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The steelmaker won a state government auction for the Rengalaberha North-East Extension and Nuagan West iron ore block on Wednesday by offering a 111.15% premium over the base price, they said. View More
Mumbai: Jindal Steel has secured one more iron ore mine in Odisha with estimated reserves of nearly 38 million tonnes, people in the know told ET. The steelmaker won a state government auction for the Rengalaberha North-East Extension and Nuagan West iron ore block on Wednesday by offering a 111.15% premium over the base price, they said. "This mine has a mix of high-grade and low-grade iron ore, but nearly 29 million tonnes of this are high-grade fines and some lumps which have Fe (iron) content of around 60%," one of the people said. "Because the Fe content is high, we can use the iron ore directly in furnaces or for making sinter and pellets," the person said. Including the low-grade ore, the mine has an average Fe content of 57.87%. The company did not respond to a request for comment till press time Wednesday. On Tuesday, ET reported that the company won the Thakurani A1 iron ore block that has reserves of more than 50 million tonnes. In an exchange filing Wednesday, Jindal Steel confirmed that it won this block in Odisha's Keonjhar district. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
Oil prices above $100 per barrel, rising fuel costs for consumers and shortages of metals and petrochemicals refined in the Gulf region could hurt automakers. View More
watch nowVIDEO4:4204:42The risks of the Iran war to the global auto industryAutos The auto industry keeps getting hit by supply constraints at a time when it is making some of the biggest transitions in its more than century-long history. The war in Iran could be just the latest of those issues. Though the region is not a major maker of automotive parts, it does produce key resources such as oil and aluminum. About 20% of the world's oil travels through the Strait of Hormuz, according to the U.S. Energy Information Administration, a major shipping artery that is bordered on two sides by Iran and Oman. Oil prices surged above $100 a barrel on Monday with concerns about supply as the war continues. Drivers are already paying more at the pump. Gas in Iowa, for example, is now above $3 per gallon, according to GasBuddy analyst Patrick De Haan. That's still a ways from the peak prices hit in 2022, De Haan said. But there have been two 12 cent increases nationwide in the past two weeks. That's two of the largest single day increases going back to 2005 in terms of nominal increase in cents per gallon, according to GasBuddy. "I think it's the pace of the increases this week that's really catching Americans off guard, and that might be making them feel a little bit nauseous about the prospect of driving, getting out, road trips," De Haan said. Diesel and jet fuel prices are rising as well, which puts pressure on shipping and freight, he added. High oil prices stand to drive up the cost of petrochemicals, which is what plastics are made of. Some estimate that about 30% of the parts on a car are plastic. "It's not just raw crude coming out [of the Strait]," said Dan Hearsch, managing director at AlixPartners. "There's a lot of refining capacity. So ethylene, propylene, a lot of the aromatics, also ship out of that region. Those are not ports that are well connected over land. So it's kind of by ship or by not."That region is also a large producer of aluminum, particularly in Bahrain and the United Arab Emirates. Like plastic, aluminum has become an increasingly important material for car manufacturers, in part because it is lighter than steel. Lightweighting vehicles is a top priority for automakers trying to improve fuel efficiency or offset battery weight in electric vehicles and hybrids. Bahrain and the United Arab Emirates account for 9% of the world's total aluminum smelting, according other AlixPartners. The U.S. imports between 80% and 90% of its aluminum, and about 20% of it comes from the Gulf.The concern for automakers and suppliers is that even though the region is not a large producer of auto parts per se, it could be a chokepoint for key materials that form those parts. Duncan Wood, a visiting fellow at the Washington, D.C.-based think tank Wilson Center, said there are reasons to think these high prices won't last, and that oil will not rise to $200 per barrel, as some have speculated. "Although the Strait of Hormuz is responsible for so much of the traffic, you will see other countries beginning to boost production," he said. "That will help. You've already seen the Saudis trying to move some of their production away from that channel to other outlets to world economies. Probably the Russians will try to replace a lot of the Iranian oil in the Chinese market."But for the auto industry, a further step back reveals a larger and troubling pattern: repeated global shortages the industry doesn't have a playbook for. The pandemic brought raw materials shortages, a microchip deficit and oil spikes, while the Ukraine war cut off an important source of wire harnesses â a key component in cars. "Since Covid, some very fundamental things seem to have broken," Hearsch said. Meanwhile, geopolitical tensions are rising. A second chip shortage erupted in 2025 when the Netherlands-based chipmaker Nexperia found itself at the center of a trade standoff between the European Union, the U.S. and China. "What you had was years, even decades of, of really relative stability," he said. "The global supply chain, the world is flat. All of this was was pretty stable. The disruptions were kind of long cycle and everybody was interested in cooperating."Automakers are facing the fallout from conflict in Iran while already paying out billions in tariff costs due to trade disputes. These disruptions are stretching the industry's resources at a time when it is trying to enact two fundamental and interrelated transitions: making profitable electric vehicles and rolling out new hardware and software."It's not just perception," Hearsch said. "It's not just how it feels. These things are continually disruptive. There's no silver bullet for predicting or dealing with all of these crises, because they each have some unique thing that you would have to do differently. That's what we're experiencing." Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
