Date : 19/11/2024  Issue No.: 3601/24-25

Dear Foundrymen,

IIF - Western Region Conference WESCON 2024 Planned on 17th & 18th December,2024 @ Hotel Orchid Pune.

Kindly Book your seat for WESCON 24 as registration has started. The last date to book your seats with "Accommodation" as per the Brochure is 15th November 24,few days to go... Hurry up!!

Google form link- 

docs.google.com/forms/d/e/1FAIpQLSe2cUQ_4RVr4rorJRpN5s1UpFX8ZsOgLrTTUUJ41erE1vPj9A/viewform

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The Institute of Indian Foundrymen

Aarti Ghag

Sr. Officer IIF-WR

7303511171

*** India: BigMint's ferrous scrap index dips by INR 100/t

*** India: Pellet prices in Raipur drop by INR 500/t ($6/t) amid weak market liquidity

*** India: NMDC to auction 5,000 t of iron ore pellets from Karnataka

*** India: 12,000 t of iron ore lumps booked in Vedanta's auction from Karnataka

*** India: Pellet prices in Raipur drop by INR 500/t ($6/t) amid weak market liquidity

*** India: Stainless steel scrap imports drop 16% y-o-y in H1FY'25 amid shift towards semis

*** India: Stainless steel scrap prices hold steady w-o-w amid need-based buying

*** Chinese Magnesium Alloy price moves down

*** Chinese Magnesium Ingot export price moves down further

India: Melting scrap prices hold firm d-o-d in Alang

Ship-breaking melting scrap prices in Alang, Gujarat, remained stable d-o-d on 18 Nov'24. According to BigMint's assessment, HMS (80:20) was at INR 34,300/t ($406/t) ex-yard. Prices of semi-finished and finished steel held steady in yesterday's trading session in the region. This, along with moderate trade activities for scrap, prompted suppliers to keep their offers unchanged today.

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India: IMFA's ferro chrome output dips 3% y-o-y in H1FY'25

Indian Metals and Ferro Alloys Ltd (IMFA) reported a 3% y-o-y decline in its ferro chrome output to 129,224 t in H1FY'25 against 133,057 t in H1FY'24. Additionally, in Q2FY'25, production stood at 68,248 t, up 12% q-o-q, driven by stable input costs and selling prices.Meanwhile, chrome ore production declined by 24% y-o-y to 307,099 t in H1FY'25.

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India: Sarda Energy's ferro alloys production edges up by 2% q-o-q in Q2FY'25

Sarda Energy and Minerals Limited (SEML), an integrated steel producer, reported a slight 2% increase in ferro alloys production to 0.048 mnt in Q2FY'25 (Jul-Sep'24) compared to 0.047 mnt in Q1FY'25.Sales remained steady at 0.046 mnt in both Q1FY'25 and Q2FY'25.On a y-o-y basis, output declined by 7% in Q2FY'25 compared to Q2FY'24.

With winter approaching and demand being weak, how will the processing fee for die-casting zinc alloy trend in November? 

As winter gradually approaches, how will the processing fee for die-casting zinc alloy in China trend in November from a cost perspective? Firstly, on the fundamentals side, according to SMM, the operating rate of die-casting zinc alloy in October recorded 47.01%, down 2.05% MoM, due to weak downstream consumption and the National Day holiday. Current downstream consumption remains weak, and enterprises expect the operating rate to increase to 47.89% in November due to the absence of major holidays.

Current weak demand is mainly influenced by two factors: Firstly, although zinc prices have slightly decreased recently, they remain at a high level, leading to weak downstream consumption. Additionally, some enterprises report that downstream buyers are adopting a wait-and-see attitude towards zinc prices, believing there is still room for a decline. As a result, even though zinc prices slightly dropped mid-week, enterprise orders only marginally improved, showing overall stability. Secondly, domestic downstream consumption demand is not strong, and with winter approaching, the real estate sector, which die-casting zinc alloy enterprises heavily rely on, will be affected, further suppressing downstream demand. Under weak consumption, the processing fee for die-casting zinc alloy is expected to remain stable.

