Indian Steel Market Weekly Snapshot

Indian steel prices rally during the week-51 (14-21 Dec’18) on improve domestic demand & rising raw material prices.

The secondary steel producers claimed that, the consistent increase in raw materials has pushed up the input cost. Also as the demand has improved which resulted in price hike.

As per SteelMint assessment, this week prices of Semis products have inclined by INR 700-1,700/MT (USD 9-24) & Finished long steel by INR 1,000-2,000/MT (USD 14-28). Meanwhile, the domestic Flat steel prices more or less firm on a week basis.

IRON ORE and PELLETS

Odisha’s major merchant miners namely Serajuddin, KJS Ahluwalia & Kaypee, KN Ram and Rungta mines have increased iron ore fines and lump offers by INR 400/MT this week.

— Government of India approved the mining plan of NMDC to enhance the production of iron ore from Kumaraswamy Iron Ore Mines from 7 MTPA to 10 MTPA for the years 2020-21 and 2021-22.

— SAIL has extended due dates for fines sale of 28,000 MT to 15th Jan’20 against last due date of 30th Dec’19 from its Rajhara mines, Bhilai (Chhattisgarh).

— PELLEX increased by INR 400/MT to INR 6,650/wmt (DAP Raipur) in recent deals reported in a week. Total of around 61,000 MT deals were reported to Raipur and Chandrapur sponge makers in a week. Central India based pellet makers raised offers by INR 300/MT to INR 6,600/MT EXW-Raipur. Bellary based pellet makers sold around 50,000 MT pellets at the range of INR 6,200-6350/MT (EXW) this week. Durgapur pellet offers also increased sharply by INR 400-500/MT W-o-W to INR 6,400-6500/MT.

— KIOCL concludes pellets export deal to China for Fe 65% grade (less than 1% Al) at USD 111/MT, FoB for prompt loading today. However, SteelMint Pellet export assessment for the regular grade (Fe 64% and 3% Al) stands at USD 113-114/MT, CFR China.

— India’s crude steel output inched down by 2% in Nov’19 to 8.934 MnT as compared to 9.089 MnT a month ago.

COAL

Australian premium low-volatile hard coking coal prices inched up modestly this week, despite more transactions getting concluded to end users in China. At this juncture, however, only China has been observing a plethora of trading activities on the back of their bullish metallurgical coke market, while India among other Asian markets remains silent.

The Asian seaborne market has started selling spot shipments of Australian premium medium volatile hard coking coal with deferred laycans, with the January-loading supply seemingly depleted after a large volume of bookings were done over the past few weeks. Consequently, China’s imported coking coal stocks at ports have declined, with total stocks at the five major Chinese ports dropping by 3% week-on-week to 6.7 MnT as of last week.

— Latest offers for the Premium HCC grade are assessed at around USD 136.00/MT FOB Australia and USD 150.45/MT CNF India.

FERROUS SCRAP

Imported scrap offers to India continued to increase this week, however trades remained limited with dull buying interest at high offers. SteelMint assessment for containerized Shredded from the UK/ Europe to India move up to USD 310/MT, CFR Nhava Sheva. Most European and US yards would reopen in the 1st week of Jan’20 after winter holidays.

Offers for HMS 1&2 (80:20) from the UK stood in the range of USD 275-280/MT CFR. UAE origin HMS 1 & 2 super (ci gi 4-5%) from Dubai was reported at around USD 278-279/MT CFR Nhava Sheva, while HMS 1 (no ci gi) stood at USD 285/MT CFR levels.

SEMI FINISHED

Indian Sponge & Billet market showed improvement on a weekly basis, domestic sponge iron offers moved up by INR 800-1,400/MT & Billet prices shoot upto INR 1,700/MT.

Meanwhile, it is learned that, the mills don’t have much stock of billet & sponge iron, specifically in central region due to healthy orders in hand. Also, supply of billet is limited in eastern India on strong export demand from Nepal.