The block, covering 202 hectares, was secured at a premium of 101.20 per cent, highlighting the strong demand for iron ore resources in the state View More
Shares of Tata Steel, Reliance Industries, Wipro and Sun Pharma gained, with Reliance rising after Donald Trump said it would back a new Texas refinery. Kotak Mahindra Bank, ICICI Bank and Apollo Hospitals declined View More
The Rs 255 crore Rajputana Stainless IPO entered its final bidding day with modest grey market interest. The issue was subscribed 42% by the second day, led mainly by institutional investors. With a small grey-market premium and mixed investor demand, the IPO is drawing cautious attention ahead of its expected listing. View More
The Rs 255-crore Rajputana Stainless IPO was subscribed 1.12 times against the 2.09 crore shares on offer by the final day of bidding. Demand was largely driven by Non-Institutional Investors (NIIs), who subscribed 2.59 times their allocated portion, while the retail investor segment recorded a relatively muted subscription of around 27%. In the grey market, the IPO is currently commanding a premium of about Rs 1, or nearly 1% above the upper price band of Rs 122, suggesting an expected listing price of around Rs 123. The IPO is priced in the Rs 116–Rs 122 per share band, aiming to raise approximately Rs 255 crore through a combination of a fresh issue and an Offer for Sale (OFS). The offer comprises a fresh issue of about Rs 179 crore along with an OFS of up to Rs 76 crore by existing shareholders. The company plans to list its shares on both BSE and NSE, with a tentative listing date of March 16. Rajputana Stainless IPO GMP: As of March 11, the IPO is trading at a modest grey market premium of around Rs 1, or nearly 1% above the upper price band of Rs 122, indicating a possible listing price of about Rs 123. However, the grey market premium (GMP) is an unofficial gauge derived from informal trading and should not be relied upon as a reliable indicator of the stock’s actual listing performance. Live Events Rajputana Stainless IPO subscription status By the final day of bidding, the Rajputana Stainless IPO was subscribed 1.12 times overall, according to data available on the BSE. The Retail Individual Investors (RIIs) segment recorded a 27% subscription against the 1.31 crore shares reserved for retail investors. The Non-Institutional Investors (NIIs) category saw stronger demand, with the portion subscribed 2.59 times for the 56.43 lakh shares on offer. Meanwhile, the Qualified Institutional Buyers (QIBs) segment was subscribed 2.51 times against the 20.90 lakh shares allocated to them. About Rajputana Stainless Founded in 1991, Rajputana Stainless manufactures a range of long and flat stainless steel products, including billets, forging ingots, bright bars, and flat bars. These products are used across industries such as automotive, engineering, forging, and pipe manufacturing. The company runs an integrated manufacturing facility and mainly serves business-to-business (B2B) customers across various industrial segments. The proceeds from the fresh issue will primarily be used to expand its manufacturing facility in Gujarat, with a focus on forward integration into stainless steel seamless pipes. A portion of the funds will also be used to repay or prepay certain borrowings and for general corporate purposes. On the financial front, the company has maintained steady profitability growth. For the six months ended September FY26, Rajputana Stainless reported revenue of Rs 501 crore and a profit after tax of Rs 24.4 crore. In FY25, it posted revenue of Rs 932 crore and net profit of Rs 40 crore, reflecting gradual improvement in margins in recent years. The industry outlook remains positive, as India is among the largest producers and consumers of stainless steel globally. Domestic demand is expected to grow steadily, supported by infrastructure development, manufacturing expansion, and rising industrial activity. However, the sector also faces risks, including volatility in raw material prices and competition from low-cost imports, particularly from countries such as China and Indonesia. Should you subscribe? Brokerages tracking the issue have largely recommended subscribing for long-term investment, citing the company's integrated manufacturing setup, diversified product portfolio and steady financial performance. Adroit Financial Services has advised investors to subscribe to the IPO for long-term investment, noting that the company’s expansion into value-added products such as stainless steel seamless pipes could improve margins and strengthen its market position. Similarly, Anand Rathi Research believes the IPO is fairly valued at around 21 times post-issue earnings at the upper price band. The brokerage highlighted the company’s consistent track record and stable financial metrics and recommended that investors subscribe to the issue. That said, analysts caution that the stainless steel industry remains cyclical and vulnerable to cheaper imports, making earnings sensitive to commodity price swings and demand cycles. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.) .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our ETMarkets WhatsApp channel) (You can now subscribe to our ETMarkets WhatsApp channel)
