Indian Economy : News,Discussions & Updates

Ashwin

Agent_47
Staff member
Administrator
Nov 30, 2017
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Bangalore
Reverse UNO card ?!

The devil would be in the details. Like what type and for what use. They are by far the biggest producer!

China produced 93.4 MT of crude steel in July, an increase of 9.1% compared to July 2019. India produced 7.15 MT of crude steel in the same month compared to 9.48 MT in July 2019. Japan, on the other hand, produced 6.0 MT of crude steel in July, down 27.9% in July 2019. South Korea’s steel production was 5.5 MT, down by 8.3% in July 2019.
For example, we mainly export lower grade iron ore to keep the furnace burning !.
China is after all the world’s largest steelmaker. They are responsible for half of the global steel output and they need a lot of iron ore to keep meeting their lofty production targets. Also, considering the economy is slowly getting back up to speed, it makes sense to beef up the country’s iron ore stockpile right now.

Ideally, they’d be looking at Australia or Brazil to fill the supply void. But natural calamities have disrupted that equation. A dam rupture in Brazil hit the country's biggest mining company and the tropical cyclone Veronica affected production in Australia. Meaning, Chinese steelmakers have had to look elsewhere. And it seems they have turned to India.

But then this does not explain everything. After all, it’s not like demand for steel is skyrocketing at the moment. Auto manufacturers are crippled. Real Estate isn’t exactly booming either. Construction activity is yet to reach top gear. So it’s a bit weird that Chinese steelmakers are still producing ridiculous amounts of steel at a time when buyers are hard to come by.

It makes no economic sense. Until that is… You start digging a bit.

Most steel plants in China still use the blast furnace — a large structure that takes in hot air and converts iron ore into molten iron under extremely high temperatures. The molten iron has to be purified and shaped into cuboids before you can carve steel parts out of it. But the blast furnace is a key component of any integrated steel-making plant.

However, the whole arrangement is a bit peculiar since you don’t really turn off a blast furnace unless you’re shutting it down for good. You have to keep it running. If you don’t, the blast furnace cools down and the iron and slag that collect at the bottom turn into a solid mass.

Once this happens it’s extremely difficult to re-melt all of this stuff and start the furnace once again. In the meantime, the steel-making process comes to a grinding halt. The entire plant has to cease operations.

So even if demand for steel does not necessarily keep pace with production numbers, manufacturers are still compelled to produce steel. And this brings us back to the India equation.

India mainly exports lower grade iron ore (~58% iron content). They could export higher-quality ore, but that would attract a 30% duty and it would inevitably push prices higher. Foreign manufacturers won’t pay that kind of premium. So most domestic exporters simply stick to low-grade iron.

And since Chinese steel mills are desperately trying to keep costs low, they’ve resorted to importing large quantities of cheap iron ore from India and are currently churning out steel even if nobody really wants them. It’s a perplexing way of doing business but one that’s still pretty cost-effective. And maybe when the effects of the pandemic slowly start waning, Chinese steelmakers will finally get rid of all this excess stockpile they've been hoarding so far.
 
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Gautam

Team StratFront
Feb 16, 2019
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WTF is happening ?!?! :eek: :eek:

Reliance Industries offers Amazon $20 billion stake in retail arm: Report

Updated: 10 Sep 2020, 01:13 PM IST
By Bloomberg

A deal, if successful, would not only create a retail behemoth in India but will also turn Jeff Bezos and Asia’s richest man from rivals into allies in one
of the fastest-growing consumer markets in the world
1599736538431.png


Indian billionaire Mukesh Ambani’s Reliance Industries Ltd. is offering to sell a roughly $20 billion stake in its retail business to Amazon.com Inc., according to a person with knowledge of the matter. Amazon has held discussions about investing in the conglomerate’s Reliance Retail Ventures Ltd. unit and has expressed interest in negotiating a potential transaction, the person said. Mumbai-based Reliance Industries is willing to sell as much as a 40% stake in the subsidiary to Amazon, the person said, asking not to be identified because the information is private.

A deal, if successful, would not only create a retail behemoth in India but will also turn Jeff Bezos and Asia’s richest man from rivals into allies in one of the fastest-growing consumer markets in the world. At $20 billion, the deal would be the biggest ever in India as well as for Amazon, according to data compiled by Bloomberg.

Shares of Reliance Industries extended gains and touched an all-time high after the Bloomberg News story. The stock surged 4.2% as of 12:08 p.m. in Mumbai. The Indian rupee rose as much as 0.5% to 73.1588 per dollar on expectations of more capital inflows.