However, aside from consumption reasons, production costs are also worth our attention. According to SMM, the current processing fee for enterprises, excluding equipment depreciation, maintenance, and other additional costs, mainly includes natural gas fees (electricity, solid fuel fees), labor costs, transportation fees, taxes, etc. Based on SMM's rough estimate, the current production cost is around 450 yuan, with transportation costs accounting for a significant portion, generally between 22% and 44%, consumption during production process around 29%, taxes around 16%, and labor costs above 11%. Transportation fees vary depending on the actual distance. Additionally, in winter, natural gas fees will rise due to pipeline impacts from low temperatures. Currently, the price of natural gas used by enterprises is about 4.5 yuan/m³, and this price typically rises to above 5 yuan/m³ in winter. Production costs will thus increase by about 20 yuan/mt. Furthermore, as year-end approaches, some enterprises may issue additional wages to workers, further increasing production costs.Taking 3# zinc alloy as an example, the current SMM 3# zinc alloy Guangdong quotation is 550-750 yuan/mt, with an average price of around 650 yuan/mt. The estimated cost, excluding other metal fees and additional costs, is about 450 yuan/mt, resulting in a profit of around 200 yuan. However, after adding additional enterprise costs, the profit for zinc alloy is expected to be further compressed. The processing fee for other grades of zinc alloy will similarly be compressed.

In summary, given the current situation, the operating rate of enterprises in November is expected to increase by 0.88 percentage points MoM to 47.89%, which will drive an overall increase in production. With the recent increase in production, enterprises should lower the processing fee. However, the recent narrowing of the Shanghai-Guangdong price difference and the zinc-aluminum price difference, along with the widening zinc-copper price difference, has continuously compressed enterprise profits. Additionally, as the processing fee is currently quite transparent, the entry of smelters into the die-casting zinc alloy market has intensified competition. Coupled with the lower processing fee for non-standard zinc alloy, the market share of traditional alloy enterprises is continuously shrinking. Therefore, the processing fee for die-casting zinc alloy is expected to remain stable in the short term.

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Indian economy capable of handling global shocks

Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the Indian economy is strong enough to handle any adverse fallout from global events."Today, the growth of the Indian economy presents a picture of stability and strength," Das said while addressing an event at the launch of the Kochi International Foundation here.

The country's external sector is also strong and the current account deficit (CAD) has remained within manageable limits as it presently stands at 1.1 percent of GDP. Earlier, in 2010 and 2011, it was in the range of six to seven per cent, he addedThe central bank chief also pointed out that India has one of the largest foreign exchange reserves in the world at about $675 billion. He further stated that .the country's inflation was expected to be moderate despite periodic humps.

India's inflation rose to 6.2 percent in October from 5.5 percent in September because of food inflation, he said.Referring to inflation as an elephant in the room, Das remarked: "Now the elephant has gone out of the room for a walk, then it will go back to the forest."He also pointed out that when the Ukraine war started, inflation went up but the RBI followed the right monetary policy, unlike some other countries, and succeeded in keeping the price spiral in check.

"What we did not do in India is also important. RBI did not print notes because if we start printing notes the problems we are trying to resolve will expand and go beyond handling. In many countries the inflation was deep-rooted but ours is moderating," he added."We kept our interest rate 4 per cent, therefore making our recovery much easier," he pointed out.Das also highlighted how the RBI is bringing about a transformational change in credit delivery, especially to small entrepreneurs and farmers, through the Unified Payments Interface (UPI) and the Unified Lending Interface (ULI) launched recently.

Should you consume ghee on an empty stomach? This is what an expert says

Drinking ghee on an empty stomach in the morning aids in the body's healing process, says an expert

There is no doubt that ghee is great for the overall health of a person. It is packed with nutrients that are known to benefit the skin, scalp, internal organs, etc. But should it be taken on an empty stomach? If yes, what does it do for health?

According to nutritionist Bhakti Kapoor, there are six benefits of consuming ghee on an empty stomach:

1. It is extremely beneficial for the health of your skin.

2. It has natural detox power that can clean your digestive system.

3. It can work as a filler and help you stay fuller for longer.

4. It enhances your bone strength and stamina.

5. It can improve digestive strength by the natural secretion of gut-friendly enzymes.

6. Ghee helps to boost concentration and help with brain development.

Kapoor took to Instagram and explained in a long caption that ghee improves small intestine absorption and lowers the acidic pH of the gastrointestinal system. “Ghee from cows is a natural source of antioxidants that fights free radicals and slows down the oxidation process.”

“Drinking ghee on an empty stomach in the morning aids in the body’s healing process by improving the process of cell regeneration. So much so that it even aids weight loss,” she added.

Kapoor mentioned that according to Ayurveda, ghee is a “samskaraanuvartana, or one that retains its goodness along with the health benefits of the ingredients it is cooked with”, and that if you are someone struggling with a “sluggish gut”, you can have one tsp on an empty stomach.

 

The Institute of Indian Foundrymen