The steelmaker won the block by committing a premium of 101.20% to the government. Bidding for the mine, conducted online on Tuesday, started at a premium of 101.05%. View More
Mumbai: Jindal Steel has emerged as the preferred bidder for the Thakurani A1 iron ore block in Odisha's Keonjhar district, sources aware of the development told ET. The mine is expected to strengthen the company's iron ore supply as it ramps up capacity at its plant in Angul. The steelmaker won the block by committing a premium of 101.20% to the government. Bidding for the mine, conducted online on Tuesday, started at a premium of 101.05%. The block has reserves of more than 50 million tonnes (mt) of iron ore, and Jindal Steel is likely to be allowed to mine 1.5-2 mt a year, the sources said. The company will have up to three years to develop the mine and start operations. The Thakurani A1 mine was part of a recent auction round for 12 mineral blocks notified by the Odisha Directorate of Mines and Geology in December 2025. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
Highlighting how global conflicts can directly impact countries dependent on imports, Agarwal said India must reduce its reliance on overseas resources and build self-sufficiency by enabling domestic production. View More
New Delhi: As the ongoing war in West Asia disrupts global supply chains, impacting Indian energy imports, Vedanta Chairman Anil Agarwal has called for urgent measures to unlock the domestic natural resource potential to strengthen the country's energy and mineral security. Highlighting how global conflicts can directly impact countries dependent on imports, Agarwal said India must reduce its reliance on overseas resources and build self-sufficiency by enabling domestic production. "It is painful to see India face the adverse consequences of a war we have nothing to do with," Agarwal said in a statement, referring to global disruptions that impact commodity prices and supply chains. "We import nearly 90 per cent of our oil, 95 per cent of our copper and 99.5 per cent of our gold, despite the fact that the mother earth has given India one of the best geologies," he said in a statement. Drawing from over four decades of experience in the minerals, metals and oil industry, Agarwal argued that India's natural resources, if developed efficiently, could dramatically reduce import dependence while creating jobs, industries and exports. Live Events Recounting his own entrepreneurial journey, Agarwal said he arrived in Mumbai from Bihar at the age of 19 and built Vedanta from scratch. Over the years, the company acquired major assets including Hindustan Zinc, BALCO, the oil and gas business of Cairn India, and Sesa Goa Iron Ore, with the aim of significantly expanding production. According to Agarwal, Vedanta's operational turnaround of some of these assets demonstrates what private enterprise can achieve. "We increased zinc production ten times and aluminium twenty times. As a result, more than 1,000 companies have emerged around these value chains," he said, adding that Vedanta has contributed Rs 4.5 lakh crore to the national exchequer in the last decade. Agarwal also outlined ambitious targets for the future. In oil and gas, the company aims to produce one million barrels per day, while in iron ore, he envisions production of 100 million tonnes, equivalent to roughly a third of India's current output. He emphasised that India needs globally competitive mining champions. "Vedanta should be for India what Rio Tinto and BHP are for Australia or Vale for Brazil. And there should be many more Vedantas," he said. However, Agarwal stressed that policy reforms and a change in regulatory mindset are critical for the sector to flourish. He called for simpler regulations, greater trust in businesses and a shift towards self-certification and audit-based oversight rather than prolonged approvals and litigation. "The system must stop creating hurdles. Businesses need recognition and respect, and the benefit of doubt should go to entrepreneurs," he said. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
Oracle's $300 billion deal with OpenAI established it as a major player in AI cloud computing alongside Amazon, Google and Microsoft. View More
In this articleORCLFollow your favorite stocksCREATE FREE ACCOUNT watch nowVIDEO5:4405:44Inside Oracle's risky AI betTech Oracle reports third-quarter earnings on Tuesday, and it will be an unofficial test for the artificial intelligence trade. Following the announcement of a $50 billion financing plan at the beginning of February that included debt and equity, investors have been eager to understand the pace of dilution for current stockholders. "The cadence matters," said Gil Luria, equity analyst at DA Davidson, told CNBC.Of all the hyperscalers that are leaning into AI cloud computing, Oracle has had to rely the most on financing measures to fund its ambitious data center build-out plans. Its latest debt raise included a $5 billion convertible preferred offering and roughly $25 billion in senior notes at different maturities, according to a credit investor who spoke to CNBC. The deal was oversubscribed, indicating strong demand. Oracle's ability to deliver