In India, where a lot of people still shop in tiny street-corner stores, the deal could be Amazon’s way of acknowledging that it needs a locally-entrenched partner with a strong on-the-ground presence. For Amazon, Reliance would provide a brick-and-mortar component to its ambitions in a country where online purchasing still accounts for a minuscule share of an estimated $1 trillion retail market.

Amazon hasn’t made any final decision on the size of its potential investment, and talks could still fall apart, the person said. A representative for Amazon declined to comment.

“As a policy, we do not comment on media speculation and rumors," a Reliance spokesman said in an emailed response to Bloomberg News. “Our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures in compliance with our obligations."

A deal with Amazon would give further credence to Ambani’s ambitions to create an e-commerce giant for India akin to China’s Alibaba Group Holding Ltd. Reliance Retail already lured about $1 billion from Silver Lake Partners, while U.S. private equity firm KKR & Co. is in advanced talks to invest at least $1 billion, and L Catterton is also considering investing, Bloomberg News reported Wednesday.

The investment in Ambani’s retail ventures comes after he raised $20 billion selling stakes in his technology venture -- Jio Platforms Ltd. -- to investors including Facebook Inc. and Google. The billionaire appears to be seeking to repeat that fundraising strategy with his retail business.

Reliance Retail -- a unit of the energy-to-telecommunications conglomerate Reliance Industries -- runs supermarkets, India’s largest consumer electronics chain store, a cash and carry wholesaler, fast-fashion outlets and an online grocery store called JioMart. It reported 1.63 trillion rupees ($22 billion) in revenue in the year through March 2020. The unit operates almost 12,000 stores in nearly 7,000 towns.

 

Gautam

Team StratFront
Feb 16, 2019
11,643
7,084
Tripura, NE, India
WTF is happening ?!?! :eek: :eek:

Reliance Industries offers Amazon $20 billion stake in retail arm: Report

Updated: 10 Sep 2020, 01:13 PM IST
By Bloomberg

A deal, if successful, would not only create a retail behemoth in India but will also turn Jeff Bezos and Asia’s richest man from rivals into allies in one
of the fastest-growing consumer markets in the world
View attachment 17690

Indian billionaire Mukesh Ambani’s Reliance Industries Ltd. is offering to sell a roughly $20 billion stake in its retail business to Amazon.com Inc., according to a person with knowledge of the matter. Amazon has held discussions about investing in the conglomerate’s Reliance Retail Ventures Ltd. unit and has expressed interest in negotiating a potential transaction, the person said. Mumbai-based Reliance Industries is willing to sell as much as a 40% stake in the subsidiary to Amazon, the person said, asking not to be identified because the information is private.

A deal, if successful, would not only create a retail behemoth in India but will also turn Jeff Bezos and Asia’s richest man from rivals into allies in one of the fastest-growing consumer markets in the world. At $20 billion, the deal would be the biggest ever in India as well as for Amazon, according to data compiled by Bloomberg.

Shares of Reliance Industries extended gains and touched an all-time high after the Bloomberg News story. The stock surged 4.2% as of 12:08 p.m. in Mumbai. The Indian rupee rose as much as 0.5% to 73.1588 per dollar on expectations of more capital inflows.

In India, where a lot of people still shop in tiny street-corner stores, the deal could be Amazon’s way of acknowledging that it needs a locally-entrenched partner with a strong on-the-ground presence. For Amazon, Reliance would provide a brick-and-mortar component to its ambitions in a country where online purchasing still accounts for a minuscule share of an estimated $1 trillion retail market.

Amazon hasn’t made any final decision on the size of its potential investment, and talks could still fall apart, the person said. A representative for Amazon declined to comment.

“As a policy, we do not comment on media speculation and rumors," a Reliance spokesman said in an emailed response to Bloomberg News. “Our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures in compliance with our obligations."

A deal with Amazon would give further credence to Ambani’s ambitions to create an e-commerce giant for India akin to China’s Alibaba Group Holding Ltd. Reliance Retail already lured about $1 billion from Silver Lake Partners, while U.S. private equity firm KKR & Co. is in advanced talks to invest at least $1 billion, and L Catterton is also considering investing, Bloomberg News reported Wednesday.

The investment in Ambani’s retail ventures comes after he raised $20 billion selling stakes in his technology venture -- Jio Platforms Ltd. -- to investors including Facebook Inc. and Google. The billionaire appears to be seeking to repeat that fundraising strategy with his retail business.

