly loss.
weekly drop. A measure of expected futures
Base Metal
Base metals ended with negative territory
movements and a gauge of options value was
at the highest level since October 2011, data
compiled by Bloomberg show.
on yesterday at the London Metal Exchange
Oil rebounded from the lowest closing
as the metal outlook in top metals consumer
price since May 2009 amid the highest trading
China remained gloomy following house price
volatility in more than three years as Saudi
data. In addition, mixed economic data from
Arabia’s oil minister said he’s optimistic about
the US dragged prices lower. However, upbeat
global demand in the future. West Texas
market sentiments after an upbeat assessment
Intermediate climbed as much as 2.6 percent in
of the U.S. economy and a promise to be patient
New York, trimming a fourth weekly drop. WTI
in raising rates by the Federal Reserve restricted
for January delivery rose as much as $1.39 to
sharp fall. The benchmark industrial metal,
$55.50 a barrel in electronic trading on the New
Copper prices fell, heading for the first weekly
York Mercantile Exchange and was at $54.42
drop this month, as demand concerns mounted
at 2:35 p.m. Sydney time. The contract, which
amid further signs of slowing economic growth
expires today, fell $2.36 to $54.11 yesterday. The
in China, the world’s biggest metals user. Copper
futures for delivery in March fell 0.6 percent to
settle at $2.8535 a pound at 1:14 p.m. on the
Comex in New York. The metal has dropped 2.7
percent this week. Among the other base metal,
Lead for delivery in three months retreated
1 percent to $1,865 a ton on the LME, after
touching $1,836, the lowest since August 2012.
The metal used in car batteries is down 6.5
Market Highlights - Crude Oil (% change)
as on December 18, 2014
Crude Oil
Unit
Last Prev.
day
WoW
MoM
YoY
Brent (Spot)
$/bbl
59.0
-1.7
-4.6
-24.1 -46.4
Nymex Crude
(Jan’15)
$/bbl
54.1
-4.2
-9.7
-28.4 -44.7
ICE Brent Crude
(Jan’15)
$/bbl
59.3
-3.1
-4.2
-25.4 -45.9
MCX Crude
(Dec ’14)
Rs/bbl
3531.0
-3.8
-2.9
-24.3 -41.6
Source: Angel Broking
Friday 19, December 2014
Daily
more-active February future gained 29 cents to
WTI for January delivery rose as much as
$54.65. Total volume was about 2 percent above
$1.39 to $55.50 a barrel in electronic trading on
the 100-day average. Prices have decreased 45
the New York Mercantile Exchange and was at
percent this year.
$54.42 at 2:35 p.m. Sydney time. The contract,
Crude has slumped more than 25 percent
which expires today, fell $2.36 to $54.11
since Saudi Arabia led a decision last month
yesterday. The more-active February future
by the Organization of Petroleum Exporting
gained 29 cents to $54.65. Total volume was
Countries to maintain its collective output
about 2 percent above the 100-day average.
target. U.S. oil producers continue to pump at
Prices have decreased 45 percent this year.
record levels, contributing to a global glut and
News & Report
Analysis
boosting speculation that they’ll compete with
the 12-member group for market share.
Brent for February settlement was 1 cent
ICE Futures Europe exchange. It slid $1.91 to
Al, Cu market in deficit during
Jan-Oct 2014: WBMS
$59.27 yesterday, also the lowest close since May
The market deficit for primary aluminium
2009. The European benchmark crude traded at a
for January to October 2014 was 542 kt which
premium of $4.64 to WTI for February. The front-
follows a surplus of 570 kt recorded for the
month spread was $4.04 at the end of last week.
whole of 2013, as per the estimation by World
higher at $59.28 a barrel on the London-based
Oil
companies,
while
trimming
2015
Bureau of Metal Statistics (WBMS).
budgets to cope with the lowest crude prices
Meanwhile the copper market recorded
in five years, are also shifting their focus to their
a deficit of 62 kt in January to October 2014
most-prolific, lowest-cost fields, which means
which follows a surplus of 281 kt in the whole
extracting more oil with fewer drilling rigs, said
of 2013. Reported stocks fell by 191 kt over
Goldman Sachs Group Inc. Global giant Exxon
the ten months. No allowance is made in the
Mobil Corp. (XOM), the largest U.S. energy
consumption calculation for unreported stock
company, will increase oil production next year
changes, particularly in the Chinese government
by the biggest margin since 2010. So far, the
stockpile.