data center assets to OpenAI, its main customer, is of utmost importance to investors. Late Friday, Bloomberg reported that talks to expand its deal with OpenAI in Abilene, Texas, fell through. A source familiar with the situation told CNBC that Oracle's deal to deliver eight sites to OpenAI remains on track and on schedule. The source asked not to be named in order to discuss a confidential matter.OpenAI executive Sachin Katti later posted on X that while it contemplated expanding its presence in Abilene, it would look to other markets across the U.S. "We considered expanding it further, but ultimately chose to put that additional capacity in other locations," Katti wrote. "Today we have more than half a dozen sites under development across multiple states, including the site we're building with Oracle in Wisconsin, where the first steel beams went up just this week." Katti is in charge of spearheading OpenAI's compute infrastructure and previously held the role of AI chief and chief technology officer at Intel. Read more CNBC tech newsHow the Iran war and rising energy prices are threatening semiconductor demandKevin Mandia sold his cybersecurity company to Google in 2022. He has a fresh $190 million for a new ventureMusk's xAI wants to build a power plant in Mississippi. Regulators planned a key meeting on Election Day, 200 miles awayOracle is building yesterday's data centers with tomorrow's debt The market has become hypersensitive to any developments tied to Oracle's $300 billion deal with OpenAI.News of the deal initially sent Oracle's stock up by 35% last September, its biggest intraday gain since 1992. The deal reinforced Oracle's position as a major contender in the AI cloud computing space, putting it alongside Amazon, Google and Microsoft.However, in late fall, Oracle surprised the market by raising a significant amount of debt, fueling investor fears that its AI build-out would be costly and put pressure on its balance sheet. Oracle's 5-year credit default swaps widened as bond investors were skeptical of the enterprise software company's ability to hold on to its investment-grade credit rating, currently two notches above junk. Credit default swaps are like insurance for investors, with buyers paying for protection in case the borrower can't repay its debt. Bond investors told CNBC that they've become a popular way to hedge the risk tied to the AI trade.Wall Street is looking for a clear read on the return on investment of Oracle's AI bet when the company reports earnings Tuesday, in addition to any future capital raises.Analysts have also speculated that the company may undergo consolidation measures to streamline costs. TD Cowen wrote in a note to clients on Jan. 26 that "our channel checks indicate that Oracle is evaluating multiple paths forward to address financing questions including a 1) a RIF (Reduction in workforce) of 20-30K employees which could drive ~$8-10B of incremental free cash flow." Analysts there added that divestitures and securing vendor financing deals could also be in the cards.Watch the video to learn more. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
Scores of small Indian steel producers are warning of significant production cuts, with some facing a complete halt, due to escalating Middle East conflict disrupting gas supplies. This disruption, coupled with rising coal costs fueled by geopolitical tensions, is severely impacting the margins of these manufacturers, particularly in Gujarat. View More
Scores of small Indian steel producers have warned of production cuts as the escalating Middle East conflict disrupts gas supplies to the world's biggest producer of the alloy after China, industry officials said. "We are looking at a 50% production cut as of now and a complete halt ahead, if supplies don't improve within a week," Yogesh Kanakiya, director at Triveni Iron and Steel Industries , told Reuters. Triveni Iron and Steel Industries is based in the western state of Gujarat, the country's largest gas-consuming region, which relies on the Middle East for much of its liquefied natural gas. Several small steel mills in Gujarat depend on imported LNG. Most gas producers, including Gujarat Gas declared force majeure last week to restrict gas supplies to industries. Live Events "We work on wafer thin margins and our margins have shrunk," said Anshum Goyal, managing director and promoter at Friends Steel Group in Gujarat. "We are concerned over supplies and it is affecting our decision-making in terms of prices we need to keep." Producers in other parts of India are also grappling with rising coal costs fuelled by geopolitical tensions, adding pressure on margins. About 6% of India's steel output uses gas-based direct reduced iron, or DRI, while roughly 50% depends on coal-fired blast furnaces. "The ongoing geopolitical tensions have led to roughly a 10-12% increase in coal and freight costs," said Rahul Mittal, chairman of the Sponge Iron Manufacturers Association. India produces around 50 million metric tons of sponge iron annually, largely used by secondary steel producers as raw material. The impact of falling gas supplies has been exacerbated by sharp rises in imported coal prices. South African thermal coal prices at Indian ports jumped by around 10-13% last week to a three-year high due to firmer freight rates and broader Middle East tensions, commodities consultancy BigMint said. Coal buying in India has become more cautious amid higher freight costs and elevated global coal prices, said Vasudev Pamnani, director at Gujarat-based coal trader i-Energy Resources. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)