Indian Steel Market Weekly Snapshot

Indian Steel prices were inclined during the 1st half of Week 32 (6-11 Aug 2017) amid improved demand from the domestic & global buyers. However, by the end of week, the producers have been reluctant to cut prices in line with limited buying interest in local market.

As per SteelMint’s assessment, in these days prices of Semis products (Billet & Sponge iron) have increased by INR 400-1,200/MT (USD 5-17) and Finished Long steel by INR 1,200-1,400/MT(USD 17-21). In context to Flat steel, the suppliers have maintain offers with limited trade activities.

Iron ore prices by Odisha merchant miner’s remains unchanged for this week. Odisha iron ore dispatches fell 3% in July amid hampered rake movement.

Jindal SAW (Rajasthan) increased pellet offers by INR 150/MT (USD 2). Offers for Fe 63% grade pellets are assessed around INR 7,650/MT (delivered Kandla) against last assessment of INR 7,500/MT.

Sources reported, demand for low alumina Indian pellets has continued to increase & heard around USD 133/MT, CFR South Korea for September shipments while that for August shipments were at around USD 134-135/MT, CFR levels. As the improved buying interest from major mills of South Korean steel, the mill is aggressively looking to procure pellets for prompt deliveries basis. Following this Godawari Power & Ispat kept sales closed on firm export bookings.

Scrap: Indian imported scrap market witnessed limited trades in the mid of week at stable prices however, with recent downward corrections in global markets, importers turn silent again for more clarity. Cheaper availability of domestic scrap in the most of the regions of the country keep steelmakers preferring local scrap over imported.

Price assessment from UK and Europe containerized Shredded stands at USD 357-360/MT, CFR Nhava Sheva. Few deals for Shredded confirmed at around USD 360-362/MT, CFR from a leading supplier. HMS 1&2 offers have slightly inch up following improved demand to USD 335-340/MT from UAE. Minor trades for West African HMS heard traded in the range of USD 315-320/MT, CFR in containers depending on quality of scrap and loading ports.

Coking coal prices continued on an upward momentum since the beginning of this month amid robust Chinese buying. The recent uptick in trading activity was because end-users were looking to replenish their inventories having stayed away from the spot market last month. Seaborne prices for hard coking coal have started to rebound because import restrictions at ports in southern China have eased. Moreover, the recent increase in metallurgical coke prices in China has supported coking coal prices. Spot prices of the Premium HCC are currently assessed at around USD 182.75/MT FOB Australia.

Semi finished steel market showed improvement on weekly basis, domestic Billet offers rise by INR 400-1,200/MT & Sponge by INR 300-1,000/MT amid volatile domestic trades.

— Indian induction grade billet export offers to Nepal hovering at USD 490/MT ex-mill, Durgapur, Eastern India. The prices inclined about USD 10/MT, W-o-W as against last week offers.

— Indian sponge iron export offers increased by USD 10-15/MT W-o-W, price assessment for 80 FeM sponge lumps are at USD 340-345/MT CPT Benapole (dry land port of Bangladesh & India) and USD 360-365/MT CFR Chittagong, Bangladesh.

— Sources reported, an Indian state owned steel maker has concluded a export tender of 18,900 MT billet for 125*125mm and 150*150mm at around USD 505-510/MT, FoB levels.

— Recent, on 10th Aug, Neelachal Ispat Nigam Ltd (NINL) has increased pig iron prices by INR 200/MT (USD 3). The latest offers for Steel (N1) grade material are assessed at INR 28,100/MT (USD 407), ex-Cuttack, Odisha. While bulk purchase discount remain unchanged at INR 100-400/MT.

— SAIL’s RSP (Rourkela Steel Plant) tender held on 6th Aug’18 to sell about 3,600 MT steel grade pig iron and had received good response as the allotted material have been sold with increased bid prices at INR 28,200-28,300/MT, ex-plant.

— Tata Metaliks – India’s one of the major producer of foundry grade (high silicon) pig iron has maintained offers firm for August deliveries & assessed at INR 33,000/MT (USD 480) ex-plant, Kharagpur East India.

— Jindal Steel has raised prices by INR 500/MT (USD 7.5) and the latest price for Steel grade Pig iron reported at INR 29,500/MT ex-plant, Raigarh & Panther shots (Granulated Pig iron) at INR 28,000/MT ex-plant, Odisha.

— SteelMint’s Pig iron export price assessment stood at USD 375-380/MT FOB Brazil, USD 375-380/MT FOB Black Sea & USD 370-380/MT FOB India.

Indian Finish Long Steel prices surge near about INR 1,200-1,400/MT (USD 17-20) commodity wise with suffice future bookings from last weekend but enhanced prices couldn’t absorbed more than a week as it’s being noticed on down trend mode in last couple of days with lack of buying inquiries.

Further after getting appropriate future bookings for 10-15 days re-rollers doesn’t seems to have selling pressure and on the other hand traders being forced to sell with mild prices to clear their inventories.

In Raipur wire rod trade discount was initial days of week reported at around INR 600-1,000/MT and later lifted to around INR 800-1,400/MT from last couple of days to conclude appropriate trade volumes.

Central region, Raipur based heavy Structure manufacturers offering discount level around INR 800-1,000/MT as per booking quantity and it’s being registered same on weekly basis and current trade reference price range at INR 38,300-38,500/MT (I Beam – 200*100, IS 2062), ex-plant & excluding GST.

Currently rebar (12-25 mm) price assessed at INR 37,300-37,700/MT Ex- Jalna, INR 35,700-36,000/MT Ex- Raipur, INR 39,600-40,000/MT Ex-Chennai. All prices are basic & excluding GST.

— Indian large Mills i.e. SAIL & JSW Steel have reduced rebar prices by INR 500-1,250/MT (USD 7-18) for Aug’18 deliveries amid low seasonal demand as reported by the company. Presently, large mills Rebar prices for 12-32 MM are hovering at INR 40,800-41,300/MT in Mumbai & excluding at 18% GST.

— Wire rod export offers to Nepal by Indian large mills – JSPL & Electro Steels heard at around USD 620-625/MT CFR Raxaul/Jogbani border (Nepal).

— JSW steel long steel production rises significantly by 40% to 0.306 MnT in Jul’18 on Y-o-Y basis. While, production surge by 10% on Q-o-Q basis.

Finish Flat Steel: In the beginning of this week Indian major steelmakers have made announcement for HRC & CRC for August deliveries. Few major mills like JSW & Essar Steel have cut prices by INR 500-750/MT however SAIL has roll over HRC prices. Meanwhile few market sources shared that HRC & CRC trade prices have edged up in few markets.

Previously traders remained under pressure to sell HRC at lower prices over sluggish demand. However post announcement by major Indian mills trade prices of HRC witnessed uptick in few regions over improved bookings.

Recently market sources shared that Steel Authority of India Ltd (SAIL) has increased plate prices by INR 500/MT in the month of August.

Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 45,000-45,500/MT (ex-Mumbai) and INR 45,000/MT(ex-Delhi). The prices for CRC (IS513) 0.9mm is at around INR 50,000/MT (ex-Mumbai) & INR 49,500-51,500/MT (ex-Delhi). And Plates (IS2062 5-10 mm) are hovering in the range of INR 45,000-45,500/MT(ex-Mumbai) and INR 45,000/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST @ 18%.

Indian Raw material and Finished Steel reference Prices as on 11 August 2018 (Week 32)

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

Indian Export Reference Prices as on 11th August’18

Prices in USD/MT
Source: SteelMint Research