Organization of Petroleum Exporting Countries’
WBMS in a statement said, demand for
month-old bet that American drillers would be
primary aluminium in the first ten months of
crushed by cratering prices has been a bust.
2014 was 41.43 million tonnes 2212 kt more than
So far, Crude has slumped more than 25
the same period in 2013. Production in January
percent since Saudi Arabia led a decision last
to October 2014 rose by 1398 kt compared with
month by the Organization of Petroleum
the first ten months of 2013. Total reported
Exporting Countries to maintain its collective
stocks fell by a further 173 kt during October
output target. U.S. oil producers continue to pump
and at the end of the month were 6564 kt which
at record levels, contributing to a global glut and
equated to 50 days demand and compares with
boosting speculation that they’ll compete with
7171 kt at the end of 2013.
the 12-member group for market share.
“Total stocks held in the four exchanges
6
Daily
7
Friday 19, December 2014
in London, Shanghai, USA and Tokyo were
1234 kt to 9165 kt which represented just over
4669 kt at the end of October 2014 which was
48 per cent of global demand. EU28 production
909 kt below the December 2013 total. Global
grew by 3.3 per cent and demand was, at 2836
producer stocks at the end of October 2014
kt, 10.6 per cent above the January to October
were 1402 kt which was 233 kt above the
2013 total. In October 2014, refined copper
previous year’s close. No allowance is made in
production was 1993.1 kt and consumption was
the consumption calculation for unreported
1930.4 kt, the statement added.
stock changes especially those held in China.”
Pb in surplus, Zn in deficit
during Jan-Oct 2014: ILZSG
Overall, global production rose in January
to October 2014 rose by 3.5 per cent compared
with January to October 2013. Chinese output
was estimated at 19633 kt and this currently
accounts for 48 per cent of the world production
total. Chinese apparent demand was 7.6 per
cent higher than 2013. Chinese net exports
were 45.0 kt in October and net exports for the
year to date were 223.4 kt, the statement added.
“Production in the EU28 fell by 0.26 per cent
and NAFTA output fell by 7.5 per cent. EU28
demand was 258 kt higher than the comparable
2013 total. Global demand rose by 5.6 per cent
during January to October compared with the
levels recorded one year previously. In October
2014, primary aluminium production was
4173.1 kt and consumption was 4174.6 kt.”
In copper it said, “World mine production
in January to October 2014 was 15.27 million
tonnes which was 1.13 per cent higher than
in the same period in 2013. Global refined
production rose to 18.84 million tonnes up 7.1
per cent compared with the previous year with
a significant increase recorded in China (up 822
kt) more than compensating for the 17.0 kt fall
in Chilean output and 6.1 kt decrease in German
production.”
The global consumption for January to
October 2014 was 18905.6 kt compared to
21039 kt for the whole of 2013. Chinese apparent
consumption in January to October 2014 rose by
The International Lead and Zinc Study Group
(ILZSG) released preliminary data for world lead
and zinc supply and demand during the first ten
months of 2014.
Provisional data reported to the ILZSG
indicate that world supply of re fined lead metal
exceeded demand by 15kt during the first t en
months of 2014. Over the same period , despite
a rise in LME inventories of 13kt, total reported
stock levels declined by 27kt.
Falls in lead mine production in Bolivia,
Canada and China were partially offset by
increases in Australia, Peru and the United
States resulting in an overall global reduction of
2.5% compared to the first ten months of 2013.
World
refined
lead
metal
production
increased by 1.8%. This was mainly a
consequence of higher output China, India,
Italy, Kazakhstan and the Republic of Korea that
more than balance d reductions in Peru and the
United States.
The demand for refined lead metal rose by
3% in Europe , 1.9% in China and 5.6% in India
but declined by 1.1% in the United States.
Overall global usage rose by 1.3%.
Chinese imports of lead contained in lead
concentrates increased by 19.3% to total 809kt.
