Daily Pour

Date: 01/06/2026   Issue No.: 3856/25-26

Compiled By: Aarti Ghag, Executive Officer - WR

B. Ramchandran, Chennai

IIF News

Greater Mumbai Chapter :

CHANGE IN TIME: As requested by BIS, the webinar will start at 4:00 PM. The rest of the details remain the same.

With Regards,

Mrs. Aarti Ghag

Executive Officer, IIF-WR

 7303511171

Thought of the Day

News Letter Supported By

Today's Top Raw Materials Headlines

*** India's met coke imports expected to climb to multi-year high in CY'26

*** India: Ferro silicon prices drop to 2-month low on muted demand; market waits for Bhutan's Jun offers

*** India: Domestic silico manganese prices inch down w-o-w amid limited bulk trade activity

*** India: 316 scrap prices rise w-o-w amid supply tightness, firm molybdenum costs 

*** Chinese Tin Ingot price tickup  

*** China negotiating with EU over planned steel tariff measures

*** Chinese Nickel cathode suppliers quote higher price  

*** Chinese Ferro Moly suppliers offer higher price

Raw Material News

Indian Rupee Firms on Eased Oil Fears

India Currency
The Indian rupee hovered near 95.5 per dollar, strengthening after the holiday break on reduced pressure from elevated oil prices and easing Middle East tensions. Optimism grew following reports that the United States and Iran were moving toward extending their ceasefire arrangement for 60 days while continuing negotiations over Tehran’s nuclear program. Crude prices declined on expectations that disruptions to energy flows through the Strait of Hormuz could ease if diplomatic talks progress further. Brent crude fell toward $92 per barrel and remained on track for its steepest monthly decline since 2020, offering some relief to oil-importing economies. Meanwhile, traders also pointed to likely dollar outflows linked to global equity index rebalancing as a near-term source of volatility for the Indian currency. The rupee has weakened roughly 5% since the conflict involving Iran escalated earlier this year and remained on track for a monthly decline.

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India and US Sign Critical Minerals Framework to Strengthen Rare Earth Supply Chains

India and the US have signed a new critical minerals framework agreement during the Quad foreign ministers’ meeting to strengthen rare earth and strategic mineral supply-chain security and reduce dependence on China. The agreement covers the full supply chain, including mining, processing, refining and recycling, as well as joint investment, infrastructure development and financing support. Officials said the partnership will support industries such as clean energy, semiconductors, electric vehicles and defense manufacturing. Amid China’s continued dominance in rare earth processing, both countries are accelerating efforts to build alternative supply chains and improve long-term resource security.

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Verde Magnesium Advances Romania Project to Become Europe's First Primary Producer in 25 Years

[SMM Magnesium Express] Verde Magnesium is advancing its Budureasa magnesium project in Romania, aiming to become Europe's first primary magnesium producer in 25 years. The project uses an aluminothermic reduction process with renewable energy and COâ‚‚ capture, claiming the world's lowest carbon footprint for primary magnesium. Mine restart is targeted for end-2026, with a 30,000 tpa smelter by 2030. Europe currently imports 100% of its magnesium, with China supplying 90% of global production.

Industry News

India's Passenger EV Market Set for Breakout Year; Sales Could Reach 400,000 Units in FY27

Automakers expand production amid surging bookings, with industry penetration expected to nearly double from FY26 levels if supply improves.

India's passenger electric vehicle market is poised for its strongest growth phase yet, with industry penetration expected to rise to around 8% in FY27 from about 4.2-4.5% in FY26, potentially pushing annual electric car sales close to 400,000 units.

The projected surge is being driven by a combination of rising fuel prices, improving charging infrastructure, expanding product portfolios and a growing recognition among consumers that electric vehicles are becoming economically compelling alternatives to conventional powertrains.

The momentum has also received support from the government's continued emphasis on energy security and cleaner mobility. Prime Minister Narendra Modi's repeated calls to reduce India's dependence on imported fossil fuels and accelerate the adoption of new-energy vehicles have coincided with a period of elevated crude oil prices, further strengthening the case for electrification.