— Indian sponge iron export offers moved up by USD 10/MT this week, however no fresh deals and the price range sands at around USD 280-283/MT CPT Benapole (dry port of India & Bangladesh). This is equivalent to USD 295-298/MT CFR Chittagong, Bangladesh.

— Indian induction grade BILLET (100*100mm) export offers up by USD 3-5/MT and deals learned at around USD 400-405/MT CPT Nepal. Around 3 rakes of booking reported by Durgapur based manufacturers.

— Indian large mills received healthy orders for Wire rod exports to Nepal & about 3-4 rakes of wire rod deals learned at near to USD 460/MT CPT Raxaul/Jogbani border, Nepal.

— In the initial days of week, Jindal Steel has traded about 3,000 MT Sponge P-DRI (FeM 79+) at INR 16,300-16,400/MT ex-plant, Raigarh, Central India.

— Indian government owned company had concluded an export tender for 18,900 MT prime mild steel non-alloy concast billets (150*150mm) whose due date was 16 Dec’19, at USD 422-425/MT FoB. The cargo will be shipped by mid Feb’20.

— SAIL has increased its pig iron offer by INR 500/MT (USD 7) from its Bhilai Steel Plant (BSP), Central India & the fresh offers for pig iron (mixed prime) are assessed at INR 24,600/MT EXW-Bhilai – sources.

— SAIL’s Rourkela Steel Plant tender held today (18th Dec’19) to sell about 2,500 MT steel grade pig iron; had received good response as total allotted quantity have been sold out on increase bid price by INR 750-900/MT to INR 24,250-24,400/MT ex-plant.

FINISH LONG

Indian Finish long steel market notified with improved trade volume across the region and buying inquiries have been increased along with material lifting through the trade associates.

Further, Industrialists are anticipating that price range to get sustain in coming days amid sufficient bookings in hand and as per weekly comparison, rebar prices amplified by INR 1,000-2,000/MT (USD 14-28).

— Current trade reference rebar prices (12-25mm) through midsized mills assessed at INR 30,800-31,100/MT Ex Raipur (central region) & INR 33,100-33,400/MT Ex-Jalna (western region), INR 33,500-33,900/MT Ex Chennai (south region).

— Central region, Raipur based heavy structure manufacturers have maintained their trade discount of INR 1,100-1,400/MT and current trade reference prices at INR 35,100-35,500/MT (200 Angle) ex-work.

— Trade discounts in Raipur wire rod is currently at INR 800-1,000/MT and trade reference prices stood at INR 31,600-31,800/MT ex-Raipur and INR 31,400-31,800/MT ex-Durgapur, size 5.5mm.

— Central region based one of the large scale mills offered wire rod 5.5 mm at INR 32,700-33,000/MT Ex-Bhilai, shared by trade sources.

FINISH FLAT

This week domestic HRC prices exhibited a mixed response. Prices witnessed increase by INR 500/MT in northern and southern regions, however in western and eastern regions of India prices remained range-bound.

Current trade reference price for HRC (2.5-8 mm, IS2062) continues to hover at INR 35,500-36,000/MT ex-Mumbai, INR 35,500-36,500/MT ex-Delhi. And the domestic CRC (0.9 mm, IS 513) trade reference prices on a weekly premise assessed at INR 40,500-41,000/MT ex-Mumbai, INR 40,250-42,000/MT ex-Delhi. Prices mentioned above are basic, and extra GST@ 18% will be applicable.

Domestic HRC prices have shown uptick by INR 500/MT owing to supply constraints from few major mills amid maintenance shut down and export orders booked previously. Also, domestic HRC prices may witness further increase in Jan’20 following uptrend in global prices.

Reference Prices as on 21st December 2019 (Week 51)

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

Indian Export Reference Prices as on 21st Dec’19

Prices in USD/MT
Source: SteelMint Research