Indian Steel Market Weekly Snapshot

In the Week-17 (23-28 Apr), Indian Steel market remained on positive direction in line with some shortage of semis products amid strong inquiries which influenced producers to keep prices upwards.

As per SteelMint assessment, during the week prices of Semis & Finished long steel products rose by INR 500-2,000/MT (USD 7-30). Inline Flat steel offers were also up by INR 500/MT W-o-W

Iron ore and Pellets: Indian Steel mills continue to book South African Lump import vessels. Gujarat based steel mills have booked around 2-3 vessels for May loading at monthly average index basis. Indian iron ore imports likely to cross 1 MnT in April-SteelMint Data.

Domestic pellet prices in eastern and western India have witnessed an increase up to INR 100-250/MT W-o-W. However, in southern India and Central India pellet prices have shown marginal correction of INR 50/MT. Western India pellet maker Jindal SAW has increased pellets offers by INR 250/MT (delivered Kandla) this week. Durgapur (eastern India) pellet price assessment has increased INR 150/MT W-o-W. Bellary pellet offers have moved down by INR 50/MT against our last assessment.

Scrap: Indian imported scrap market witnessed fewer trades this week although offers remained almost stable. Buyers remained cautiously away from buying in bulk volumes amid currency depreciation and kept waiting to get clear price direction in the global market. Few trades for Shredded concluded at USD 387-390/MT, CFR in containers from UK while offers for the same from USA gauged stable W-o-W in the range of USD 390-395/MT, CFR Nhava Sheva. Price assessment for South African HMS 1&2 stood stable at USD 375-378/MT and Dubai origin HMS 1 at USD 377-380/MT, CFR Nhava Sheva. Minor trades for West African and European HMS concluded in the range of USD 355-365/MT, CFR depending on the quality of scrap.

Coking Coal: The price fall has continued to rule the Coking Coal market. Availability of ample unsold Coking Coal cargoes has forced the Australian sellers to continuously lower their spot prices for inciting buyers. On the other hand, Chinese steel makers – the prime buyers of Coking Coal, have stopped active purchases and are waiting for the prices to come down to significant levels. Spot price of the Premium HCC has slipped to around USD 179/MT FoB Australia. Market conditions indicate that the prices will decline further due to inactivity exerting added selling pressure.

Semi Finished: Indian Semi finished prices increase further over strong trade activities during the days. As per SteelMint assessment, the domestic Billet prices have increased by INR 600-1,800/MT (USD 8-27) & Sponge iron by INR 500-1500/MT (USD 7-23). While Indian Induction grade Billet export offers for Nepal by steel mills in Durgapur have increased to around USD 545-548/MT against last week at USD 535-540/MT. Although few deals also concluded from Odisha at USD 535/MT (Loaded to Wagon)

— Indian sponge iron export offers to Bangladesh for lumps of grade FeM 78-80, assessed at USD 365-370/MT CPT Benapole (dry land port of Bangladesh & India) and USD 385-390/MT CFR Chittagong, Bangladesh. Although, no fresh deals have been reported through the export sources.

— In Jindal’s punjipatra-Raigarh area (Central India), power supply have been improved to 16-18 hrs from earlier about 8-10 hrs per day, as per Ingot/Billet manufacturers

— India’s largest merchant steel grade Pig iron manufacturer, Neelachal Ispat (NINL) resumes offers for steel grade pig iron in domestic market after quite some time & the Commercial sale would commence from May 15. The latest offers for Steel (N1) grade material are assessed at INR 31,000/MT (USD 462) & for Foundry (N2) grade at INR 32,000/MT (USD 477), ex-Cuttack, Odisha.

— Jindal Steel offering Granulated Pig iron (Panther shots) at INR 29,500/MT ex-plant, Angul, Odisha. The company also offering Pig iron from its Raigarh unit at INR 31,000-31,200/MT ex-plant.

— Recently, Steel Authority of India Ltd(SAIL) has concluded pig iron auction of 4,800 MT steel grade pig iron from its Rourkela Steel plant (RSP) at a price of INR 30,500/MT on ex-plant basis-Sources

Finish Long steel prices have gathered positive sign on weekly basis & the price level has been extended from INR 500-1,500/MT in all major regions except Chennai where the Rebar price has been hovering in same level and doesn’t notice any major fluctuations as demand is slightly slow but this factor alone didn’t manage enough to go with bidding movement due to closure of few major plants on temporary basis in past week with concern of pollution as well as maintenance and disturbed supply movement kept current offering basic Rebar – 12 mm at INR 40,600-41,200/MT, ex-Chennai, as per market sources.

Rathi Steels based North region increase the price range by around INR 1,300/MT on week basis and currently offering at INR 43,000/MT 12 mm, Ex-work & excluding GST and further trade participants anticipating the price range shall exist as demand urged price range to keep head with certain measures amid high billet range as per current layout.

The suppliers in Raipur have slightly reduced trade discount on Wire rod (5.5m) to INR 800-1,000/MT against a weekly average of INR 1,200-1,400/MT. The purchase inquiries seem better from last 2-3 days, as per trade participants.

Flat Steel Market: Indian steel makers are planning to hike flat steel prices by INR 500-1000/MT again in the month of May, as per sources. And in April prices raised by INR 750-1000/MT.

Improved domestic demand amid less inventories in the month of April may result price rise next month. Meanwhile less imports from South Korea and Japan amid depreciating Indian currency (USD to INR, 66.64) has also plays a major impact on supply of material in domestic market.

However this week market sentiments remain stable. Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 45,500/MT (ex-Mumbai), INR 45,500/MT(ex-Delhi),INR 45,500-46,000/MT (ex-Chennai).

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

Indian Raw material and Finished Steel reference Prices as on 28 Apr 2018 (Week 17)

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

Indian Export Reference Prices as on 28th Apr’18

Prices in USD/MT
Source: SteelMint Research