Indian Steel Market Weekly Snapshot

This week (9-16th Mar’19) Indian spot trade activities was not upto the mark on seasonal increase in supply of sponge iron which has put pressure on prices. As per participants, the trades have been dull owing to closing of financial year & festive mood, which has made poor outlook for steel industry.

As per SteelMint’s assessment, in these days the prices of Semis products – Sponge iron & Billet have plunged by INR 400-1,200/MT (USD 5-17). Following the trends, finished Long steel prices being fall in same proportion upto INR 1,200/MT through the mid sized mills.

Meanwhile, Flat steel prices also reduced by INR 500-1,000/MT (USD 7-15) through the traders end.

Iron ore and Pellets

Odisha iron ore miners kept the prices unchanged but market participants are expecting offers to move down in near short term considering decline in pellet & sponge prices. NMDC’s 20,000 MT DR CLO (Calibrated lumps ore) fetches premium up to INR 650/MT for this conducted an e-auction.

— Indian pellet offers have exhibited downturn this week and witnessed decline in the majority of markets. Central India, Raipur based pellet manufacturers have reduced offers to INR 6,300/MT. Southern India, Bellary pellet offers being fall to INR 7,000-7,100/MT against beginning of this week at INR 7,100-7,200/MT. The prices are ex-plant & for Fe 63%.

— According to the market participants report to SteelMint, Chinese mills continue to prefer low-grade iron ore which in turn kept inquiries for Indian pellets on the lower side. Although no firm bids/offers were heard, but currently SteelMint’s assessment for India pellet export stands at around USD 116-117/MT, CFR China.

Coal

Seaborne premium hard coking coal prices edged down over the week, as the Chinese market demand weakened with buyers holding back restocking activity—supposedly owing to prolonged uncertainty concerning stricter port restrictions for Australian cargoes.

Reportedly, customs authorities in Fangcheng, Guangxi China informed end-users and traders that cargo discharge would be limited during workdays, and more tests would be conducted for every 500 million tonnes of coal unloaded. Accordingly, customs clearance can be well expected to take about three months.

Similarly, buying interest from the Indian market appears to have considerably slowed down this week, as the current price levels are being considered unreasonable by most steelmakers given their prevalent stock levels. Market sources have indicated that buyers are preferring to buy seaborne coking coal on a floating basis rather than fixed prices, with the expectation that prices may continue their downward trend in the near term.

— Latest offers for the Premium HCC grade are assessed at around USD 213.50/MT FOB Australia & USD 225.20/MT CNF India.

Scrap

Indian imported scrap market remained standstill in terms of prices on limited buying as most of the buyers followed a cautious approach amid weakened local semi-finish prices and limited available offers from suppliers end.

SteelMint’s assessment for containerised Shredded stand in the range USD 330-335/MT, CFR Nhava Sheva. Few minor trades heard at USD 333-335/MT, CFR. HMS 1 from Dubai assessed stable at around USD 325/MT CFR, while West African HMS 1&2 traded around USD 307-310/MT, CFR Mundra and USD 315/MT, CFR Chennai.

Indian domestic scrap prices in Mumbai and Chennai markets showed marginal fall of INR 200-300/MT (W-o-W) amid appreciation of INR against USD and demand concerns in semis market.

Semi Finished

Indian Billet prices fall by INR 600-1,200/MT this week following limited demand of finished goods amid fall in sponge iron offers. In these period major fall of INR 1,000-1,200/MT in Billet seen in Jalna & Mumbai – Western India. Inline as per the data maintained by SteelMint, Indian induction grade billet prices hit 1 month low.

Further, Sponge iron offers slump by INR 400-800/MT W-o-W over seasonal rise productions, falling raw materials & low demand. Amid significant fall, the prices of Sponge iron in Southern region touch near about 7 month low on 14th Mar’19.

— Indian sponge iron export offers for 78-80 FeM, hovering at USD 310/MT CPT Benapole (dry land port of Bangladesh & India) and USD 330/MT CNF Chittagong, Bangladesh. Offers fall marginally by USD 3-5/MT, W-o-W.

— Indian mid sized mils export offers to Nepal stood at around USD 450/MT for Billet (100*100 mm) & USD 520/MT for Wire rod (5.5 mm) ex-mill at Durgapur, Eastern India. Freight cost to Nepal at around USD 30/MT CNF Raxaul border.

