Indian Steel Market Weekly Snapshot

During the week-20 (14-19 May) of 2018, domestic Iron and steel offers remained volatile due to subdued trade activities.

In these days Indian billet offers incline by INR 500-1,000/MT (USD 7-15), while finish long steel – rebar market registered price volatility by INR 400-1,200/MT (USD 5-18). Meanwhile, the Flat products prices decreased by INR 500/MT(USD 8) in the week.

Iron ore and Pellets:  National Mineral Development Corporation (NMDC), may be possible have taken the decision to revise monthly iron ore prices in the mid of every month instead of doing in the beginning. Truckers Association in Joda sector of India’s largest iron ore producing state- Odisha have halted iron ore movement demanding hike in transportation rate.

Domestic pellet prices in central and eastern India continued its downward movement this week. Pellet prices have witnessed a decrease up to INR 50-150/MT W-o-W on declining P-DRI prices. However, western India Pellet maker Jindal SAW prices have increased sharply by INR 250/MT. Pellet prices in Durgapur have decreased up to INR 150/MT W-o-W. Ex-Raipur Prices have decreased by INR 100/MT W-o-W.

Shyam Metaliks & Energy is going to set up a new pellet plant in Jharsuguda with 0.6 MnT by the end of 2018 reported by SteelMint sources.

Scrap: Indian scrap importers turned silent this week on depreciating currency and availability of cheaper sponge iron and domestic scrap. Imported scrap prices fell marginally on the slowdown in scrap purchases on W-o-W but buyers kept seeking for further price corrections in the uncertain global market.

Price assessment of UK/Europe origin containerized Shredded stood at USD 383-388/MT, CFR while offers from USA gauged in the range of USD 388-392/MT, CFR Nhava Sheva.

South African HMS 1&2 assessed at USD 370-375/MT and Dubai origin HMS 1 at USD 375-378/MT, CFR Nhava Sheva. Minor trades for West African and European HMS concluded in the range of USD 350-365/MT, CFR depending on the quality of scrap.

Coking Coal:  Seaborne coking coal prices marginally moderated this week after the steep rise in the last week. Nevertheless improved end market sentiments—on the strength of re-surging steel production in China coupled with India’s avaricious steel consumption—could bode some more forward momentum for the spot prices of the commodity in the short term. Moreover, uncertainties about near-term supply disruptions in Australia’s Queensland coal belt—one of the world’s major coal producing region—might push the fuel prices further up. In addition, China’s stricter environmental regulations will raise demand for the premium hard coking coal with low sulphur content. Import offers for the Premium Low-Vol HCC grade hover at around USD 184.50/MT FoB Australia.

Semi Finished: In a week duration, domestic billet offers rise in the range of INR 500-1,000/MT (USD 7-15) in major markets. While in Chennai, Southern India due to weak demand, offers fall upto INR 500/MT. Further, sponge iron prices slightly fluctuated by INR 100-300/MT amid average inquiries.

— Indian Sponge iron export offers to Bangladesh for lumps grade FeM 78-80, hovering at USD 360-365/MT CPT Benapole (dry land port of Bangladesh & India) and USD 380-385/MT CFR Chittagong, Bangladesh. These offers are down by about USD 5/MT as compared to the previous week owing to weak buying activities due to Ramadan festival.

— India’s Vizag Steel had concluded a tender for export of 10,000 MT billets (Grade IS 2830 GR A of size 90*90 mm having length of 12 meters) at around USD 531-532/MT, FoB India.

— In the initial days of week it was also noted, Neelachal Ispat (NINL) has recorded its highest ever hot metal production on a single day & produced 3,001 MT of hot metal on 13th May 2018.

— SAIL’s RSP (Rourkela Steel Plant) tender held on 17th May’18 to sell about 4,700 MT steel grade Pig iron. The base price of the tender was at INR 26,600/MT and 4,200 MT quantity have been sold out.

— Recently, MMTC has floated an export tender of 40,000 MT non-alloy Pig Iron on behalf of NINL. The due date for submission of bids is 25 May’18.

Finish Long Steel market reported mix trend in major market on weekly basis. Optimistic sentiments along with lengthening billet prices extended finish long commodities (Rebar, Structure, Wire Rod & Pipes) and the price level stretched up to around INR 1,000-1,200/MT but minor correction has been registered in rebar prices by around INR 200-400/MT in specified regions i:e; South (Chennai), East (Durgapur) & West(Mumbai & Jalna).

As per market sources, price level is gaining it’s position due to strengthening semi finish (billet) offers but trade volume happening is near to average only & few traders anticipating minor amendment for short term as price level is high and freight charges doesn’t allow to deliver material on appropriate basis.

Currently rebar prices are assessed at INR 40,500-41,000/MT Ex- Jalna, INR 39,800-40,200/MT Ex- Raipur, INR 41,000-41,500/MT Ex-Chennai. All prices are basic & excluding GST.

Further, North India based Rathi Steels have increased the price level by around INR 1,300/MT on weekly basis & current offers are at INR 43,400/MT, size – 12 MM, ex-work & excluding GST.

Flat Steel Market: This week India’s domestic HRC prices witnessed marginal decline in traders market amid subdued demand and slow movement of material in traders market. This led to decline in HRC prices by INR 500/MT in major markets. Although CRC prices continued to remain strong in fewer regions.

Traders reported limited activities and mentioned that they are unable to absorb the price hike in the domestic market. However market participants in eastern India (Kolkata) reported stable prices amid less material availability.

Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 46,000-46,500/MT (ex-Mumbai), INR 46,000/MT(ex-Delhi), INR 46,000-46,500/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 50,500-51,500/MT (ex-Mumbai),INR 53,000/MT (ex-Delhi) and INR 50,500-51,500/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.

Indian Raw material and Finished Steel reference Prices as on 19 May 2018 (Week 20)

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

Indian Export Reference Prices as on 19th May’18

Prices in USD/MT
Source: SteelMint Research