India's passenger vehicle industry sold about 4.7 million vehicles in FY26, with electric cars accounting for around 200,000 units. Assuming overall industry volumes rise to 4.9-5.0 million units in FY27, an 8% EV penetration rate would translate into nearly 400,000 electric vehicle sales, effectively doubling the market within a year.

Increasingly, automakers say the challenge is no longer generating demand but meeting it.

Tata Motors Passenger Vehicles Managing Director Shailesh Chandra believes current EV penetration figures are being constrained by supply rather than consumer appetite.

"Right now it is at 5.5%. Potentially it is at 10% if the supply goes up because right now it is supply-constrained," Chandra said during a recent media interaction.

The country's largest electric carmaker is already seeing evidence of that demand shift. While EVs account for about 15-16% of Tata Motors' current sales mix, bookings have climbed to nearly 23%, suggesting that demand is running significantly ahead of available production.

According to Chandra, the recent increase in fuel prices has accelerated consumer migration towards alternative powertrains.

"What I rather anticipate more is that we see shifts in powertrain choices, which we are clearly seeing," he said.

The pace of change has surprised even industry participants.

"In the last two months, the jump has been two to two-and-a-half times of what it used to be. In the last 15 days, things have changed completely. It is even more sharper growth," Chandra added.

To address the growing demand, Tata Motors is working to raise EV production by around 50%, taking monthly output from roughly 10,000 units to about 15,000 units over the next few months.

At that run rate, Tata Motors would comfortably cross the 100,000-unit annual EV sales milestone, a first for any passenger vehicle manufacturer in India. If supply-chain bottlenecks ease and component availability improves, the company could potentially approach 150,000 EV sales annually.

"Frankly, if I was able to supply, my market share would have stepped up a bit. My market share is defined by supply," Chandra said.

The trend is visible beyond Tata Motors.

JSW MG Motor India Managing Director Anurag Mehrotra said passenger EV penetration has already increased from 5.7% in April to around 6.5% in May, reflecting the sharp increase in customer interest.

"By the end of the year, if everything goes well, it should be 8% or more," Mehrotra said.

He attributed the latest demand surge partly to the geopolitical situation in West Asia and the resulting increase in fuel prices.

"With the West Asia crisis, there has been a significant increase in demand for new-energy vehicles. I doubt that any of the industry was prepared from a supply-chain point of view," Mehrotra said.

The company is targeting annual sales of around 99,000 units, with electric vehicles, hybrids and other new-energy vehicles expected to account for between 50% and 70% of total volumes. Products such as the Windsor EV, Windsor Long Range, M9 and a series of upcoming launches are expected to underpin that growth.

Mehrotra said consumers are increasingly evaluating total ownership economics rather than simply upfront purchase costs.

"Consumers have understood the unit economics," he said, citing lower running costs, depreciation benefits and reduced operating expenses as key drivers of adoption.

Mahindra & Mahindra is also emerging as a major contributor to the industry's next growth phase. The company has been progressively increasing production following the strong market response to its born-electric SUVs, the XEV 9e and BE 6. Industry estimates suggest demand for the two models has exceeded initial expectations, prompting the automaker to ramp up capacity and shorten waiting periods.

Together, Tata Motors, JSW MG Motor and Mahindra are expected to account for the bulk of incremental EV volumes over the next 12–18 months, providing the manufacturing scale necessary for the industry to approach the 400,000-unit milestone.

The significance of FY27 lies not merely in the volume growth but in what it signals about the evolution of the market. For much of the last decade, automakers focused on convincing consumers to consider electric vehicles. Today, the conversation is increasingly centred on localisation, supplier readiness, charging infrastructure and production capacity.

If penetration reaches 8% and annual sales approach 400,000 units, India would add nearly 200,000 incremental electric vehicle sales in a single year, equivalent to the entire size of the passenger EV market just one year earlier.

For a segment that took nearly a decade to reach 200,000 annual sales, that would represent a defining moment in India's electric mobility journey.

