Daily Pour

Date: 17/02/2025   Issue No.: 3651/24-25

Compiled By: Aarti Ghag, Sr. Officer - WR

B. Ramchandran, Chennai

IIF News

Dear Foundrymen,

Dear All,

The Institute of Indian Foundrymen

Is organising inter-region work visit under Project Prayaas (Knowledge Sharing Program) 

To

M/s Aakar Foundry Pvt. Ltd & M/s Force Motors Ltd.

Pune (Western Region)

On 24th March 2025

 Registration is open for IIF Industry Members of the Southern Region, Northern Region, Eastern Region & Western Region limited to a total of 30 Nos.

Registration charges 2500 per person + GST

Please note that all hotel accommodation and travel expenses to PUNE will be taken care by delegates.

On completion of Factory visits, we will proceed by our bus to “Della Resorts Lonavala”

for the evening function. (Charges applicable)

Please send your registration before 5^th March 2025 to: western.region@indianfoundry.org

 For any clarifications, please contact

 ***

With Regards,

Aarti Ghag

Sr. Officer, IIF-WR

Phone: 7303511171

Thought of the Day

News Letter Supported By

Today's Top Raw Materials Headlines

*** India: Melting scrap prices decrease by INR 200/t d-o-d in Alang

*** India: BigMint's scrap index slides by INR 200/t amid weak steel demand

*** India’s scrap imports struggle amid rupee volatility

*** India: Domestic stainless steel scrap dips w-o-w, imported stays range-bound

*** India: Ferro molybdenum prices rise to three-month high amid foreign exchange fluctuations

*** India: BigMint's coking coal index dips, market awaits fresh deals for price direction

*** India: Imported manganese ore prices surge to 4-month high; global miners prioritise China

*** Chinese coke prices expected to fall further

Raw Material News

India mandates the imported stainless steel pipes possess BIS certification 

According to the report, the Indian Department for Promotion of Industry and Internal Trade (DPIIT) has mandated that stainless steel pipe products must be certified by the Bureau of Indian Standards (BIS).

These products cannot be produced, sold, traded, imported, or stored without this certification, as stipulated in the latest Stainless steel Pipes and Tubes (Quality Control) Order, 2025. This decree will take effect on August 1.

This measure permits the exemption of up to 500 kilograms of such goods imported annually for research and development purposes, provided they are not intended for commercial sale. The DPIIT continues to safeguard the industry and consumers through issuing quality control orders.

***

India's Baldota Group to build new greenfield steel plant in Karnataka

India's Baldota Group has announced plans to invest about US$6.2 billion to build a 10.5 million-tonne-a-year greenfield steel plant in the southern state of Karnataka.

The Baldota group said in a statement that they will hold a groundbreaking ceremony next month and the investment will be made in phases. It will take about two-and-a-half to three years to become fully operational.
The Baldota Group is a leader in mineral exploration, mining, industrial gas, pellet production, wind power, shipping and waste management products.

***

India: Melting scrap prices fall by INR 300/t d-o-d in Alang

Ship-breaking melting scrap prices in Gujarat's Alang market decreased by INR 300/t d-o-d on 15 Feb'25. According to BigMint's assessment, HMS (80:20) prices stand at INR 32,500/t ($375/t) ex-yard. Demand for semi-finished and finished steel remained limited in the region during yesterday's trading session. Furthermore, average trade activity in scrap led suppliers to reduce their offers today.

Industry News

Trump announces plan for 'reciprocal' tariffs: Update

President Donald Trump said today he would impose "reciprocal tariffs" on imports from an undisclosed number of countries sometime in the future, a move that could affect imports of ethanol and likely many other energy commodities.

The idea behind the next major wave of tariffs Trump plans to unveil is to raise the US import tariffs to the same level foreign countries charge on exports from the US. A fact sheet circulated by the White House singled out Brazil's tariffs on US-sourced ethanol and EU's higher tariffs on imported cars as examples of the allegedly discriminatory treatment that Trump would attempt to address.

"They charge us a tax or tariff, and we charge them the exact same tax, very simple," Trump told reporters at the White House.As with his first tariffs against Canada and Mexico — paused until 4 March — and against China, which went into effect on 4 February, there is a great deal of regulatory uncertainty on how or when the tariffs will be implemented.

"Nobody knows what that number is, unless you go by the individual country, and you can see what it is," Trump said.So far, the pending actions do not yet appear to be as severe or hastily implemented as Trump's recent comments led many to believe. His directive does not set a specific deadline for when the reciprocal tariffs will be imposed. It merely directs US government agencies to review if US exporters face higher taxes and other trade barriers compared with their foreign competitors, and to propose countermeasures.

The review preceding the potential imposition of 'reciprocal tariffs' will be complete by 1 April, Trump's commerce secretary nominee, Howard Lutnick, said. "We'll be ready to go on 1 April and and we'll hand it to the president, and he'll make a decision," Lutnick said.The intent of the directive is to force foreign countries to lower their tariffs against the US. But that outcome is not guaranteed. Trump's 10pc tariff on imports from China, and Beijing's more limited counter-tariffs, went into effect this month despite his claim that he would quickly negotiate with Beijing to avert a trade war.

