Indian steel market observed surge in prices in the second half of week 5 (28th Jan- 2nd Feb) as demand improved from the domestic buyers.
During the week prices of Semis & Finished steel products through the mid size mills surge approximately by INR 100-400/MT (Upto USD 6) in across major Indian markets. Inline, the Flat steel products registered increase of INR 750-1,000/MT by major steel manufacturers.
Iron ore and Pellets
NMDC Ltd, India’s biggest iron ore producer, has cut prices of the mineral up to 11% percent for the month. Iron ore price cut by the miner upto INR 200-380/MT for February from its Chhattisgarh mines.
Durgapur pellet prices have witnessed an increase by INR 100-300/MT to INR 5,800-6,000/MT this week against last week’s assessment of INR 5,700-5,800/MT.
According to market sources report to SteelMint, an Odisha based pellet maker has concluded an export deal to China recently for 50,000 MT Pellets for Fe 64% grade pellets and 3% Alumina. As per sources, the deal has been concluded at USD 111-112/MT, CFR China for prompt shipments. Amid Vale disruption & expected supply disruption, Indian pellet exporters are eyeing sharp hike in Indian pellet export prices. Current assessment at around USD 116-118/MT, CFR China.
Coal
Seaborne premium hard coking coal prices have started recovering since the middle of last week on the back of positive buying sentiment in China, although the 64 mid-vol prices remained largely stable.
In China, fresh trades are presently being made to end-users for their restocking purposes ahead of the Lunar New Year, while domestic supply remains tight as mining activities have slowed down during the winter. Lately, this has contributed to a sustained increase in Chinese prices for domestic materials, which could eventually result in end-users seeking seaborne coals. Meanwhile, the Chinese government has imposed port restrictions on coking coal imports at several ports in Northeast China, effective Tuesday.
Latest offers for Premium HCC and 64 Mid Vol HCC grades are assessed at around USD 201/MT and USD 179/MT FOB Australia respectively. For Indian buyers, the above offers amount to USD 210.50/MT and USD 188.55/MT respectively on CNF India basis.
Scrap
Following a jump in global scrap prices, imported scrap offers to India also moved up. Suppliers remained optimistic about high prices amid tight availability and decent demand from Turkish steel mills.
SteelMint’s assessment for containerised Shredded from the USA and UK stands at around USD 335/MT, CFR Nhava Sheva, up USD 10-15/MT against the last weeks’ report of USD 320-325/MT, CFR.
Dubai based containerised HMS 1 assessed at around USD 320-325/MT, CFR Nhava Sheva. While limited trades from the Middle East HMS heard in the range of USD 320-325/MT, CFR depending on quality.
Semi Finished
On weekly basis semis offers rise slightly, domestic Billet offers surge by INR 100-500/MT & Sponge iron by INR 200-400/MT.
— Indian sponge iron export offers to Bangladesh price assessment for lumps of grade FeM 78-80, recorded at USD 320-325/MT CPT Benapole (dry land port of Bangladesh & India) and USD 340/MT CFR Chittagong, Bangladesh.
— Indian induction grade billet (100*100 mm size) export offers to Nepal are reported at USD 443-447/MT (ex-mill at West Bengal), equivalent to USD 468-472/MT CFR Nepal (Raxaul border).
— Rashtriya Ispat Nigam Limited has concluded the tender of 2 lots for 15,000 MT bloom (IS 2830 C20MMn GR A) each at around USD 410-415/MT, FoB India.-Sources
— Rashtriya Ispat Nigam Limited (RINL) has invited tender for export of 2,709 MT Wire rods and 8,127 MT Billets to Nepal. Interested bidders can submit their bids till 05 Feb’19 at 15:00 hrs
— MMTC, a leading international trading company in India and one of the major global players in minerals trade, has invited tender for export of 5,000 MT Billets to Nepal. Interested bidders can submit their bids till 20 Feb’19 at 14:30 hrs.
— NINL domestic Pig iron price circular validity expired on 31st Jan’19. The company’s offer for Steel (N1) grade hovering at INR 26,500-26,900/MT, N2 grade at INR 27,500/MT & Foundry (High silicon) grade at INR 28,000/MT; ex-Cuttack, East India.
— RSP (Rourkela Steel Plant) tender held today (2nd Feb) to sell about 12,000 MT steel grade pig iron. The base price of the tender is about INR 26,800/MT ex-plant- Sources.
— MMTC cancels 30,000 MT Pig iron export tender amid limited response. The company issued new export tender which is due to expire on 12 Feb’19.
— SteelMint’s Pig iron export price assessment stood at USD 340-350/MT FoB India, USD 310-320/MT FoB Brazil & USD 320-330/MT FoB Black sea.
Finish Long
Indian Finish Long Market remained slight positive by around INR 100-300/MT in most of the regions except few locations and that also notified with minor disturbance.
