The price fall continue in Indian domestic steel market on demand concern. As per assessment the prices of Sponge iron have slump about INR 200/MT and Billet by INR 200-600/MT (USD 3-9), day-on-day.
As per market participants, inventories have increased with the standalone mills due to limited trade volume, hence the manufacturers are eyeing for production cut in line to match supply-demand.
SteelMint’s latest price assessment for induction furnaces billet in Indian market stood at INR 31,500-35,200/MT (USD 457-512) ex-plant.
Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 19,100-21,300/MT (USD 277-310); prices are ex-plant & excluding GST.
Rupee & BSE Sensex
— On 11th July 2018 (Wednesday) INR to USD exchange rate stood at INR 68.78
— BSE Sensex closed at 36,265(+26) on Wednesday, as against last day (Tuesday) at 36,239(+304)
Raw material
— KIOCL has recently concluded deal of 50,000 MT pellets of Fe 64% grades (less than 2% alumina) at around USD 117-118/MT, FoB India for July shipment – Sources
— JSW Steel (Dolvi) has procured 48 rakes from NMDC Chhattisgarh mines in Jun’18, down slightly by 6% as against 51 rakes in May’18.
— Melting scrap offers in Western India- Gujarat fall by INR 600/MT in a day trade activities.
— South African RB2 (5500 NAR) coal offers are assessed at USD 92/MT on FoB basis & USD 107/MT CNF India.
— Indian government has kept export duty unchanged at 10% for iron ore exported from NMDC to Japanese and Korean mills under Long Term Trade Agreement.
Semi Finished
— As per reports, South India based a producer concludes small lots of Billet export deal to Myanmar at around USD 521/MT CFR, quantity around 2,000 MT.
— Raipur, Central India based Integrated plants offering Sponge P-DRI at INR 19,400-19,600/MT & Sponge DR CLO grade at INR 22,200-22,400/MT ex-plant
— Rashmi Metaliks in Durgapur has reduced Sponge prices by INR 200-300/MT today and quoted Sponge P-DRI at around INR 20,000/MT, Sources.
— Govindam Sponge, an Odisha based plant offered FeM 80 sponge mix material at INR 20,900-21,000/MT & fines at INR 20,500/MT ex-plant; trade activities are firm at these offers an official reported.
— BIOP Steels in South India has offered FeM 80 & 82 C-DRI lumps at INR 19,400/MT & INR 19,800/MT ex-plant, Karnataka. As per official, offers unaltered due to average demand.
— Hyderabad, South India based steel manufacturers kept offers unaltered, offering Billet, FeM 80 P-DRI & 28 MM Rebar at INR 34,000/MT, INR 18,800-19,000/MT & INR 36,000/MT. prices are ex-plant & excluding GST.
Finish Long
— Kalika Steel Alloys in Jalna reduce their prices by around INR 300/MT day-on-day & offering 28mm rebars at INR 35,000/MT ex-plant & excluding GST. As per official view, demand is slow & might remain under pressure.
— North region based Rathi Steels have decreased their prices by around INR 250/MT on day basis and offering 12 mm at INR 40,900/MT, size – 12 mm & excluding 18% GST.
— East region based – Baba Smelter Pvt. Ltd has reduced their Structure (Basic – 125, 150 Channel) offers by around INR 250/MT on day basis & offering basic at INR 39,050/MT, ex-work & excluding GST.
— Central region, Raipur based brand – SPEED TMT have decreased their prices by around INR 300/MT on day basis and offering 28 mm at INR 34,500/MT, ex-work & excluding GST.
— Central region (Raigarh) based Scan Group branding Shrishti TMT having monthly production capacity 20,000 MT & total plants capacity around 70,000 MT monthly in other states, has reduced offers by INR 700/MT & offering 28 mm rebar at INR 34,800/MT, ex-work & excluding GST.
— Chennai based manufacturer Kamachi Industries Ltd having monthly production capacity around 40,000 MT branding as KAMACHI TMT unchanged their offers on day basis & reported 12 mm at INR 41,000/MT, ex-plant & excluding GST.
— Jalna based rebar manufacturer Rajuri Steel Pvt Ltd decrease their offers by INR 300/MT on day basis & offering 28 mm rebar at INR 35,000/MT, ex-work & excluding GST.
