Indian Steel Market Weekly Snapshot

Indian Iron & Steel market remained on down trend during the Week-12 (19-24 Mar’18) as the prices dipped owing to lack of domestic & export inquiries.

During the days, prices of Semis & Finished long steel products fall approximately by INR 500-1,200/MT (USD 8-18) in across major Indian markets. Further, the flat steel offers were also corrected by INR 500/MT W-o-W over less trade activities.

Iron ore and Pellets: Odisha iron ore miner kept prices unchanged for this week also. If trade sources are to be believed, Odisha merchant miners are offering discounts of INR 200-300/MT. But miners are likely to announce fresh offers next month. However, market sources are eyeing for a considerable reduction in offers in coming weeks.

Domestic pellet prices in eastern India continue to remain under pressure witnessing fall of up to INR 100-300/MT W-o-W. However, in other markets of pellet prices have remained unchanged this week. In Durgapur (eastern India) pellet offers have come down by INR 200-300/MT W-o-W. NMDC is offering pellets in the domestic market.

Scrap: This week Indian imported scrap market witnessed very less activities amid less supportive local steel prices. Also approaching financial year end has resisted importers from booking scrap at high prices. Imported scrap offers rise slightly by USD 5/MT on W-o-W basis.

— Shredded scrap offers from UK and USA suppliers assessed at around USD 400-405/MT, CFR Nhava Sheva. While HMS 1&2 (80:20) from Dubai assessed at USD 385/MT, CFR Nhava Sheva. HMS 1&2 (80:20) from few UK based yards was being offered at around USD 370-375/MT, CFR. Most of them are ‘waiting and watching’ international markets to correct in order to resume bookings for May arrivals.

Coking Coal: Coking Coal prices have continued to tumble, under the impact of over-supply coupled with feeble demand. While, there is ample supply of the coal in Australia, demand from the main export market – China has slackened as the Chinese steel makers were in no rush to import, having sufficient inventory of Coking coal and the steel market there is also in a slowdown state. Spot prices of the Premium HCC have receded to around USD 207.50/MT FoB Australia. If the market buzz is something to go by, then active buying of the coal would resume as many steel makers were learnt to be comfortable if the coal prices drift a little lower.

Semi Finished market fall further in a week duration, domestic sponge offers down by INR 300-1,000/MT & Billet offers fall in the range of INR 400-1,200/MT. In these period major fall of INR 1,100/MT in billet seen in Mumbai, Western India due to limited inquiries resulted sharp fall in prices.

In line, Pig iron prices declined by INR 800-1,200/MT. According to trade participants demand was subdued amid improved supply by private Pig iron producers.

— Indian Sponge iron export offers fell about USD 20/MT W-o-W, price assessment for 78-80 FeM sponge lumps are at USD 365/MT CPT Benapole (dry land port of Bangladesh & India) and USD 380-385/MT CFR Chittagong, Bangladesh.

— The latest Induction grade billet export offers to Nepal are quoted by Durgapur, East India based mills at USD 505-510/MT (ex-mill), which fell about USD 5/MT against last week at USD 510-515/MT.

— In the mid of current week, India’s SAIL (Steel Authority of India) concluded 13,500 billet (125*125mm billet, 5SP) export tender at USD 541/MT, FoB India.

— Rashtriya Ispat Nigam Limited (RINL), also known as Vizag Steel is a Navratna has concluded 15,000 MT billet export tender for 200*200 mm at around UD 505/MT, FoB India.

While recently, the plant has issued a tender for export of 20,000 MT Blooms of 150*150mm & 200*200mm each. The due date for bid submission is 28 Mar’18.

— Neelachal Ispat (NINL) is expected to resume operations in April, the company’s blast furnace is on capital maintenance since December 2017. The plant offers Steel grade (N1) Pig iron at INR 29,500/MT (USD 454) & Foundry grade (N2) at INR 30,000/MT (USD 462), ex-plant, Cuttack (Odisha). The company’s price circular expired on 23rd Mar 2018.

— SteelMint’s Pig iron export price assessment stood at USD 385-395/MT FoB India, USD 375-385/MT FoB Brazil and USD 360-385-395/MT FoB Black sea.

Finish-Long Steel: In this week Medium & small rolling mills in domestic market reported fall in Rebar, Wire rod & Structure sales this has led to narrow price range.

Currently, the offer prices for 12 mm rebar are assessed – at INR 36,500-36,900/MT (-600) Ex-Raipur, INR 37,200-37,600/MT (-800) Ex-Durgapur, INR 37,500-38,000/MT (-600) Ex-Mumbai. The changes mentioned above on W-o-W basis.

— The export offers to Nepal by Indian medium mills are reported for Wire rod (5.5 mm, commercial grade) at USD 588-590/MT ex-mill, Durgapur – East India. The offers marginally decline against SteelMint’s last week assessment at USD 595-595/MT ex-mill. On CIF Nepal basis these offers will cost high approximately by USD 15-20/MT.

— The large producers offers for Wire rod (5.50-6.00mm, grade – SAE1008) have reported firm at USD 700/MT ex-mill & USD 715-720/MT CIF Nepal (Indo-Nepal border).

— In the week duration, the steel mills in Chennai, South India reported export inquiries for Rebars at USD 595/MT & Billet at USD 530-535/MT; FoB, from South East Asia – Myanmar.

Flat Steel Market : Domestic HRC prices registered marginal decline this week owing to slow demand and weak purchases in traders market. Few market participants reported that owing to selling pressure over fiscal end traders were trying to clear their inventories,This has resulted in decline in sale prices.

Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 44,000-44,500/MT (ex-Mumbai), INR 45,500/MT(ex-Delhi),INR 44,500-45,000/MT (ex-Chennai). The prices mentioned above are basic prices excluding GST @ 18%.

However in CRC, market sentiments have remained optimistic with slight increase in prices. Trade reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 49,500-50,000/MT (ex-Mumbai) INR 50,000-51,000/MT (ex-Delhi) and INR 49,000/MT (ex-Chennai). The prices mentioned above are basic prices excluding GST@18%.

On the other side,despite slow demand major Indian manufacturers are planning to raise the flat steel prices about INR 500-1,000/MT in the month of Apr’18.

Indian Raw material and Finished Steel reference Prices as on 24 Mar 2018 (Week 12)

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

Indian Export Reference Prices as on 24th Mar’18

Prices in USD/MT
Source: SteelMint Research