Commodities volatile on European air crisis

 LONDON: The commodity markets were roiled this week as severe disruption to global air travel impacted supply and demand for raw materials such as oil and metals, analysts said. A volcanic eruption in Iceland spewed ash across Europe, forcing airplanes from the skies for safety reasons, with the industry badly hit and only getting back on its feet by Friday.

Inland freight subsidy for cement plants

KARACHI: The disqualification of the Southern Cement plants for claiming Inland Freight Subsidy was removed on Tuesday, paving way for product originating within minimum of 100 kms from seaport, also to qualify for subsidy.
According to cement producers, the courts passed ruling on Tuesday morning to the effect that the disqualification on products originating within 100 kms from seaport was removed till the final disposal of the case.A senior official at a cement company said that the companies in the Southern zone could now submit documents and claim subsidy; the final outcome of which would be determined on the disposal of the case. All shipments after March 29, 2010, would be eligible.

Wheat procurement suspended in Dadu

 DADU, April 9: Food officials suspended wheat procurement at the designated centres of the district on Friday to protest against threats allegedly hurled on the district food controller (DFC) by State Minister for Food and Agriculture Rafique Ahmed Jamali and his brother forcing them to provide more gunny bags.

They gathered outside the DFC office in Dadu and demonstrated against the two.

Tetra milk price raised by Rs4 per litre

KARACHI: A leading tetra milk producer has given a pre-budget shock to its consumers by pushing up the price of one-litre pack by Rs4 to Rs62.

After announcing price hike by the main player other producers will follow suit shortly.

Gold hits 4-week high

LONDON: Gold rose to four-week highs on Tuesday and euro-priced gold hit a record peak as investors bought the metal as an alternative to paper currencies amid persistent concerns over smaller euro zone economies.

This helped dollar-denominated gold shrug off a 0.75 per cent rise in the dollar’s value versus the euro. Spot gold was bid at $1,136.45 at 1427 GMT against $1,129.70 late in New York on Monday.

Sindh jewellers to go on one-day strike

Jewellers protesting against spate of robberies in Karachi, Sukkur

KARACHI: Jewellers at Karachi Sarraf bazaar, the biggest gold market in the country, will stage a day-long strike on Saturday to protest against a spate of robberies at their shops, an official of the jewellers association said.

“During the last two months, jewellery worth more than Rs75 million has been looted in six armed robberies,” Haroon Chand, president of All Sindh Sarraf and Jewellers Association, told The News.

New projects push cement sales up

KARACHI: The start of construction work on new small apartments’ projects and large scale renovation of houses have pushed up the local demand and sales of cement.
Around 35-40 new projects of small apartments have been launched in Karachi since Ramazan last year. Many people have started renovation of their houses as they think that it is the right time as steel prices are comparatively low this year along with fall in cement prices.

Inequity in freight subsidy irks cement makers

KARACHI: The All Pakistan Cement Manufacturers Association (APCMA) and some exporters have criticised the Trade Development Authority of Pakistan (TDAP) for disqualifying all those plants for inland freight subsidy which are located within 100-km of the seaport.
The TDAP last Friday issued a public notice allowing the inland freight subsidy on cement exports to only those plants which are located at least 100 kilometres away from the seaport. This condition has effectively eliminated all the cement plants which are located in South to avail this benefit.

Steel rates seen falling on cut in import trade price

KARACHI: Imported steel prices are likely to go down by Rs2,500 to Rs4,000 per tons after the Custom authorities have agreed to reduce the import trade price, steel merchants’ representative said.

The Directorate General of Customs Valuation, last week, had unilaterally raised the import trade price commonly known as ITP by substantial margin. However, after a marathon between the customs officials and members of Steel Merchant Association it was decided to cut the ITP by 18 to 24 percent on different qualities of steel. It was decided to reduce the ITP on hot rolled coils by 19.3 percent to $505 per ton from earlier slab of $626 per ton. While ITP on cold rolled coils and galvanized steel was cut by 20.5 percent to $542 per ton and 24 percent to $590 per ton respectively.

Commodities mostly fall in choppy trading

LONDON: Commodities mainly fell this week as traders digested an EU plan to tackle the Greek debt crisis, alongside news of moderately weaker economic growth in the United States, a key consumer.