Meanwhile, the global market for refined
zinc metal was in deficit by 277k t over the ten
Friday 19, December 2014
Daily
months from January to October 2014 with
Klaus Kleinfeld, chairman and CEO of Alcoa,
total reported inventories declining by 273 kt
will accept the Legend in Leadership Award of
over the same period .
the Yale Chief Executive Leadership Institute at
Despite falls in production in a number of
a ceremony to be held at the 80th gathering of
countries including Australia, Canada, India,
the Yale CEO Summit on December 18 at the
Ireland, Kazakhstan and Namibia, global zinc
Waldorf Astoria New York.
mine output increased by 1.9% compared to
The award will be presented to Mr. Kleinfeld
the first ten months of 2013. This was mainly
by Wilbur Ross, chairman and CEO of WL Ross &
due to a further reported rise in Chinese output
Co., and Ellen Kullman, chair and CEO of DuPont.
of 7.1%.
While most CEO Summit discussions are off the
Similarly the main influence on a rise in
record, members of the press are invited to
global refined zinc metal output of 3.8% was a
attend the award presentation to Mr. Kleinfeld
sharp 12.1% increase in Chinese production.
at 2:30 p.m., the final conference session to
Global demand for refined zinc metal
follow, and the closing reception.
increased by 5.9% primarily driven by an 11.6%
Summit organizer Jeffrey Sonnenfeld, senior
rise in Chinese apparent usage. Demand in the
associate dean for executive programs at the
United States rose by 2.8% and in the Republic
Yale School of Management, commented:
of Korea by 9.4%. However, in Europe usage was
“Klaus’ inspired leadership of Alcoa has shown
0.8% lower. Chinese net exports of refined zinc
that the 126-year-old company deserves at least
metal totalled 447kt, a fall of 8% compared to
the same enthusiasm that the media and Wall
the same period of 2013.
Street show for the new new thing! Just in the
Yale institute to honor Alcoa
Chairman
past 30 days, he has executed two visionary
materials acquisitions in the UK and Germany,
ensuring Alcoa’s preeminence on the frontier
of aerospace equipment. Launched at the
height of the financial crisis, he is leading the
transformation of Alcoa from a commoditycentric focus to an increased focus on multimaterial, innovative, value-added businesses.
His investments in enhanced manufacturing
and highly sophisticated engineering have
joined and helped catalyze the automotive
and aerospace industries. The company’s
transformation gained significant traction in
2013, and last year, Alcoa's total shareholder
return was roughly 60%. Klaus is universally
admired by his peer CEOs for his inspiring
global economic perspectives along with his
Klaus Kleinfeld
chairman and CEO of Alcoa
distinctive blend of industrial accomplishment,
8
Daily
Friday 19, December 2014
entrepreneurial decisiveness, and high integrity
Ivan Seidenberg of Verizon, Richard Teerlink of
character.”
Harley-Davidson, Holiday Inn founder Kemmons
Kleinfeld was born in Bremen, Germany, and
obtained a doctorate in Strategic Management.
Wilson, financier Wilbur Ross, and Lou Gerstner
of IBM.
He rose to serve as chief executive over his 20-year
The Summit theme is “The Global CEO
career with Siemens, the global electronics and
and Local Sensitivities: Leading at Once as
industrial conglomerate. While at Siemens, he
Diplomat, Patriot, Entrepreneur, Financier, and
was celebrated for his sweeping transformation
Industrialist.” Distinguished global corporate
of the company, increasing revenues and nearly
leaders from across industries will engage in
doubling market capitalization. Previously, he
lively, candid discussions at this invitation-only
served as president and CEO of Siemens’ U.S.
leaders’ conference hosted by the Yale School of
subsidiary. Kleinfeld joined Alcoa in 2007 as
Management.
president and chief operating officer and seven
Cos can’t exit projects after
coal block allocation
months later was made chief executive. Kleinfeld
is on the boards of HP and Morgan Stanley as
well as the U.S.-China Business Council, the
Chinese Premier’s Global CEO Advisory Council,
and the Brookings Institute. He also serves as
chairman of the U.S.-Russian Business Council.
