Indian Steel Market Highlights, Week 53

In the year end – week 53 (25th-31st Dec’17), domestic Iron and steel offers remained volatile due to subdued trade activities as in 1st half of week the prices gained momentum while in the later days it decline on fading trade activities due to holiday’s mood in the market.

In these days prices of semis & long steel reported mix trends of INR 500-1,000/MT (USD 8-15). Meanwhile, at the same time Flat steel offers rise sharply by INR 1,000-1,500/MT (USD 15-23).

Raw Material: Major merchant miners in Odisha have further raised iron ore prices, Lump prices have increased by INR 400/MT and fines by INR 200/MT. Availability of rake for iron ore has been critical and it is hampering movement in eastern parts of the country which has resulted in scarce availability.

Domestic pellet offers in India have increased up to INR 750/MT W-o-W. A significant hike in offers was seen in eastern & central parts of the country. Pellet manufacturers in Durgapur have raised offers by INR 750/MT and that in Central India (Ex-Raipur) by INR 550/MT against offers made in the beginning of last week.

Imported scrap offers to India remained almost firm with a marginal increase in HMS offers this week. With the rise in offers few trades have been reported for India by market participants.

Current offers for US origin Shredded scrap in containers are stood around USD 375-380/MT, CFR Nhava Sheva. While, HMS scrap in containers traded at USD 345/MT from Dubai, at USD 350/MT from Australia and P&S grade from Europe procured at USD 365/MT, CFR. Strong local markets supported scrap importers to enquire for bulk cargoes which are being quoted around USD 400/MT for Shreded. However, no deals for bulk cargo from Indian importers reported yet. After remaining less active since last few weeks importers witnessed buying activities this week before New Year holidays.

Coking Coal : Coking coal prices in Australia have reached levels high enough to make buyers think twice before booking imports. With the winter holidays going-on in Australia, there is no fresh supply of the coal from the miners; and at the same time, heavy rains are causing disruptions. While, the demand has continued to remain strong and under the influence of these factors, spot prices of the Premium HCC have reached around USD 262.25/MT FoB Australia with the hike of USD 15-17/MT, W-o-W.

Semi finished: Indian Sponge & Billet prices were increased about INR 1,500-2,500/MT prior the start of week 53 (25-31st Dec). However, it started to fall in the mid of week owing to weak demand in the major trade markets.

The private pig iron producers have also increased offers during current week as compared to SteelMint’s price assessment during last week. The prices increased in the range of INR 500-1,300/MT (USD 8-20) amid average trade activities.

— Indian sponge iron export offers to Bangladesh have increased by around USD 25/MT W-o-W & assessed at USD 375-380/MT CPT Benapole (land port of Bangladesh and India).

— Indian billet export offers increase about USD 5-10/MT and are assessed at USD 510-520/MT FoB India against last assessment at USD 510/MT FoB.

— A major Indian pig iron exporter has recently closed an export tender for 6,000 MT non-alloy pig iron at around USD 355-360/MT, FoB India. This is higher against our last price assessment made at USD 345-350/MT, FoB India.

Finish-Long Steel: As per weekly analysis, finish long (Rebar & Structure) market have been registered price movement of INR 500-800/MT on fluctuating demand and have been affected by semi finish offers.

Meanwhile, the manufacturers in South India interested to gain value for exporting as few deals of Rebar has been reported around USD 585-590/MT (FOB Indian) and some deals are on table. Elongated prices also lead by supportive demand locally up to the certain level.

— The medium steel plants in Hyderabad have increase rebar gauge parity by INR 200/MT for 8 & 32 mm. Also, it increased in same amount for 10-25 mm. While considering primary view Vizag Steel (RINL) increased prices in a week beginning – rebar by INR 1,500/MT, structure by INR 1,000/MT & Wire Rod by INR 1,250/MT, w.e.f. 26th Dec’17.

— Central region – Raipur based wire rod manufacturers have pushed the discount level from zero to INR 1,000/MT though in a mid week discounts it were INR 400-500/MT and East –  Durgapur based manufacturers declined INR 500/MT yesterday.

Flat Steel Market : India’s Domestic HRC/CRC prices in traders market have witnessed sharp hike of around INR 1000-1500/MT W-o-W over anticipation of price hike in next month coupled with improved buying sentiments in domestic market.

However on the other side, there is no major revision in flat steel prices from manufacturers side this week and they are expected to hike prices upto INR 1,500-2,000/MT for Jan’18 amid increased raw material cost and prevailing optimistic sentiments.The price announcement for the same is expected to be done in the upcoming days.

Currently prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 40,800-42,000/MT (ex-Mumbai), INR 42,000-42,500/MT (ex-Delhi),INR 41,000-41,500/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18%.

Current reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 44,500-45,000/MT (ex-Mumbai) INR 45,000-45,500/MT (ex-Delhi) and INR 46,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18%.

Indian Raw material and Finished Steel reference Prices as on 30 Dec (Week 53)

Prices are Ex-works, Exclusive of GST at 18%

Indian Export Reference Prices

Source: SteelMint Research