Indian Steel Market Weekly Snapshot

Indian Steel prices remained volatile in the Week-13 (26-31 Mar) due to subdued trade activities amid financial year ending.

In this week, Semi finished trades little bit improved as prices of billet rose by around INR 500-1,000/MT (USD 8-15), while Sponge iron prices fell slightly by INR 200-400/MT (USD 3-6) on improved supply. Further, the long steel – Rebar prices inched up by INR 300-600/MT (USD 4-9) in across major Indian markets.

In context to Flat Steel, the purchase inquiries remained poor as per market participants and the prices reported fall of INR 500-1,000/MT (8-15) in traders market.

Iron ore and Pellets: In this week India’s largest merchant iron ore producer – Rungta Mines has reduced Iron ore price by INR 200/MT in lumps and INR 100/MT in fines. Earlier on 27th Mar’18 Essel Mining also reduced iron ore prices by INR 225/MT in both lumps and fines.

— Domestic pellet prices in India continue to remain under pressure witnessing sharp fall of INR 150-500/MT W-o-W across all major markets in India. West India (Rajasthan) based pellet maker – Jindal SAW has slashed pellet prices by INR 500/MT. Central India based pellet makers reduced pellets prices by INR 300/MT. Durgapur (eastern India) pellet have declined offers by INR 300/MT W-o-W.

— In Southern India (Ex – Bellary) based pellet manufacturers have also decreased its offers by 200/MT W-o-W. Trade sources reported that the market has turned dipper owing to year-end pressure (31st Mar’18) and declining sponge prices in the market. Indian pellet offers have also come because of decreasing pellet export prices.

Scrap: In the week duration, Indian domestic scrap market remained volatile and registered prices volatility by INR 200-700/MT.

— Imported scrap offers to India remained majorly stagnant this week and are reported at USD 395/MT for Shredded grade UK origin. Although, no significant buying interest have seen from importers end over the financial year ending. Buyers are likely to resume bookings in next couple of weeks. Offers for Shredded scrap also stable in this week for US origins and now assessed at USD 395-400/MT, CFR Nhava Sheva.

— The price assessment for HMS 1&2 (80:20) in containers for Dubai origin stood at USD 385/MT, CFR Nhava Sheva.

— Salem Steel Plant (SSP), a unit of Steel Authority of India Limited (SAIL), concludes a global tender for purchase of around 20,000 MT Scrap. And as per the sources, tender was concluded at USD 449/MT for Shredded.

Coking Coal: The falling trend in the Coking Coal prices continues, with over-supply fueling the decline. Coking Coal sellers in Australia, the prime export market, have been continuously lowering their spot prices due to the lackluster demand and over-supply ruling the market. Accumulation of unsold steel inventories of the Chinese steel makers on account of weak steel market has eroded demand for the coal as the steel plants ran at lower rates. At the same time, domestic Coking Coal production went higher in China, contributing towards the coal price fall. Current spot offers for the Premium HCC were learnt to have come down to around USD 196.50/MT FoB Australia.

Semi Finished: On Weekly analysis, Billet prices have increased in PAN India by INR 400-1,200/MT (USD 6-19) & the sponge iron prices slightly declined by INR 200-400/MT amid average inquiries and healthy supply. In these period major rise of INR 1,200/MT in billet have seen in Jalna, Western India.

— Indian Sponge iron export price assessment for lumps of grade FeM 78-80, recorded at USD 360-365/MT CPT Benapole (dry land port of Bangladesh & India) and USD 380/MT CFR Chittagong, Bangladesh.

— Vizag Steel has invited a tender for export of 8,256 MT billet and 5,504 MT Wire rod coils to Nepal. The due date for bid submission is 3rd Apr’18.

— The latest export offers to Nepal for Induction route billets by medium mills in Durgapur reported at USD 505/MT, against last week at USD 505-510/MT (ex-mill) Durgapur & size – 100*100mm.

— SteelMint’s Pig iron export price assessment stood at USD 385-395/MT FoB India, USD 385-390/MT FoB Brazil and USD 385-395/MT FoB Black sea.

— Pig iron offers in Central & Eastern India declined further by INR 300-500/MT (USD 4-8) W-o-W, due to slump in steel prices and improved supply for the material. The latest offers for Steel grade are evaluated at INR 27,800-28,200/MT ex-Durgapur, INR 29,100-29,300/MT ex-Raipur, INR 28,000-28,500/MT ex-Odisha & INR 28,000-28,300/MT ex-Vizag/Hyderabad.

Finish-Long Steel: As per week assessment, Finish Long steel demand gradually picked and Rebar price range have increased by INR 300-600/MT which is being captured with appropriate bookings by trade participants.

— Rathi Steels based in North Region, considered one of the price trend setter has increased the rebar price by INR 1,100/MT on weekly basis and current range of 12 mm rebar around INR 40,600/MT, Ex-Delhi.

Whereas the large manufacturers offers for 12mm rebars are evaluated at INR 44,500-45,000/MT ex-Mumbai and as per sources report Inventory level in stock yards is still concerned as procurement is not fulfilled appropriately.

— Structure & Wire Rod market remained on positive note and registered price hike of INR 100-500/MT.

— In this week, Jalna based rebar manufacturers have increased gauge parity by INR 300/MT in all sizes w.e.f 26.03.18.

Flat Steel Market : Indian flat steel prices have witnessed further decline in traders market by INR 500-1,000/MT W-o-W as the sluggish demand coupled with end of financial year resulted in bearish sentiments in domestic flat steel market.

Market sources shared that, “Buying activity remain very limited in domestic market owing to end of financial year and buyers have lowered purchases”.

Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 43,500-44,000/MT (ex-Mumbai),INR 44,000-44,500/MT(ex-Delhi), INR 44,500-45,000/MT (ex-Chennai). The prices mentioned above are basic prices excluding GST @ 18%.

Trade reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 48,500-49,000/MT (ex-Mumbai) INR 49,500-50,000/MT (ex-Delhi) and INR 49,000/MT (ex-Chennai). The prices mentioned above are basic prices excluding GST@18%.

Issues related to material availability seems to have restored as SAIL’s Bokaro plant which faced fire breakout in its hot strip mill and was under maintenance is heard to have resumed operations.

On the other hand major Indian manufacturers are planning to raise flat steel prices about INR 500-1,000/MT in the month of Apr’18. However market participants remain perplexed regarding hike in flat steel prices as it seems difficult to absorbed in the domestic market.

Indian Raw material and Finished Steel reference Prices as on 31 Mar 2018 (Week 13)

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

Indian Export Reference Prices as on 31st Mar’18

Prices in USD/MT
Source: SteelMint Research