Indian Steel Market Weekly Snapshot

During the Week-44 (29 Oct-3 Nov’18), Indian spot trades were subdued on average supply movements. As per industry sources, the buyers have lowered their purchases amid festive mood, this has resulted gradual fall in prices.

As per SteelMint’s assessment, in these days the prices of Semis products (Billet & Sponge iron) & Long products have decreased by INR 200-600/MT (USD 3-8). In context to Flat steel, the suppliers have maintained offers and are likely to announce discounts to boost sales.

Iron ore & Pellets: National Mineral Development Corporation (NMDC) has announced roll over in its floor prices for Karnataka e-auctions following its price roll over announcement from its Chhattisgarh mines. Odisha Mining Corporation (OMC) has kept the base prices unchanged for the auction schedule.

Central India pellet prices have hit 2-month low as current Raipur pellet offers were last seen in end Aug’18. Pellet offers have decreased sharply from the last week assessment. Current reference pellet assessment for Raipur is around INR 7,900-8,100/MT (basic) against at INR 8,200-8,400/MT last week. However, buying interest is lower by INR 200-300/MT than current offers. Durgapur pellet price assessment has decreased by INR 300-400/MT to INR 7,600-7,800/MT (delivered) against INR 8,000-8,100/MT last week’s assessment.

Southern India based pellet maker – KIOCL has concluded pellet export deal for Fe 64% content and less than 2% alumina at around USD 132/MT, FoB India.

Indian Imported Scrap market turns standstill ahead of approaching ‘Diwali’ festive holidays. Amid less supportive finish steel demand, liquidity issues and availability of cheaper local scrap very thin trades for HMS scrap reported this week. Participants remain hopeful for pick up in demand after holidays.

Containerized HMS 1 from Dubai heard in the range USD 330-335/MT, CFR Nhava Sheva, narrowed down from USD 335/MT last week. West African HMS 1&2 traded in minor quantity at stable levels USD 320-325/MT, CFR Goa and Chennai. Assessment for Shredded from UK and USA remains at USD 355-360/MT, CFR but hardly any deal heard in the market.

Australian premium hard coking coal prices have been inching down gradually, after having peaked at USD 223/MT FOB Australia (USD 239.55/MT CNF India) in the middle of this month (on 17 Oct’18).

However, hard coking coal prices have picked up by nearly about USD 10/MT during the same period due to supply tightness in the second-tier market.

Presently, Chinese buyers are said to be awaiting clarity on the potential for stricter winter production cuts.

Nevertheless, implementation of the winter production cuts has not started yet and most steels mills are still running at full capacity.

Stringent port restrictions in Southern and Northern China are expected to be enforced until the end of the year, as more quotas will be allocated to thermal coal cargoes in the winter.

CNF China prices may be supported to some extent in the near term as there could be restocking demand by Chinese end-users as winter approaches.

Latest spot prices for the Premium HCC and 64 Mid Vol HCC grade are assessed at around USD 218.25/MT and USD 194.15/MT FOB Australia respectively.

For Indian buyers, the above offers amount to USD 233.25/MT and USD 209.15/MT respectively on CNF India basis.

Indian Semi finished prices slump over disruption of demand-supply due to limited demand over festival season. As per SteelMint assessment, the domestic Sponge iron & Billet prices have declined by INR 200-600/MT (USD 2-8). In this period major fall in Billet seen in Durgapur & Hyderabad by INR 500-600/MT on limited inquiries.

— Indian Sponge iron export offers more or less firm in current week and stood at around USD 360/MT CFR Chittagong, Bangladesh. Limited deals reported.

— This week export offers to Nepal remain volatile amid jump of exchange rate against USD & volatility in domestic prices. The export offers by mid size mills reported at USD 465/MT for Billet (100*100mm) & USD 545-550/MT for Wire rod (5.5mm), ex-mill at Durgapur.

— Vizag Steel concludes 10,000 MT Bloom export tender. As per sources report, the company has concluded 10,000 MT Blooms (200*200mm, IS 2830 GrA) deal at around USD 450-460/MT, FoB.