— Gujarat based Shreeyam Power & Steel Industries Ltd offering Billet at INR 33,500/MT, excluding GST.
— Wire Rod manufacturers based in Raipur are offering discount by INR 1,000-1,200/MT.
Reference prices as on 11th July 2018
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| Scrap | Ex-Mumbai | HMS(80:20) | 24,400 | 24,300 | 24,500 | + 100 | 25,000 | 25,900 |
| Ex-Chennai | HMS(80:20) | 23,500 | 23,400 | 23,600 | 0 | 24,100 | 26,000 | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 20,900 | 20,800 | 21,000 | – 100 | 21,900 | 23,000 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 20,800 | 20,700 | 20,900 | 0 | 20,800 | 20,800 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 21,300 | 21,200 | 21,400 | – 100 | 21,800 | 21,700 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 19,100 | 19,000 | 19,200 | 0 | 19,200 | 19,900 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 19,800 | 19,700 | 19,900 | – 200 | 20,850 | 21,800 |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 19,500 | 19,400 | 19,600 | – 50 | 19,950 | 19,700 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 18,300 | 18,200 | 18,400 | 0 | 18,500 | 19,200 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 18,800 | 18,700 | 18,900 | 0 | 19,200 | 20,200 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 34,700 | 34,600 | 34,800 | – 600 | 36,100 | 38,300 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 31,900 | 31,800 | 32,000 | – 400 | 33,500 | 35,800 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 31,000 | 30,900 | 31,100 | – 600 | 32,200 | 34,800 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 31,300 | 31,200 | 31,400 | – 300 | 32,900 | 34,700 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 31,700 | 31,600 | 31,800 | – 500 | 33,200 | 35,900 | |
| Ex-Chennai | 3.5 x 4.5 Inch, IS 2830 | 34,000 | 34,000 | 34,200 | – 200 | 34,300 | 35,000 | |
| Ex-Hyderabad | 3.5 x 4.5 Inch, IS 2830 | 33,700 | 33,600 | 33,800 | 0 | 33,700 | 34,700 | |
| Billet | Ex-Mandi Gobindgarh | 125×125 mm, IS 2831 | 35,200 | 35,100 | 35,300 | – 500 | 36,500 | 38,800 |
| Ex-Durgapur | 125×125 mm, IS 2831 | 32,400 | 32,300 | 32,500 | – 400 | 34,000 | 36,200 | |
| Ex-Rourkela | 125×125 mm, IS 2831 | 31,900 | 31,800 | 32,000 | – 600 | 33,100 | 35,400 | |
| Ex-Raipur | 125×125 mm, IS 2831 | 32,000 | 31,900 | 32,100 | – 500 | 33,900 | 35,750 | |
| Ex-Mumbai | 125×125 mm, IS 2831 | 32,000 | 31,900 | 32,100 | – 400 | 33,500 | 36,100 | |
| Ex-Chennai | 125×125 mm, IS 2831 | 34,500 | 34,500 | 34,700 | – 200 | 34,800 | 35,500 | |
| Ex-Hyderabad | 125×125 mm, IS 2831 | 34,000 | 33,900 | 34,100 | 0 | 34,000 | 35,000 | |
| TMT | Ex-Delhi/NCR | 12-25 MM, IS 1786- 500 Fe | 39,700 | 39,500 | 39,900 | – 200 | 41,200 | 43,300 |
| Ex-Durgapur | 12-25 MM, IS 1786- 500 Fe | 37,100 | 36,900 | 37,300 | – 200 | 38,500 | 41,050 | |
| Ex-Raipur | 12-25 MM, IS 1786- 500 Fe | 36,700 | 36,500 | 36,900 | – 300 | 38,300 | 40,500 | |
| Ex-Mumbai | 12-25 MM, IS 1786- 500 Fe | 37,000 | 36,600 | 37,100 | – 500 | 38,000 | 39,800 | |
| Ex-Chennai | 12-25 MM, IS 1786- 500 Fe | 39,500 | 39,400 | 39,800 | – 100 | 39,800 | 40,800 | |
| Ex-Hyderabad | 12-25 MM, IS 1786- 500 Fe | 38,500 | 38,300 | 38,700 | 0 | 38,750 | 39,500 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
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