During the Week-44 (23 Oct-29 Oct), Indian Steel Industry witnessed price rise over supported demand in the domestic market. In the period, prices of Semis & Long products increase about INR 500-1,000/MT (USD 8-15). Although, the Flat steel offers were unchanged due to moderate trade activities with suppliers end.
Raw Material: In the week, NMDC had put 56,000 MT iron ore for auction for non MoU customers which ended on 23 Oct’17. And fetched premium of around INR 300/MT for lumps ore, where as fines went unsold.
– Jindal Saw increased pellet prices by INR 250/MT after increase in global iron ore prices and imported lump becoming costlier. Essar Steel and JSPL concluded pellet export deals to China amid firm Chinese demand.
– In the week period it was also noticed that Durg, Chhattisgarh based Raipur Power & Steel has commissioned operations at its pellet plant.
– Pellets offers in domestic market almost remained firm. Jindal Steel & Power receive bids of pellet export deal for about 50,000 MT at around USD 118.75-119/MT, CFR China.
Imported scrap offers to India dropped this week for HMS (80:20) by USD 10-15/MT W-o-W, while offers for Shredded remained nearly in the same range since last week.
– Offers for Shredded scrap remained hovering for both UK and USA origins and assessed around USD 320-330/MT, CFR Nhava Sheva in bulk. Offers for HMS 1&2 (80:20) in containers for Dubai origin stood at USD 285-300/MT, CFR Nhava Sheva.
– No major trade deals took place this week from Indian scrap importers other than one in which Jindal Stainless has brought 10,000 MT Shredded scrap from USA at USD 320/MT levels.
Coal: An announcement by the Meteorological Department in Australia of heavy rainfall, towards the end of 2017, has incited the Coking Coal sellers there to slightly lift their spot prices in the hope that buyers in countries such as, India and Japan will ramp up their imports to stock it ahead of the rainfall, when supplies will be impacted. However, demand from Chinese steel makers continued to wane due to the imminent steel production cuts. Spot prices of the Premium HCC were last assessed at around USD 181/MT FoB Australia.
Semi finished steel market showed improvement on weekly basis, domestic sponge & billet prices moved up by INR 400-600/MT owing to good demand & improved export inquiries.
– Although, Indian billet export price assessment has come down by USD 10-15/MT this week after a bulk export deal (about 45,000 Billets) was concluded by Vizag Steel.
– Induction furnace grade billet offers for Nepal are reported at USD 402-405/MT ex-mill, Durgapur (West Bengal) & USD 400/MT ex-mill, Rourkela (Odisha). The offers decline marginally by USD 5/MT than the price assessement before Diwali Festival.
Further, in the second half of week domestic pig iron offers have increased over rising Indian billet and anticipated surge in global coking coal prices. The private pig iron manufacturers in Durgapur reported strong demand with increase prices by INR 700-800/MT to INR 23,000-23,200/MT. While, in Central & South region offers marginally increase by INR 200-300/MT.
– In context to exports, SteelMint’s pig iron export price assessment decline this week by USD 10-15/MT to USD 345-355/MT FOB India.
Finish-Long Steel Update: In a week’s duration, the long steel manufacturers increased their offers by INR 300-900/MT post long festive holidays. The prices in Eastern and Western Region improved marginally by INR 300-600/MT. While, the major price rise seen in Delhi & Chennai by INR 800-900/MT W-o-W. Inline Structure and Wire rod offers, the offers increase upto INR 1,000/MT over strong demand.
– Rathi Steels, one of the big manufacturer for rebars in North India has increased prices about INR 1,000/MT (USD 15) during current week.
Flat Steel Update: In these days, Indian manufactures have started booking decent quantities for exports to overseas market amid weak domestic demand, while prices remained stable this week for domestic buyers. Indian steel mills were heard to have booked of HRC export at USD 570-575/MT, CFR Vietnam.
Indian Raw material and Finished Steel reference Prices as on 28 Oct (Week 44)
| Products | Regions | Taxes | Prices in INR/MT | W-o-W |
| Pellet Fe 63%, 6-20 mm | Ex-Barbil,Loaded to wagon | GST at 5% Extra | 4,800 | 0 |
| Iron ore Fe 62%, 10-30 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET, GST at 5%Extra | 3,750 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 196 | 0 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 20,750 | + 550 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 17,500 | + 500 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 16,150 | + 450 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 24,500 | 0 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 26,700 | + 600 |
| Rebar (12mm) | Ex-Raipur (Medium Scale) | GST at 18% Extra | 29,400 | + 300 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 31,000 | + 900 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 31,000 | + 667 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 38,500 | + 500 |
| CRC (0.90mm) | Ex-Mumbai | GST at 18% Extra | 43,000 | + 500 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 37,500 | 0 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices
| Commodity | Size and Grade | Prices | 1W | 1M |
| Pellet | Fe 64% | 109 | 105.5 | 109 |
| Billet | 150*150 mm | 475 | 490 | 495 |
| Pig Iron | Steel Grade | 350 | 368 | 370 |
| HRC | 2.5-8mm, IS 2062 | 560 | 570 | 590 |
Source: SteelMint Research
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