Daily Update: Indian Semis Offers Rise

In the week opening, Indian Semis offer increases further amid average demand from the domestic rolling-mills. As per assessment, the prices of Sponge iron & Billet have increased by INR 100-500/MT day-on-day.

The major hike of INR 500/MT (USD 8) in Billets assessed in Hyderabad – South India & the same hike in Sponge iron recorded in Central region – Raigarh, while in rest of markets it registered surge of INR 100-300/MT.

SteelMint’s latest price assessment for induction furnaces billet in Indian market stood at INR 36,300-40,600/MT (USD 541-605) ex-plant. Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 20,400-22,700/MT (USD 304-338); prices are ex-plant & excluding GST.

Rupee & BSE Sensex

— On 4th June 2018 (Monday) INR to USD exchange rate stood at INR 67.06

— BSE Sensex closed at 35,011(-215) on Monday, 4th June 2018

Raw material

— As per market reports, SAIL’s – RSP (Rourkela Steel Plant) in Odisha has set a new benchmark in May’18 in terms of production improving upon its previous performances. The hot metal output from the plant’s blast furnaces is recorded to be all time high at 336,882 tonnes.

— Odisha’s merchant iron ore producer – KJS Ahluwalia and Kaypee Enterprises increased iron ore prices by INR 200/MT in lumps and INR 150/MT in fines w.e.f today (4th June 2018).

— Indian Iron ore exports hit 6-month low in May’18. The Iron ore exports have declined sharply by 33% in May’18 to 0.79 MnT against 1.18 MnT in Apr’18. India’s monthly iron ore export volumes declined sharply and have hit 6-months low in May’18. Prior to this in Nov’17, Indian iron ore export was recorded at 0.76 MnT.

— NMDC Chhattisgarh Iron Ore Rake Movement Increased Marginally in May’18. India’s largest iron ore miner, NMDC supplied 319 rakes of iron ore in May’18, up slightly by 1% as against supply in Apr’18, recorded at 317 rakes.

— Indian Silico manganese prices witnessed a slight correction as MOIL reduced their Manganese ore prices. Latest offers for Silico Manganese assessed at INR 63,000/MT (Ex-Raipur) and INR 63,000-64,000/MT (Ex-Durgapur).

Semi finished

— Steel grade pig iron prices reported firm in Central India – Raipur at around INR 30,600-30,800/MT, excluding GST.

— Raipur, Central India based Integrated plants has raised Sponge offers by INR 200-300/MT and offered P-DRI at INR 20,000-20,200/MT & Sponge DR CLO grade at INR 22,900-23,100/MT ex-plant. Sponge C-DRI lumps being offered from neighbouring markets at INR 22,000-22,100/MT FoR Raipur.

— Transportation issue reported for Sponge supply from South region-Bellary to West India- Maharashtra due to limited availability of logistic vehicles. Thus, freight charges rose to INR 1,400-1,600/MT from earlier about INR 1,100-1,300/MT from Bellary to Jalna, as per suppliers.

— Medium size sponge manufacturers in Odisha, offered FeM 80 C-DRI (70:30 mix material) at INR 20,800-21,000/MT ex-plant & excluding GST.

— Durgapur based manufacturers have raised sponge prices by INR 200MT to INR 21,200/MT for P-DRI & INR 22,700/MT for C-DRI.

— BMM Ispat a price trend setter in South Indian sponge market has kept offers unaltered and offering FeM 80 P-DRI lumps at around INR 19,800/MT ex-Bellary, Karnataka.

Finish Long

— North Region based Rathi Steels have unchanged their prices and current offering at INR 45,800/MT, size – 12 mm & excluding 18% GST.

— Jalna based rebar manufacturer – SRJ Peety Steels Pvt Ltd branding Shree Om TMT unchanged their prices and current offering basic rebar at INR 39,400/MT, ex-work & excluding GST.

— The suppliers in Raipur have slightly increased their trade discount on Wire rod by around INR 1,000-1,200/MT, size – 5.5 MM.

— Gujarat based Shreeyam Power & Steel Industries Ltd branding as National TMT has increased by around INR 200/MT and current offering basic rebar at INR 49,400/MT FoR & including GST at 18%, Size – 20 mm, Billet –38,200/MT, ex-work & excluding GST.

— Shakti Ferro Alloys in Chennai, South Region has offered Rebar at INR 41,000/MT (12 mm), Billet at INR 36,500/MT with regular payment terms, ex-work & excluding GST. As per official trade inquiries are very limited.

— Chennai based plants have recently booked containerized scrap Boring at USD 355/MT loading from West Africa.

— Central Region – Raipur based GI plants have increased guage parity in 11 & 12 by around INR 400/MT which was earlier considered as INR 200/MT between (8-10 to 11-12 guage).

Reference prices as on 4th June 2018

Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research