The Legend in Leadership Award was created
24 years ago to honor current and former
CEOs who serve as living legends to inspire
chief executives across industries, sectors, and
nations. Past recipients include JIANG Jianqing
of ICBC Bank, FU Chengyu of Sinopec, Indra
Nooyi of PepsiCo, Jeff Immelt of GE, Jeff Bewkes
of Time Warner, Frank Blake of Home Depot, Dave
Cote of Honeywell, Ellen Kullman of DuPont,
Scott Davis of UPS, Alan Mulally of Ford, Andrew
Liveris of Dow, Duncan Niederauer of the NYSE,
Ken Chenault of American Express, David Stern
of the NBA, Ratan Tata of the TATA Group, Mike
Ullman of JCPenney, Infosys founder Nandan
Nilekani, Jamie Dimon of JPMorgan Chase,
Robert Iger of Walt Disney, Stephen Schwarzman
of Blackstone, Roger Enrico of PepsiCo, John
Pepper of Procter & Gamble, Don Keough of
Coca-Cola Co., McKinsey founder Marvin Bower,
Jim Kelly of UPS, Vanguard founder Jack Bogle,
Government plans to bar companies that
win coal blocks in the upcoming eauctions from
exiting the mining projects and blacklist for
a year those who withdraw from the bidding
process, according to draft bid guidelines
released recently. The draft coal auction
documents, circulated for comments of the
stakeholders, provide that power projects can
sell 20% of their uncontracted capacity in the
open market, while the balance has to be sold
through power purchase agreements with
distribution companies. Industry insiders said
presently over 10,000-mw of coalbased power
generation capacity do not have PPAs, making
them ineligible for supply from Coal India or
mining from coal blocks.An official in a private
power company said distribution companies
of only 4-5 states have floated tenders seeking
long-term power supply in the last few years.
Another clause in the bid documents
provide for penalising coal block allottees and
cancellation of their licences if there is delay in
development. "The clauses are contradictory,"
the industry official said. "At one end we cannot
9
Friday 19, December 2014
Daily
10
produce
p
pr
roduc
od
o
duc
uce
e for
fo
or no
o fault
fault
au
ultt of
of ours,
ou
o
ours
urs,
rss, while
whilille
wh
whil
e att tthe
he o
he
other
ther
th
he
err
6.28
6.28
6.
28 %,
%, L&T
L&
&T Power,
Powe
Powe
Po
werr,r, CLP
CLP India
Ind
ndia
ia and
and
nd Jaiprakash
Jai
aipr
ipr
prakas
akkas
ash
h
end we will be penalised for producing less."
AssociatesBSE 1.01 % with over 9,000-mw
Clause 3.1 of the draft bid documents for coal
blocks auction prohibits change in composition
power generation capacity, will be eligible to
participate in the auctions.
of a joint venture bagging a coal block while
The coal ministry official quoted earlier
clause 3.6.6 (b) discourages companies from
said Tata Power's Mundra UMPP and Reliance
withdrawing from auction once they qualify
Power's Krishnapatnam UMPP are not eligible
in the first stage. Coal block allottees cannot
for bidding for coal blocks.
transfer mining lease as per clause 3.10 of the
comments of the stakeholders, do not mention
bid documents.
A top official in the coal ministry said
prohibition
of
The draft bid documents, circulated for
change
in
joint
venture
the qualification or disqualification of such
plants.
composition or mining lease was necessary
The other plants in this list include 1,980-mw
to prevent misuse of coal and profiteering by
Bara plant of Jaiprakash Associates, 1,200-mw
companies, but experts said the clause does not
Anpara-C of Lanco Infratech, 1,980-mw Talwandi
provide for mergers or acquisition.
Sabo of Vedanta Group, 1,320-mw Jhajjar plant
Kameswara Rao, energy leader at PwC, said,
of CLP India, 1,400-mw Nabha of L&T Power,
"The limitation on change of control during bid
1,320-mw Karchana plant of Jaiprakash.
process is understandable, but prohibition of
Uttam Value Steels bags
National Energy Conservation
Award 2014
transfer of mining lease appears worrisome if it
is not made clear that the company owning the
lease can undergo merger or acquisition."The
draft bid documents are also silent on whether
the 8,000-mw ultra-mega power projects of
Tata PowerBSE 3.69 % and Reliance PowerBSE
3.17 %, which planned to use imported coal,
and six plants of firms like Lanco InfratechBSE
Uttam Value Steels Limited, announced
that it has received the most coveted award
recognising Energy Conservation on a national
platform - The “National Energy Conservation
Award 2014”
Daily
Friday 19, December 2014
11
Uttam Value Steels Limited is a part of the Rs.
conservation of energy. The award is given to
15000 crore Uttam Group, one of the country’s
organisations across various sectors including
largest manufacturer-exporter of value added
Iron & Steel, Textiles, Aluminium, Paper & Pulp,
steel products.
