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The nonferrous metals industry is a key sector in the Indian economy as it meets the requirements of a wide range of key industries including engineering, electrical and electronics, infrastructure, automobile and automobile components, packaging etc. |
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This report focuses on four major nonferrous metals zinc, lead, nickel and tin. |
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Industry Structure | ||
| The Indian nonferrous metals industry comprises the primary, secondary downstream segments. | |||
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Primary producers are those players who process the mined ore to obtain the primary metal. This metal is commercially available in the form of rods, ingots, cathodes, wires etc., Secondary producers are those players who manufacture value added products like foils, extrusions, dry batteries, castings etc., either by procuring the metal from the primary producers or from scrap. |
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| The domestic industry is characterized by the presence of only a few players in the primary segment. | |||
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The zinc industry is duopolistic in nature (presence of two players) and the lead industry monopoly in nature. In the case of tin, there are virtually no players in the primary segment. Similarly, in the case of nickel also there are no players in the domestic context. However, in the secondary and downstream segments there are many players both in the organized and in the unorganized sectors. |
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| Government Regulations | |||
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This industry has been a witness to many divestment activities by the government since the commencement of the current year. One of the first steps in this regard was the divestment of its stake of 51.0 percent in Bharat Aluminium Company (BALCO) to Sterlite Industries. Currently, the government is in the final stages of its divestment process in the copper and zinc segments (through divestments of its stake in Hindustan Copper Limited and Hindustan Zinc Limited). |
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Budget 2001 – 02 did not have any wide ramifications for the industry. The removal of surcharge on customs duty resulted in a decline in the effective customs duties. |
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| The LME Linkage | |||
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The prices in the domestic nonferrous metals industry normally follow the trends in the London Metal Exchange (LME), in varying degrees, subject to the domestic demand-supply mismatch. However, one exception to this is zinc industry, where, Hindustan Zinc Limited (HZL) exerts a considerable degree of influence on the domestic prices by virtue of being the only integrated player. |
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| Publisher : Scope Marketing & Information Solutions (P) Ltd | |||
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Source : www.researchandmarkets.com |
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