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RBI Likely to Hold Rates at 5.25% Amid Global Uncertainty and Inflation Risks

The Reserve Bank of India is expected to maintain its benchmark policy rate at 5.25 per cent when the MPC concludes its three-day meeting on June 5, amid global uncertainties. Mounting geopolitical tensions, rising crude oil prices, and supply chain disruptions are influencing the cautious stance. The SBI economic research department projects inflation could stay above 5 per cent for the next three quarters, while GDP growth for FY26 is estimated at 7.5 per cent. The central bank may also consider alternative tools like Operation Twist if inflationary pressures intensify.

The Reserve Bank of India is widely expected to keep its benchmark policy rate unchanged at 5.25 per cent when the Monetary Policy Committee concludes its three-day meeting on June 5, as policymakers weigh mounting global uncertainties and their potential impact on inflation and economic growth.

"Inflation trends suggest that consumer price inflation could remain above 5 per cent for the next three quarters - SBI Research Report"

Market participants and economists anticipate that the central bank will maintain its cautious stance, choosing to closely monitor evolving developments in West Asia and their implications for commodity prices, supply chains and financial markets before taking any policy action.

The six-member MPC, chaired by RBI Governor Sanjay Malhotra, will meet from June 3 to June 5 to review the monetary policy framework. The committee had also left rates unchanged at its previous meeting in April, citing uncertainties arising from geopolitical tensions and their possible effects on inflation and growth prospects.

While a status quo on interest rates is seen as the most likely outcome, some economists believe the central bank may revise its macroeconomic projections. Rising crude oil prices, persistent supply chain disruptions and pressure on the rupee due to external factors could prompt the RBI to raise its inflation forecast while trimming its GDP growth estimates for the current financial year.

A recent report by the State Bank of India's economic research department expects the central bank to maintain the existing policy rate amid a volatile global backdrop.

According to the report, inflation trends suggest that consumer price inflation could remain above 5 per cent for the next three quarters, even though inflation during the current quarter is expected to remain in the range of 4 to 4.1 per cent.

The report projects India's real GDP growth at around 7.2 per cent in the fourth quarter of FY26 and estimates overall economic growth for FY26 at 7.5 per cent. However, it cautioned that prolonged geopolitical uncertainties could alter the outlook and necessitate revisions to growth forecasts as fresh data becomes available.

For FY27, the SBI research team currently estimates GDP growth at 6.6 per cent, though it acknowledged that the forecast remains subject to change depending on developments in the global economic and geopolitical environment.

The report argued that the RBI should continue to adopt a data-driven approach while keeping rates unchanged for now. It noted that if inflationary pressures intensify, the central bank has alternative policy tools at its disposal, including measures such as Operation Twist, which can help manage market conditions without altering benchmark interest rates.

Life Style and Management

EVERYTHING BEGINS IN THE MIND

It is from the mind that the seed of possibility and impossibility springs, it is the birthplace of every dream, and the threshing floor for every success. Every triumph, every invention, every step forward, starts as a single thought, a fleeting idea that dares to take root downward, to grow upward. The potential of your reality lies in the power of your imagination.

Every great achievement, every great success story in history began as a vision in someone's mind. The Wright brothers imagined flying objects, today many roam in the clouds, far into space and back. Thomas Edison imagined a bright and lighted earth, today, skylines and valleys, towers and bungalows shine brightly with different forms, colours, and shapes of lighting. Every mind carries such power, every mind is capable of imagining, and creating anything it feels worthy.

If you allow your mind, it can both create or destroy. It can build castles of progress or barriers of hinderance. Doubt, fear, and hesitation are born in the same place as courage, hope, and determination. The difference lies in what you choose to nurture. Feed the thoughts that lift you, focus on possibilities, not limitations. Train your mind to see challenges as opportunities, setbacks as lessons, and dreams as plans in motion.

You can start with a single positive thought today. Visualise the future you desire, see yourself as moving towards that future as you work tirelessly towards reaching it. Your mind does not know the difference between imagination and reality. When you have doubts, remind yourself that every masterpiece began as a rough sketch, every journey started with a single step, and every step, every sketch, every spark of inspiration began in the mind. So, guard your thoughts fiercely, surround yourself with ideas that inspire, people who uplift, and habits that reinforce your vision.

To a better you

Jokes All the Way......

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The Institute of Indian Foundrymen