According to a company official the largest coal mining company of the country, Coal India Ltd has more coal to offer through e-auctions than the actual demand.
 
 The source said requesting anonymity that “The total coal allocated at e-auctions during the first five months of the current fiscal is 20.10 million tonnes, against an offered quantity of 50.29 million tonnes.”
 
 The official said this indicates that the coal major has more stocks to offer than the actual demand, which, however, is rising. The situation was just the opposite last fiscal, when 13.05 million tonnes were allotted for e-marketing, against an allocated of 10 million tonnes.
 
 The demand rose after CIL reduced the floor price of coal sold through e-auction from 30 percent over and above the notified price to 5%.

t is reported that Indian Railways have decided to levy a busy season surcharge of 5% to 7% on transportation of all products. Under the decision, the transportation of goods on trains will be costlier by 5% to 7 % with effect from October 1st
 
 According to a senior railway official, the imposition of busy season surcharge is an annual exercise and will remain in force from October to March 2009. While the levy of 5% is imposed on transportation of coal and coke, other products would be charged 7%.
 
 Termed as dynamic pricing policy, the decision aims to overcome the effect of the recent fuel price increase. Diesel constitutes 17% of the railway’s total operating cost.
 
 Following the diesel price hike in June this year, Railways had planned to hike freight charges for a host of commodities including ores and minerals, petro products, coke and coal, fertilizers and food grains by 5% to 7% by imposition of a special supplementary surcharge. However it had to rollback the special supplementary levy under pressure to keep in line with the government’s strategy of containing inflation.

HRC – Structural grade
 Some major deals for about 50,000 tonnes have been reported last week CFR Mumbai from CIS sources
 
 CIS
 USD 720-USD 740
 CNF Mumbai
 
 HRC for cold rolling
 The situation prevailing in the previous week continued and no major transaction was reported last week. Indian buyers are looking at USD 700 levels, which are not existing now.
 
 China
 USD 750 – USD 760
 CNF India

Indian mining industry has assured adequate supply of iron ore to Chinese steel mills, which are reported to have boycotted the raw material’s supply from Brazilian mining major Vale after it asked for a price revision in the contracted prices for 2008-09.

Indian miners have requested the government to abolish the 15 per cent export duty and reduces freight charges so as to facilitate the trade.

“We are ready to do our bit to relieve the Chinese mills and will try to fill the gap created after the steel association there decided not to import iron ore from Vale,” said Federation of Indian Minerals Associations Secretary General R K Sharma.

Chinese steel body CISA Executive Secretary-General Shan Shanghua was quoted by country’s online news portal Chinastakes.com, as saying, “China will not import any iron ore from Vale as the Brazilian company was in unilateral breach of the contract.”

Earlier this year, Vale had agreed on a long-term contract with Chinese steel companies for supply of iron ore for the present year. However, it recently asked for an upward price revision in the contracted prices, which sparked discontent in the Chinese steel sector.

“Chinese steel makers won’t accept Vale’s price hike,” he said and added they would look for domestic miners and other alternate options.

Indian miners exported over 90 million tonnes of iron ore to Chinese steel mills in the spot market in the last financial year.

However, with the government imposing a 15 per cent ad valorem duty on iron ore exports in June, miners say the shipments have declined by nearly 30 per cent.

“If the iron ore industry is to be given a fillip, the government will have to withdraw the export duty and lower freight charges,” said an Indian merchant miner not willing to be quoted.

According to FIMI, the apex body of domestic iron ore miners, removal of export duty would add foreign reserves to the tune of about $5 billion to the government coffers by the end of this fiscal.

Chines steel companies import about 100 million tonnes iron ore from Brazil every year.