Hospitality, Health Care, Tourism, among others.
National Energy Conservation Award is
The evaluation criterion is very stringent and
a program set up by the Bureau of Energy
guided by an award committee comprising of
Efficiency, a statutory body under the ministry
industry experts from various industrial sectors.
of power, Government of India instituted in the
Commenting on the achievement, Mr. Ankit
year March 2002 under the provisions of Energy
Miglani, Director said “We are delighted on
conservation Act, 2001.
being presented this award. At Uttam Value, it
Uttam Value has received the recognition
is our continuing effort to utilise the existing
for its concerted initiatives to efficiently utilize
sources of energy optimally. Being a socially
and conserve energy. The Award was presented
responsible corporate, this recognition will spur
by Shri Piyush Goyal, Union Minister of state
us to continue to invest in best practices to
for Power, Coal and New & Renewable Energy
achieve newer heights in energy conservation.”
(Independent Charge) to Mr. Sunil Katial,
Tata Steel resumes key iron
mines amid shortage
Director - Group Manufacturing, Uttam Group.
at a function held recently at Vigyan Bhavan,
New Delhi.
Instituted by the Government of India,
the National Energy Conservation Award
is an annual honour given each year to an
organisation in recognition of its systematic and
serious efforts towards efficient utilization and
Tata Steel Ltd restarted production from two
of its four iron ore mines recently, a company
source and a government official said, cutting
a shortage that had forced the company to
import the raw material for the first time.
The court restrictions over the past three
Daily
Friday 19, December 2014
12
resort to iron ore imports for the first time in its
107 years. It has bought 3 million tonnes this
fiscal year that began in March, mostly from
overseas and from India's top producer NMDC.
But iron ore transportation costs are a
concern for the company as most steel plants
are located away from the coasts.
Hindalco’s blocks reserved for
power sector
years to curb illegal mining have stifled iron ore
output in India, which used to be the world's
third largest supplier. As a result, Tata Steel
and JSW Steel are turning to imports even as
international prices languish.
Tata Steel reopened the iron ore mines
in Odisha after a court directed the local
government to let the company operate
them until a hearing on January 28, Odisha's
mines director, Deepak Kumar Mohanty, told.
A company source, who did not want to be
named, also confirmed the reopening.
The company was asked to stop production
from the two mines last month pending the
renewal of their leases. One other mine in Odisha
is shut since May and the state was considering
a request to let that open as well, Mohanty said.
Tata Steel produces about 10 million tonnes
from the mines in Odisha state. The company is
also close to reopening its top mine Noamundi
in neighbouring Jharkhand state. The mine,
which has a capacity of 10 million tonnes a year,
stopped operations in September pending the
renewal of its lease.
The company needs more than 20 million
tonnes of unprocessed iron ore per year to
run its 10-million-tonnes-a-year steel plant in
Jamshedpur. Most of its steel making capacity
of 29 million tonnes is in Europe.
The mine closures have forced Tata Steel to
Hindalco’s plan to run its Mahan Aluminium
and Hirakud Aluminium smelter on captive coal
has been dealt a blow with the Coal Ministry
keeping the blocks linked to both the projects
for the power sector. The blocks reserved for
the power sector do not include captive power
plants.
The Ministry notified the list of coal blocks
to be auctioned and allocated along with the
specified end-use. The Mahan coal block in
Odisha, which was given to both Essar Power
and Hindalco, has been reserved for the power
sector.
The coal from the block was to feed the
Mahan Aluminium smelter where the company
had invested around Rs. 10,500 crore. While
Hindalco may no longer be able to utilise it,
Friday 19, December 2014
Daily
Essar Power can if it decides to bid for the block.