In what is becoming a norm with the tariff announcements, Trump is alternatively downplaying inflationary effects of such tariffs, or casting any negative effects as justified.

The tariffs are going to result in "tremendous amounts of jobs, and ultimately prices will stay the same, or go down, but we're going to have a very dynamic country," Trump said.Prompted by the reporters to say if voters would hold him responsible for any resulting spike in inflation, Trump said, "prices could go up somewhat short-term, but prices will also go down."

The White House, at least, no longer rejects descriptions of tariffs as a tax, even though it continues to insist that only foreign exporters — not US consumers — will be paying it.trump has imposed a 25pc tariff on imported steel and aluminum that will become effective on 12 March.

The 1 April date referenced in today's announcement is also a deadline set in an earlier Trump executive order for all US government agencies to investigate the causes of "our country's large and persistent annual trade deficits in goods". That review is the first step in planned imposition of tariffs on national security and other grounds against imports from the EU, UK, India, Vietnam and other major economies.The large deficit the US runs in trade in goods with India will be a subject of Trump's meeting later today with Indian prime minister Narendra Modi. The US expects India to step up purchases of crude and other energy commodities to better balance bilateral trade.Trump likewise told Japan's prime minister Shigeru Ishiba last week that Tokyo should ensure that Japanese energy companies source more US oil, LNG and ethanol to "get rid of" the US' trade deficit with Japan.

***

India's domestic policy can handle adverse impact of US tariff hike: Morgan Stanley

The direct impact of reciprocal tariff hikes by the US will likely be manageable but, the indirect impact through uncertainty weighing on business confidence is more worrisome. However, domestic policy will likely remain supportive of growth and incrementally more measures will be taken if downside risks emerge, according to a Morgan Stanley report released on Thursday.
Prime Minister Modi has reached the US on a scheduled visit to meet President Trump and the outcome likely will include increased imports of energy and defence equipment from the US (Global Times, February-25) and attempts at a mini-trade deal, which could help to lower tariff rates on key segments for imports from the US. As such, under the WTO, it will not be possible to lower tariff rates bilaterally, the report states.

President Trump has indicated that he may impose reciprocal tariffs which could impact India, given India has higher tariff rates vis-à-vis the US. Weighted average tariff rates imposed on US imports by India is at 8.5 per cent (adjusted for reduction in the recent budget) vs. tariff rates imposed by the US at 3 per cent, the report states.Product-wise tariff differential is stark and key segments, which could come under pressure due to reciprocal tariff hikes are electrical, machinery, gems and jewellery, pharmaceuticals, fuels, textiles, iron and steel, autos, and chemicals, according to the report.

The US accounts for 17.7 per cent of India's goods exports, and India's trade surplus with the US stands at US$45.7bn, compared with other Asian countries such as China, Japan, Thailand and South Korea, India's trade surplus with the US is low. India has the seventh-largest trade surplus amongst nations with the US.The report identifies three areas of concern. First, an increase in weighted average tariff rates by approximately 6 percentage points would likely be manageable. However, we worry that certain segments may get much higher tariffs, considering that India levies very high tariffs on certain segments like motorcycles (tariff rate of 30 per cent, reduced from 50 per cent earlier), which could push the weighted average tariff rate higher

Second, an indirect impact from uncertainty stemming from tariff policies creating an overhang on business confidence and potentially lower global growth is another area of concernThird, the impact of uncertainty leading to risk aversion and strength in the US dollar weighing on central banks to effectively ease domestic financial conditions is also a downside risk.

For India, the weighted average tariff rate on imports from the US is likely to decline by 1 percentage point from 9.5 per cent (in 2022 per UNCTAD) to 8.5 per cent in 2025 due to the tariff reductionThe report lists the outcome of PM Modi's meeting with President Trump, US tariff-related policies and the trend in capital flows as important key factors.

The US has been a significant destination for India's exports, with its share in overall exports at 15.8 per cent in F2018 (pre-tariffs), while it rose to 16.9 per cent in F2020 and touched 17.7 per cent in F2024. Among key commodities that India exports to the US are electrical machinery, gems and jewellery, pharma products, textiles, autos iron and steel, autos and chemicals.On the other hand, India comprises a rather tiny share of US overall imports, with its share at 2.1 per cent in 2017 and 2018, rising by 20bps to 2.3 per cent in 2019, and further up to 2.7 per cent as of 2024, registering a ~11.4 per cent CAGR from 2017 until now. As such, India runs a trade surplus with the US, tracking at US$ 45bn in CY24, making it the seventh-largest trade surplus amongst nations that have a trade surplus with the US.The US is also an important market for India's services exports, with a share of 54 per cent in India's software service exports as of FY2024, as per RBI data. Within services, computer services comprise the highest share at 27 per cent, the report added.

Life Style and Management

Here's another reason for you to get cataract surgery

Jokes All the Way......