“Most commodity markets (were) lower, weighed primarily by broader market concerns,” said Barclays Capital analysts in a research note to clients. They added: “Lingering concerns on sovereign risk in the euro area and a smattering of mixed US macro-economic data have all affected the trajectory of commodity price movements.” European leaders agreed in Brussels on Friday to rescue debt-ridden Greece, but markets remained cautious amid lingering concerns over the deal. Meanwhile, data showed on Friday that the US economy grew at a slower pace than previously thought in the fourth quarter, as business and consumer spending slackened amid a fragile recovery from recession. The world’s largest economy grew by 5.6 per cent in the October-December period, the Commerce Department said, revising downward an earlier estimate of 5.9 per cent growth in gross domestic product.

Petroleum ministry to offer new exploration blocks in June

KARACHI: The Ministry of Petroleum will offer new blocks in June to expedite exploration of oil and gas reserves as the country fights severe energy crisis, Secretary Petroleum, Kamran Lashari, said on Thursday.

The blocks will be offered to local and international exploration production companies, just months after 40 leases were auctioned under the new petroleum policy, he said here on sidelines of Shell Eco-Marathon’s launching ceremony.

Opec to keep output at current levels

 RIYADH: With crude markets undergoing a massive transformation Opec had little option but to maintain output at current levels. As prices drift downwards, the month-long rally in the crude markets is finally subsiding.
The correlation between financial markets and crude, too, continued to impact the process. Strengthening dollar and the worries on the state of the Greek economy with its drag down effect on the global scenario – all cornered the crude markets to finally wink.

July-Feb: Govt earns Rs214bn from petroleum sector

ISLAMABAD: The government earned about Rs214 billion on lower oil import bill and collection of taxes on the sale of petroleum products in the first eight months (July-Feb) of 2009-10, official data showed.
Of the total Rs214 billion, the government saved about Rs55.5 billion on oil imports because of lower international prices despite higher import of refined petroleum products and lower crude imports.

A sum of Rs158 billion was collected in the eight months as different taxes on the sale of petroleum products.

Palm oil imports fall by 20 per cent

Saturday, January 09, 2010
ISLAMABAD: Palm oil imports into the country declined by 19.90 per cent during the first five months of current financial year as against the corresponding period of last year.

Palm oil imports during July-November (2009-10) were recorded at $470.544 million against the imports of $637.219 million during July-November (2008-09), according to provisional figures provided by Federal Bureau of Statistics.

Iran, Turkmenistan launch new gas line

Turkmenistan to sell up to 20bcm of gas a year to Iran

Thursday, January 07, 2010
DOVLETABAD GAS FIELD, Turkmenistan: Turkmenistan, Central Asia’s largest gas producer, launched a new pipeline on Wednesday that will more than double its gas sales to Iran.

Together with a pipeline to China launched last month, the new link will enable Turkmenistan to ship more gas to Iran and China combined than to Russia’s Gazprom which has dominated the region’s market for decades.

China pulls out of $40 billion Australia gas deal

SYDNEY: Chinese energy giant PetroChina Co. Ltd. has pulled out of a $40 billion deal to buy natural gas from a project off Australia, leaving Woodside Petroleum Ltd. looking for new customers.

PM asks Finance Ministry to check sugar price

ISLAMABAD: Prime Minister Yousuf Raza Gilani on Saturday took a serious note of media reports about the hike in sugar price and directed the finance minister to immediately convene a meeting of the committee on sugar.

He directed the minister to come up with recommendations to ensure easy availability of the commodity at reasonable rates throughout the country.

Sugar price have soared up to Rs80 per kg in last one week and its price hike is escalating on daily basis after reports of serious shortage of the commodity due to sharp decline in sugar-cane production this year. The sugar millers express the fear that it may go up to Rs90 per kg by end of the crushing season. — Ahmad Hassan.

Commodity markets stage rally in 2009

Sunday, January 03, 2010
LONDON: Commodity prices rallied in 2009 on keen demand and signs of global economic recovery, with oil soaring and gold striking record levels, while copper and sugar surged.

Many raw materials also rose this week in thin trade ahead of the New Year holiday weekend, with investors winding down for celebrations to usher in 2010.

Vietnam orders gold-trading floors shut by end-March

Sunday, January 03, 2010
HANOI: Vietnam, where many people see gold as a safe haven against economic uncertainty, has ordered public gold-trading floors shut by March 31 because they rest on a “fragile foundation”.

The order affects about 20 gold-trading houses operated by banks and other firms, which have been running for more than two years, the state-run Vietnam News reported.

Five OGDCL directors removed

ISLAMABAD: The government has removed, with immediate effect, five members of the board of directors of OGDCL, the country’s largest oil and gas producer.

The action was taken amid a conflict of interest pointed out by intelligence agencies in the restructuring of the Pakistan State Oil board.