Reliance Retail -- a unit of the energy-to-telecommunications conglomerate Reliance Industries -- runs supermarkets, India’s largest consumer electronics chain store, a cash and carry wholesaler, fast-fashion outlets and an online grocery store called JioMart. It reported 1.63 trillion rupees ($22 billion) in revenue in the year through March 2020. The unit operates almost 12,000 stores in nearly 7,000 towns.

Reliance denies this report :

 

Sathya

Senior member
Dec 2, 2017
2,009
1,019
India
Post corona, many low to middle people stayed home.. Until their money got over..

Some brave hearts took the risk and did the work only to spend even more when wine shop opened.

People started getting loans, getting into tough spots.

Many companies cut down their employees.

Heck even hospital s have reduced employees,

Those sectors which are uet to open , their employees are struggling to earn anything. .

I find many people roaming around for jobs. Some to get loan.

Think covid impact is getting reflected now.

I think Govt should have more focus in economy.
 
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Ashwin

Agent_47
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Nov 30, 2017
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vstol Jockey

Professional
Dec 1, 2017
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New Delhi
Forex are rising cause RBI is selling rupee to hoard dollar. economy is a disaster. Joker need to put money in every person bank account directly. Specially rural people , cause they are the only one who can get the demand going at this point and are probably the only one keeping economy afloat. Youth ka future to chala gaya tel lenay.
And why is RBI selling rupee to hoard Dollars? Because we have a very high inflow of Dollar. Did you notice that Rupee is stable even after such bad economic condition due to lockdown effect?
 
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Nikhil

nik141993
Dec 1, 2017
477
269
India
And why is RBI selling rupee to hoard Dollars? Because we have a very high inflow of Dollar. Did you notice that Rupee is stable even after such bad economic condition due to lockdown effect?
Rupee stability compared to dollar has more to do with dollar weeknees , nothing to do with rupee. He need to make sure that everyone , has certain amount of money so that there basic needs can be met. Even a thousand rupee per family, can do the trick and save people from going Hungary. harami won't even do that.
 

Sathya

Senior member
Dec 2, 2017
2,009
1,019
India
Rupee stability compared to dollar has more to do with dollar weeknees , nothing to do with rupee. He need to make sure that everyone , has certain amount of money so that there basic needs can be met. Even a thousand rupee per family, can do the trick and save people from going Hungary. harami won't even do that.
Money in the bank is not good idea...
Free money won't be worth.
Drunkard s will happily finish it.

I think it's job that s sustainable .
Manybare eager to do job.

Creating and distributing job is essential..

I hope indian IT companies do some thing where people graduates can buy PC and work from home to earn.

Uneducated can be employed to do railway , airway or even roadway works as we can utilize the restrictions of service to upgrade or lay new lines.

We have to take it whole new level to employ more people. Few lakhs won't cut it.

Best time to get cheap labor and finish off the infrastructure or other essential works.
 
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Nikhil

nik141993
Dec 1, 2017
477
269
India
Money in the bank is not good idea...
Free money won't be worth.
Drunkard s will happily finish it.

I think it's job that s sustainable .
Manybare eager to do job.

Creating and distributing job is essential..

I hope indian IT companies do some thing where people graduates can buy PC and work from home to earn.

Uneducated can be employed to do railway , airway or even roadway works as we can utilize the restrictions of service to upgrade or lay new lines.

We have to take it whole new level to employ more people. Few lakhs won't cut it.

Best time to get cheap labor and finish off the infrastructure or other essential works.
Suit boot Traitor days are numbered, you can keep defending the scum & his cronies. but he is going down.
Some have already started leaving the sinking ship.
 

Nikhil

nik141993
Dec 1, 2017
477
269
India
Agriculture bill is the last nail in this govt coffin. trying to destroy Mandis & MSP to profit there corporate cronies. making sure farmers specially small land holders remain vulnerable to market forces & have to sell there land due to distresse down the line.
Whole apparatus is trying to fool the farmers that MSP will not go which is a lie. Ultimate goal is to get rid of MSP. How? First modi cronies will buy product at higher price than MSP, cutting Mandis all together. When Mandis where MSP is guaranteed are destroyed and market is dominated by big corporate, lower the prices since they are not subjected to MSP but market forces. distressed farmers would have no option other than to sell land. Same trick was done in US and France and is happening in india as we speak.
lage raho
umeed pe hi duniya kayam hai......
Lage raho, umeed lol . He has already dig the hole for himself and he will be sleeping in it soon.