Tuesday, 13 March 2018

Steel exports from India keep on rising, 3 times more exports in FY 2017: Sources

According to the International Trade Administration, India, which is the 14th largest steel exporter in the world, exported just five per cent of its exports of 228 thousand metric tons in FY 2017, with the bulk of the exports being to Belgium, Thailand and markets like Vietnam. But it will hurt firms which export pipes and tubes besides stainless steel, which account for 34 per cent of the steel exports to the US. 

The punishing move of tariff comes also when anti-dumping duties are already in vogue. The timing of this action is unfortunate — not just because of the synchronized economic recovery in many parts of the world but also just when Indian steel exports have starting rising. 

In FY 2017, India exported 4.9 million metric tons of steel — up from 1.8 million in 2016 with flat products accounting for a large share. Steel prices have also been on the rise. The US trade action could force Indian steel exporters to either scout for new markets or possibly counter flooding of products into the local market by other major steel exporters including from Europe.

Source: The Indian Express

Monday, 26 February 2018

Lenders approve Aion-JSW Steel offer for Monnet Ispat

The committee of creditors has approved the offer made by a consortium of Aion Capital and JSW Steel Ltd for Monnet Ispat Ltd, according to media reports. The offer consists of a payment of Rs2,450cr to the lenders and equity funding of Rs1,050cr; the remaining debt will be acquired by the consortium for Rs200cr. The consortium was the sole bidder for Monnet Ispat. The debt of Monnet Ispat currently stands at ~Rs10,237cr.

Aion Capital holds a 70% stake in the consortium with JSW Steel holding the remaining 30%. Under the terms of the deal, the new consortium would hold 75% in Monnet Ispat, while 18% would be held by lenders and 3% by the existing promoters. The existing promoters of Monnet Ispat currently hold a 25.27% stake in the company.

Under the terms of the deal, there is significant dilution of equity especially for minority shareholders. However, till the deal details are formally announced, it would be possible to accurately estimate the benefits for minority shareholders from this deal.

Monnet Ispat has an integrated steel plant with a production capacity of 1.5mn tonnes per annum (mtpa), with a 230MW captive power plant. The company also has coal beneficiation facilities with a total production capacity of 7.5mtpa.

Source: India Infoline