Indian Steel Market Weekly Snapshot

Indian steel market moved downwards in week-25 (18-23rd June) owing to weak trade activities. The producers in major markets stated downfall in spot trade volumes owing to seasonal poor demand of finished steel.

Also, export inquiries observed thin from Nepal, which is one of the major buyer of Indian induction grade Billets from eastern region. On an average Nepal’s monthly billet import from India recorded at 70,000-90,000 MT. Sponge export inquiries was also mute in the week owing to festive off in Bangladesh.

As per SteelMint assessment, during the week Indian Semis & Long steel prices down approximately by INR 500-1,500/MT (USD 7-22) in across major producing markets. Similarly the slight fall in prices being observed in Indian flat steel industry over limited trade inquiries.

Iron ore and Pellets: India’s largest iron ore miner – NMDC has cuts Iron ore (fines and lumps) prices by INR 300/MT (w.e.f 22 Jun’18) in Karnataka on rising imports by JSW Steel; prices in Chhattisgarh kept unchanged.

Domestic pellet prices have remained strong with arrival of monsoons. Prices increased on weekly basis by INR 200-300/MT in Central India (Ex-Raipur) & INR 100/MT in East India (Durgapur). Inline, Jindal SAW (Rajasthan) has increased pellet prices further by INR 150/MT. However, Southern India (Bellary) based pellet makers have kept prices unchanged.

Scrap: Indian scrap importers remained less active again this week and prices remain almost stable. Few steelmakers preferred domestic scrap which was available cheaper over imported. Most of the participants kept waiting to analyse global price trends. Three bulk vessels comprising around 96,453 MT scrap from USA are expected to arrive at Indian ports shortly.

Price assessment in containers for Shredded from UK and USA stood stable at USD 380-385/MT while South Africa and Dubai origin HMS 1&2 scrap assessed in the range of USD 370-375/MT on the CFR Nhava Sheva basis. Europe and UK origin HMS sold in limited quantities in the range of USD 345-350/MT, CFR depending on the quality of scrap in containers.

Coking Coal: Seaborne premium hard coking coal prices have remained relatively stable this week as trading activity in the commodity markets paused, with Chinese buyers holding back for clarity on the logistical constraints of Australian supply and possibility of prices coming down as a result. Nevertheless, the ongoing supply disruption of Australian metallurgical coal would be eased out as rail freight operator Aurizon has offered to recommence its normal services on the Central Queensland Coal Network. Expectedly, this might lead to a correction in the escalated prices of Coking coal globally. Export offers for the premium HCC are assessed at around USD 200/MT FOB Australia, which amounts to around USD 214/MT CNF India.

Semi Finished: Indian Semis prices decline with weak trends & inquiries remained hand to mouth, as per producers. Inline export inquiries also weak for both Sponge iron & Billet. Presently the mill owners who largely deals in domestic market are eyeing for export deals due to seasonal slowdown in domestic trades on approaching monsoon.

As per the analysts report, Billet offers fall in the range of INR 800-1,500/MT (USD 11-22) & Sponge iron by INR 300-700/MT (USD 4-10) Week-on-Week

— Nepal mills have limited fresh bookings due to closing of Nepalese financial year (15th July), monsoon season & falling Indian domestic steel prices. The current export offers of Indian induction grade Billets to Nepal hovering at USD 525/MT, down by USD 15-20/MT against SteelMint’s last assessment at INR 540-545/MT ex-mill, Durgapur, East India.

— Indian sponge iron export offers to Bangladesh for lumps of grade FeM 78-80, recorded at USD 360/MT CPT Benapole (dry land port of Bangladesh & India) and USD 380/MT CFR Chittagong, Bangladesh. These prices are similar against last week assessment, but no fresh deals have been reported due to festive off in Bangladesh.

— Vizag Steel has invited the tender for export of 11,008 MT Billets, 5,504 MT Blooms and 5,504 MT Wire rods to Nepal. While one more export tender for ocean invited of 10,000 MT Billets, 20,000 MT Blooms and 16,000 MT Rounds. The due date for bid submissions of both the tenders is 25 Jun’18.

— SAIL has floated a export tender for 10,800 MT Prime Mild Steel Non-Alloy Concast billets (125*125mm) from its Durgapur Steel plant. The due date for submission of bids is 17:00 hrs as per IST on 26 Jun’18.

— Tata Metaliks – India’s one of the major producer of foundry grade (high silicon) pig iron has maintained offers firm for June deliveries & assessed at INR 33,800/MT (USD 497) ex-plant, Kharagpur East India.

— Indian Pig iron industry waiting for NINL’s fresh price circular. As per participants, the company has delayed its fresh price circular in line with logistic issue as about 70-80% material is being to be dispatch which was booked in the last offer price on 5th June. The latest price assessment for Steel grade Pig iron are stood at INR 29,600-29,800/MT ex-Raipur & INR 29,300-29,700/MT ex-Durgapur.

— SteelMint’s Pig iron export price assessment stood at USD 385-395/MT FoB India, USD 375-385/MT FoB Brazil and USD 385-390/MT FoB Black sea.

Finish Long Steel have been registered narrow price range amid low trade volumes along with dull inquiries in overall region and the price range has been lessen by INR 1,000-1,500/MT (USD 14-22); commodity wise.

In line with declining Sponge, Billet & Scrap prices in major regions, long steel prices doesn’t seem to be stable as scrap traders got active after Ramadan festival in specified regions & further correction might get noticed as per participants.

— Rathi Steels based North region has decreased the price range by around INR 300/MT on week basis and currently offering 12 mm Rebars at INR 44,800/MT, ex-work & excluding GST.

— Currently Rebar price assessed at INR 39,700-39,900/MT ex-Jalna, INR 39,800-40,000/MT ex-Raipur & INR 40,300-40,600/MT ex-Chennai. All prices are basic & excluding GST.

Flat Steel Market: Stability prevails in domestic HRC prices over low demand. Limited bookings and low sales volumes has kept flat steel prices under pressure in domestic market.

“Arrival of early monsoon has lead to subdued demand in domestic Flat market. Buyers are also reluctant to purchase the material and are waiting for prices to decline” quoted by a trade participant.

Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 45,500-46,000/MT (ex-Mumbai), INR 46,000/MT (ex-Delhi), INR 47,000/MT (ex-Chennai), excluding GST@18%.

In line, market sentiments in CRC were also reported dull and traders in few regions have reduced the prices by INR 500/MT. Currently trade reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 51,500/MT (ex-Mumbai), INR 53,000/MT (ex-Delhi) and INR 52,000/MT (ex-Chennai), excluding GST@18%.

Indian Raw material and Finished Steel reference Prices as on 23 June 2018 (Week 25)

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

Indian Export Reference Prices as on 23rd Jun’18

Prices in USD/MT
Source: SteelMint Research