— NINL likely to resume pig iron production from its plant which was facing shutdown since 1st week of Oct owing to technical issues

— SAIL has offered Steel grade pig iron from its IISCO, Burnpur plant (East India) at around INR 29,000/MT ex-plant. However as per traders buying interest is less price by INR 500-700/MT i.e. INR 28,300-28,500/MT, ex-plant.

— SAIL’s Pig iron auction held on 1st Nov’18 from its Rourkela Steel Plant (RSP) has received poor response. As per participants the company had allotted about 5,900 MT basic grade Pig iron, in which only 500 MT have been sold out at the base price of INR 30,000/MT, ex-plant.

— Jindal Steel has offered Pooled iron at INR 27,800/MT & Granulated pig iron (panther shots) at INR 28,200/MT ex-plant, Odisha. Meanwhile offers for Steel grade pig iron from its Raigarh plant evaluated at INR 30,000/MT ex-plant. The company is being offering quantity discount at INR 100-300/MT.

— RINL (known as Vizag Steel) has kept steel grade Pig iron offers unaltered at INR 31,000/MT ex-plant (Vizag), as per sources

— Tata Metaliks – India’s one of the major producer of foundry grade (high silicon) pig iron has maintained offers firm for November deliveries & assessed at INR 33,800/MT (USD 461) ex-plant, Kharagpur East India.

— SteelMint’s Pig iron export price assessment stood at USD 375-385/MT FoB India, USD 350-360/MT FoB Brazil and USD 360-370/MT FoB Black sea.

Indian Finish Long Steel market continue with limited demand and slow supply movement in overall regions and as per market participants considerable inventories were enough to feel the selling pressure and resulted price contraction by INR 400-600/MT in general regions (TMT & Structure).

Further, Raipur based heavy structure manufacturers have reduced their trade discount range by INR 200-300/MT to INR 600-800/MT and current trade reference prices at INR 42,300-42,700/MT (200 Angle).

Current trade reference rebar prices (12-25 mm) assessed at INR 36,700-37,000/MT ex- Jalna, INR 36,200-36,400/MT ex- Raipur. All prices are basic & excluding GST.

— State owned – Vizag Steel (RINL), has increased its finished long steel prices by INR 200-500/MT (USD 3-7) for Nov’18 deliveries on recent export bookings. The revised prices are applicable from 1st Nov’18, as per sources.

— Delhi government bans all construction activities in Delhi-NCR region till 10th Nov due to rising pollution levels.

— As per the press released on 29th Oct, Prakash Industries achieved highest ever sales volumes of 2,40,375 MT in Q2 FY’19, registering growth of 28% as against corresponding quarter of the last financial year. The company claim that it was due to higher capacity utilisation and operational efficiencies.

— Wire rod trade discount offered by the manufacturers/suppliers in Raipur is almost unaltered compare to last week which is now in the range of INR 1,000-1,200/MT.

Finish Flat Steel: Major steel (HRC & CRC) makers namely JSW Steel, SAIL and Essar Steel have kept prices unchanged for the month of November. Sluggish demand, weaker trade activities amid liquidity issues along with imported bookings attributed for stability in flat steel prices in domestic market.

After roll over, offers from major Indian steel mills HRC (2.5-8 mm) is around INR 46,500-47,000/MT and CRC ( 0.9 mm ) at INR 52,000-53,000/MT. The prices mentioned above are basic prices excluding GST @ 18% on cash payment basis for Mumbai region.

Meanwhile trade participants highlighted that steel makers are likely to announce discounts and rebates post Diwali holidays to escalate buying in domestic market. However prices in traders market remained stable against last week.

Although steep fall in global prices result to lower HRC export offers from India.Thus limited HRC export bookings from India concluded in last month.However Indian importers turned active over import parity from Japan & Korea for Nov -Dec shipments.This compelled Indian steelmakers to keep flat steel prices stable in domestic market.

Indian Raw material and Finished Steel reference Prices as on 3 November 2018 (Week 44)

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

Indian Export Reference Prices as on 3rd November’18

Prices in USD/MT
Source: SteelMint Research