— Rashtriya Ispat Nigam Limited (RINL) has invited a tender for export of 8,127 MT Billets (3 rakes) to Nepal. Interested bidders can submit their bids till 16 Mar’19 at 14:30 hrs. However, as per sources, the company’s 5,418 MT Bloom (150*150 mm) export tender to Nepal which bid due date was on 8th Mar’19, have been cancelled owing to low bids and the highest bids reported at USD 420-425/MT, ex-mill.

— RINL had invited a tender for export of 30,000 MT Blooms (150*150 mm IS 2830 Gr A & IS 2830 C2- MMn Gr A) and 10,000 MT Billets (77*77 mm, 65*65 mm IS 2830 Gr A) whose bid due date was till 04 Mar’19, has concluded at around USD 450/MT, FoB India – Sources.

— Jindal Steel has reduced pig iron prices by INR 200-300/MT W-o-W & offering steel grade at INR 27,600-27,700/MT ex-plant, Raigarh, Central India.

— MMTC- India’s largest and state-owned trading house, has floated export tender of 30,000 MT non-alloy Pig Iron on behalf of NINL. The due date for submission of bids is 14:30 hrs on 26 Mar’19 and bid validity is till 2nd Apr’19.

— Vizag Steel has issued a export tender of 25,000 MT basic grade steel making Pig iron for any country other than Nepal. This tender is due on 18 Mar’19 and bid validity is till 25 Mar’19.

— SAIL’s Rourkela Steel Plant tender held on 14th Mar’19 to sell about 7,300 MT steel grade pig iron, had received moderate response. The base price for the tender was quoted by RSP at INR 27,100/MT and near about 42% (3,000-3,200 MT) material have been sold.

— SteelMint’s Pig iron export price assessment stood at USD 355-360/MT FoB India, USD 330-340/MT FoB Brazil & USD 340-350/MT FoB Black sea.

Finish Long

Indian Finish long steel market seems inactive as response was quite dull from the market participants and slow trade activities registered across regions, this has resulted price fall of up to INR 1,200/MT in Rebar & Structures.

Further dull sentiments and strengthening stock levels might urge Industrialist to further reduce price range as per market requirement, shared by sources.

Current trade reference rebar prices (12-25 mm) are assessed at INR 37,600-38,000/MT ex-Jalna & INR 35,500-35,800/MT ex-Raipur; basic & excluding GST.

— Central India based heavy structure manufacturers are maintaining trade discount of INR 300-400/MT and current trade reference prices are at INR 39,700-40,000/MT (200 Angle) ex-work. Further, large mills structure offers for (E-250) A grade – stands at INR 44,600/MT (250 NPB) ex-stock yard, Ghaziabad.

— As per market participants, this week rebar sales is not very encouraging and dealers/distributors are bound to trade at lesser prices in order to push sales. Presently, large mills rebar price assessment stood at INR 41,000-41,500/MT ex-Chennai, 12 mm & excluding 18% GST.

— As per market reported, RINL (Vizag Steel) will going to commission its forged wheel factory at Lalganj near Rae Barelli in UP by Sep’19, marking its first geographical and product diversification. The firm had signed an agreement with the Indian Railways for setting up this factory during 2013. The unit will make one lakh pieces of wheels, which would be sold to the Railways.

Flat Steel

This week Indian HRC prices have softened over dull trades and sluggish buying prevailing in domestic market. Few traders reported marginal fall in HRC prices amid tedious buying, while in other region prices have remained range bound.

Current trade reference prices in traders market for HRC (IS2062) 2.5 mm-8 mm is around INR 42,000-42,500/MT ex-Mumbai, INR 42,500/MT ex-Delhi & INR 45,000/MT ex-Chennai. The trade reference prices for CRC (IS513) 0.9 mm is hovering in the range of INR 46,500-47,000/MT ex-Mumbai, INR 47,250-49,000/MT ex-Delhi & INR 51,000/MT ex-Chennai. The prices are basic & excluding GST on cash payment basis.

Domestic HRC trades remained slow amid end of this fiscal. Meanwhile announcement of general elections in Apr’19 and festival of Holi around the corner have weakened trades in domestic market. However in the beginning of this month major steel mills have raised HRC & CRC prices by INR 1,000-1,500/MT in line with higher raw material cost and upsurge in global steel prices.

— Rourkela Steel Plant, a unit of Steel Authority of India (SAIL), invited a tender for sale of 5,000 MT to 10,000 MT Prime Mild Steel Hot Rolled Plates(NON-ALLOY/MICRO ALLOYED). The due date for submitting the bid is 18 Mar’19 till 16:00 Hrs

Reference Prices as on 16 March 2019 (Week 11)

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

Indian Export Reference Prices as on 16th March’19

Prices in USD/MT
Source: SteelMint Research