Market participants are having positive sentiments and trade volumes were slightly improved but not moving as per strengthening prices as buying inquiries are still hovering with some uncertainty in south region particularly.
Whereas stock levels are maintained in west regions (Gujarat/Maharashtra) and trade volume has been concluded through traders/retailers.
Raipur based Heavy structure manufacturers have slightly increase discount range to INR 700-800/MT and current trade reference prices at INR 41,500-41,900/MT (200 Angle) commercial grade upon booking quantity.
Current trade reference rebar prices (12-25 mm) assessed at INR 36,600-36,900/MT Ex- Jalna, INR 35,000-35,200/MT Ex- Raipur. All prices mentioned above are basic & excluding GST.
— Major Indian mills are going to increase in long products prices by INR 500-1,000/MT for Feb’18 deliveries as per sources but official declaration is still awaited.
— Presently, price assessment of rebar through the large players is close to around INR 39,500-40,000/MT ex-Delhi. Prices are for 12 mm size & excluding 18% GST.
— Wire rod trade discount offered by the manufacturers/suppliers in Raipur is more or less same compared to last week which is now at INR 800-1,100/MT.
— Steel Authority of India Limited (SAIL) one of the largest steel producers in India has recorded a significant increase in wire rod production by 46% in Dec’18 and stood at around 19,000 MT against Nov’18 which was 13,000 MT as per JPC- Ministry of Steel.
Finish Flat
Major Indian steel manufacturers have announced hike in HRC & CRC prices by INR 750-1,000/MT for the month of February as they are speculating global flat steel prices will increase post Chinese Lunar New Year holidays which is scheduled in first week of Feb.Meanwhile surge in global prices may reduce imported volumes of HRC to India in turn pushes HRC prices in domestic market.
After increase manufacturer’s effective prices of HRC (2.5-8mm, IS2062) is assessed around INR 41,250/MT (ex-Mumbai) and CRC is (0.9mm IS 513GR) is around INR 46,250/MT (ex-Mumbai).
Previously, in the month of January, Indian steel mills had rolled over flat steel prices amid cost effective imports and sluggish trades in domestic market.
However on the other hand domestic HRC prices in traders market remained on lower side. Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 40,000/MT (ex-Mumbai) and INR 40,500-41,000 /MT (ex-Delhi). The prices for CRC (IS513) 0.9mm is hovering in the range of INR 45,500/MT (ex-Mumbai) and INR 45,000-47,000/MT (ex-Delhi).
The prices mentioned above are basic prices excluding GST@18% on cash payment basis.
Indian Raw material and Finished Steel reference Prices as on 2 February 2019 (Week 5)
| Products | Regions | Taxes | Prices in INR/MT | W-o-W |
| Pellet Fe 63%, 6-20 mm | Ex-Barbil,Loaded to wagon | GST at 5% Extra | 5,000 | 0 |
| Iron ore 6-40 mm, Fe 65% | Chhattisgarh | Excluding Royalty, DMF & NMET. GST @ 5% extra | 2,600 | -300 |
| 5-18mm, Fe 63% | Odisha | Ex-mines, Incld Royalty, DMF & NMET, GST extra | 3,850 | 0 |
| Fines Fe 63% | Odisha | Ex-mines, Incld Royalty, DMF & NMET, GST extra | 1,650 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 211 | +2 |
| Scrap HMS (80:20) | Ex-Alang | GST at 18% Extra | 26,200 | +400 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 20,500 | 0 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 19,300 | +300 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 27,800 | 0 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 32,150 | +150 |
| Rebar (12-25mm) | Ex-Raipur (Medium Scale) | GST at 18% Extra | 35,100 | +100 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 38,000 | -100 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 39,200 | +300 |
| HRC (2.5-8 mm)* | Ex-Mumbai | GST at 18% Extra | 40,000 | -300 |
| CRC (0.90mm)* | Ex-Mumbai | GST at 18% Extra | 45,500 | 0 |
| HR Plate(5-10mm)* | Ex-Mumbai | GST at 18% Extra | 40,800 | +300 |
Prices are Ex-works, Exclusive of GST at 18%
Traders Market*
Indian Export Reference Prices as on 2nd February’19
| Commodity | Particular/Delivery | Size and Grade | Prices | 1W | 1M |
| Pellet | FOB India | 6-20 mm, Fe 64% | 106 | 98 | 102 |
| Scrap | CNF India | HMS(80:20), Europe | 313 | 305 | 320 |
| Billet | FOB India | 150*150, IS 2830 | 410 | 413 | 420 |
| Pig Iron | FOB India | Steel Grade | 345 | 345 | 360 |
| HRC | FOB India | 2.5-8mm, IS 2062 | 515 | 493 | 492 |
Prices in USD/MT
Source: SteelMint Research
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