Week 49 (27th Nov-3rd Dec) was promising week for the Indian steel makers as the prices went high in line with improved demand and rise in raw material prices amid short supply.
In these days Indian semis & long market registered price rise of INR 1,000-2,000/MT (USD 16-31) by medium & small scale manufacturers.
Meanwhile, the large scale producers have raised prices by INR 500-1,000/MT (USD 8-16) for long steel & Flat steel for Dec 2017 deliveries. Rising input cost, strong export orders & costlier imports are the major factors behind price surge by these manufacturers.
Raw Material: NMDC raised iron ore prices by 13% M-o-M for Dec. Odisha based major merchant miners have raised lump prices by INR 400/MT and fines prices by INR 200/MT. OMC has kept base prices unchanged for upcoming e-auction.
Following iron ore price hike, Durgapur and Raipur based pellet manufacturers raised offers. Raipur based major pellet makers have raised offers by INR 200/MT to INR 6,000/MT (basic) & Durgapur based pellet offers are now assessed at INR 6,000-6,100/MT (Basic).
– On weekly basis imported scrap offers to India moved up slightly. Buying is expected to start shortly over depleting scrap stocks and rising sales for finish products in India.
Offers for Shredded scrap in containers from UK inched up to USD 345/MT, CFR Nhava Sheva. Offers for HMS 1&2 (80:20) from Dubai assessed at USD 315/MT, CFR Nhava Sheva but its availability is quite limited amid tightened supply.
HMS offers from West Africa were fairly competitive at USD 300-305/MT, CFR Nhava Sheva. Recently domestic scrap prices also have moved up owing to its shortage in domestic market following the rise in offers for imported scrap.
Coking Coal: Upward movement in Coking Coal prices continues, as the demand is escalating, with the major global importers in importing spree in view of the period of no supply during the holiday period in Australia, to commence with effect from 20 Dec’17, and will span upto 8 Jan’18. The buyers are aggressively importing the coal for stocking inventories for the holiday period. According to the latest assessment, spot prices of the Premium HCC have moved up to around USD 206.50/MT FoB Australia. Further upward price movement is a certainty.
Semis Market highlights: Indian semis (Sponge & Billet) prices increased by INR 1,000-2,000/MT (USD 16-31) amid improved demand. Inline, India Billet prices at 8- months high & Sponge iron prices in Raipur rise further to hit 3 years high owing to recent hike in iron ore prices by some of the major miners.
– Indian Sponge iron exports offers to Bangladesh increase sharply by USD 15-20/MT, W-o-W. The latest offers for FeM 80-82 lumps grade are assessed at USD 330/MT, CPT Benapole (land port of India & Bangladesh).
– Indian billet exporters have hold their offers owing to better realizations in domestic market. Indian induction grade billet exporters would eye a price level of USD 470-480/MT FoB, in order to match current domestic prices.
Indian pig iron prices also find support on rising raw material and steel prices in domestic and global market. In the week major price rise of INR 1,000/MT reported in East India (West Bengal & Jharkhand) followed by Central region- Raipur INR 200-300/MT & in North part – Ludhiana around INR 500/MT.
– Neelchal Ispat (NINL), India’s largest steel grade pig iron manufacturer had open its domestic offers on 1st Dec’17 for Steel (N1) grade at INR 23,800/MT (USD 366) & Foundry (N2) grade at INR 24,200/MT (USD 374) ex-plant, Odisha. The company also offers discount of INR 200/MT on bulk purchase. MMTC, export tender of 5,000 MT non-alloy Pig Iron on behalf of Neelachal Ispat Nigam Limited (NINL) is expiring on 05 Dec’17.
– According to the officials from Neelachal Ispat the company’s blast furnace is on maintenance which will take around 2 month’s to resume operations.
– Vizag Steel’s export tender of 25,000 MT Pig iron which got expired on 21 Nov’17 heard to have concludes at USD 337-338/MT FoB India. Prior to this, Western India based an private pig iron manufacturer has concludes export deal at USD 340/MT, FoB.
– SteelMint’s Indian Pig iron export price assessment stood at USD 335-340, FoB. Meanwhile, the global offers hovering at USD 340/MT FoB Brazil & USD 335-340/MT, FoB Black Sea.
Finish Long Steel: In a week’s duration the prices were sharply went upwards by INR 1,000-2,000/MT almost all locations and demand has been improved except South region where heavy rainfall is disturbing the supply chain though Billet & TMT existing price range crossed INR 1,000-1,200/MT level.
Further, particular location assessment of re-bar offers for 12 mm in Maharashtra (Jalna) stood at INR 33,000MT, Chattisgarh (Raipur) at INR 31,500-31,900/MT & in Gujarat (Ahmedabad) at INR 34,000-34500/MT, basic prices & excluding GST.
– Indian large producers have raised Re-bar, Structure & Wire prices by INR 500-1,000/MT for December’17 deliveries, according to SteelMint Analysis. Prices for Re-bar (12-28 mm) stands at around INR 35,000/MT & Wire rod at INR 39,000/MT, ex-Mumbai & excluding GST
Flat Steel Market: Indian steel biggies have increased Flat steel prices by INR 500-1000/MT for December over high production cost amid rise in iron ore and coking coal offers.
Odisha based major merchant miners have increased prices up to INR 400/MT. India’s largest iron ore producer – NMDC has hiked iron ore prices up to 13% for Dec’17.Also rising coking coal prices due to congestion in port terminals of Australia results to higher prices of imported coking coal to India
After revision, manufacturer’s reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 40,000/MT (ex-Chennai) and INR 40,250/MT (ex-Mumbai).The prices mentioned above are basic prices excluding GST at 18%.
As per SteelMint assessment current reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 44,500-45,000/MT (ex-Chennai) and INR 43,500/MT (ex-Mumbai).The prices mentioned above are basic prices excluding GST at 18%.
Indian Raw material and Finished Steel reference Prices as on 2 Dec (Week 49)
| 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 | 5,200 | +200 |
| Iron ore Fe 62%, 10-30 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET, GST at 5%Extra | 4,150 | +400 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 220 | +15 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 22,400 | +1,000 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 20,200 | +900 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 18,900 | +800 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 25,200 | +200 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 28,700 | +1,300 |
| Rebar (12mm) | Ex-Raipur (Medium Scale) | GST at 18% Extra | 31,700 | +1,400 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 32,900 | +1,200 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 34,400 | +1,900 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 39,500 | +1,000 |
| CRC (0.90mm) | Ex-Mumbai | GST at 18% Extra | 43,500 | +500 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 38,000 | +1,000 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices
| Commodity | Size and Grade | Prices | 1W | 1M |
| Pellet | Fe 64% | 107 | 110 | 110 |
| Billet | 150*150 mm | 460 | 455 | 473 |
| Pig Iron | Steel Grade | 338 | 330 | 335 |
| HRC | 2.5-8mm, IS 2062 | 545 | 545 | 560 |
Source: SteelMint Research
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