A
team
of
researchers
from
13
Indian
Hindalco’s Talabira I coal block, which was
Institute of Science (IISc), Bengaluru, led by
de-allocated by the Supreme Court order
Prof. Venkatarama Reddy has designed an
of September 24, was key to the company’s
assessment framework for quantifying the total
expansion plan for its existing Hirakud smelter.
energy expenditure, called "Embodied Energy"
The Talabira-I block has also been reserved for
(EE) in their paper, says a Gubbi Labs release.
the power sector.
The production of building materials also
Aluminium most energy
intensive building material in
India
results in emission of greenhouse gases. As K I
Praseeda, a co-author on the paper, says, "Focus
of the construction industry should be on using
low energy alternative building materials".
Though earlier studies have contributed
in calculating the energy expenditure, they
lack agreement on the method of assessment.
Praseeda says current researches in energy
conservation in buildings focus more on
limiting "operational energy" (lighting and
air conditioning energy) in buildings, without
much regard to embodied energy of buildings.
"This is mainly due to lack of data on energy
consumption in manufacturing of building
materials in the country."
The
team
developed
the
assessment
framework for quantifying the total energy
Of the building materials used in India,
aluminium and burnt clay bricks are among the
most energy intensive, says a new study.
The study has developed a framework
for assessing the energy consumed during
production of building materials, in an attempt
to quantifying energy expenditures from
buildings.
construction materials per year, with energy
for
manufacturing
building
materials amounting to 20-25 per cent of the
country's total energy demand. There is thus an
increasing demand for energy efficient building
materials.
and tried to bridge this gap in knowledge.
The study is based on actual industrial data,
which considered basic building materials
like cement, steel, glass, coarse aggregate,
aluminium and some building products like
burnt clay bricks, concrete and laterite blocks,
ceramic tiles, clay roofing tiles, polished granite
India uses more than 2 billion tonnes of
expenditure
consumed during building material production
and marble slabs.
The final analysis showed that among the
basic materials, aluminium is found to have
higher EE (141.55 MJ/kg- 549.16 MJ/m2) than
steel (32.24 MJ/kg), glass (7.88 MJ/kg) and cement
(2.38-3.72 MJ/kg). On the other hand, among the
masonry units, burnt clay bricks have higher EE
Friday 19, December 2014
Daily
14
than concrete and laterite blocks. Ceramic floor
second quarter of FY15. In the July-September
tiles are also found to have higher EE.
period, CAD had widened to $10.1 billion, or
"Energy
expenditure
for
building
construction is highly variable as it depends on
2.1% of GDP, from $7.9 billion, or 1.7% of GDP, in
the first quarter.
the location of the building, its function or use,
“According to our estimates, star and
the selection of building materials and many
premier trading houses had imported around
other factors," says Praseeda.
150 tonnes of gold in November, thinking that
"The building codes and building energy
once the government had imposed the import
rating guidelines should mandate assessment of
restrictions, they would sell at a higher price
embodied energy of buildings and evaluation of
and book profits. But that didn't happen and
relative significance of embodied and operational
now there's a glut. So, they are now selling . 50-
energy," he says, adding this would help in
200 per 10 gm begold at a discount of ` cause
comprehensive building energy assessments.
there's hardly any demand in the market,“
Gold imports slip in Dec as
curbs removed
Bachhraj Bamalwa, director, All India Gem &
Importers stuck with huge stocks are selling
at low prices, with demand at an ebb
Union finance minister Arun Jaitley's recent
move to withdraw import curbs on gold seemed
to have paid off. Importers who had stocked up
on gold in November in anticipation that the
government would introduce stricter curbs are
now stuck with huge volumes of the yellow
metal, and are forced to sell at a discount as
there's no demand.
As a result, import of gold has come down
in December, bringing relief to the Narendra
Modi government which was worried over the
widening current account deficit (CAD) in the
Jewellery Trade Federation, told ET. Jaitley
had, on November 28, surprised the market
by removing the 80:20 import scheme, which
mandated that 20% of all imported gold had
to be mandatorily exported before any new
shipments could be brought in. “It was all over
the trade that the authorities may impose
restrictions on gold import after data showed
that this had more than quadrupled in October
2014 to 106.3 tonnes (26 tonnes in October
2013),“ said industry officials.
Rajesh Mehta, chairman, Rajesh Exports, a
firm that imports gold, said availability of gold is
better in the market as a lot of it was imported in
November since there was an expectation that
the government will come up with stricter rules.