Indian steel prices declined during the week-3 (11-18th Jan’20) on account of poor lifting and lessened inquiries. As per mid sized mills, demand was less than the average, thus the prices dropped to get better response.
As per assessment, during the week prices of Semis & Finished long steel products fell near to INR 100-700/MT (upto USD 10) through the mid sized mills.
However, the Flat steel prices surged by INR 1,000-1,500/MT on account of active demand from Indian domestic & global buyers, following hike in global prices.
IRON ORE and PELLETS
Odisha miners kept the prices unchanged but trades are low at increased offers.
— Supreme Court allowed MESCO to sell 2.35 MnT iron ore inventory lying at mines head through OMC. Supreme Court also allowed Sarda mines to resume iron ore production on payment of their dues in one month. The company has an EC limit of 4 MnT.
— NMDC (CG) DR-CLO offered was booked witnessing a hike of INR 400/MT above the set base price this week on 14th Jan. As per sources, the DR CLO lots received the highest bids at INR 3,675/MT against the set base price of INR 3,275/MT.
— PELLEX inched down by INR 50/MT to INR 7,500/wmt (DAP Raipur). Major Raipur based pellet makers kept the offers stable at INR 7,400/MTex-plant; normalizing for freight to Raipur at INR 7,550/MT (DAP Raipur). Trade sources reported that one offer was heard around INR 7,100/MT (Ex-plant). Jamshedpur based pellet makers sold around 5,000 MT pellets for Fe 63% grade at INR 6,500/MT (EXW) in the last couple of days.
— Two export deal heard this week by the Odisha based pellet makers. SteelMint assessment for standard grade pellets (Fe 64%, 3% Al) has stand at USD 119-120/MT, CFR China.
COAL
Australian premium low-volatile hard coking coal prices have remained unchanged in the Asian metallurgical coal spot market, after the bullish run in the past two weeks. Buying activities have muted down ahead of the Lunar New Year holiday break in China, with several market participants gradually withdrawing from the market.
Meanwhile, however, higher firm bids have been emerging in the Asian metallurgical coal markets outside of China since last week, but failed to draw offers, as producers had firmer price expectations on their PLV cargoes.Prices are anticipated to hold steady for the Q1 January-March in anticipation of a stronger domestic metallurgical coke market post the Spring Festival in China.
— Latest offers for the Premium HCC grade are assessed at around USD 152.50/MT FOB Australia, USD 163.00/MT CNF China and USD 166.30/MT CNF India
FERROUS SCRAP
Imported scrap offers to India have dropped significantly in the last few days, post a deep-sea cargo booking by a Turkish steelmaker was confirmed on Thursday. However, the buyers are in a wait and watch mode till further clarity on the fresh offers with no major bookings happening at the moment.
— SteelMint’s assessment for containerized Shredded from the USA and UK to India stands at USD 305-308/MT, CFR Nhava Sheva, plunging by USD 12-15/MT against last week.
— HMS 1 (no ci gi) super from UAE is USD 300-302/MT CFR Nhava Sheva. HMS 1 (hand loaded) from South Africa is reported in the range of USD 302-305/MT CFR.
— West African HMS too witnessed a sharp fall since yesterday, with few trades being reportedly concluded at USD 294-295/MT CFR Goa, against USD 298-299/MT CFR earlier in the week. Earlier in the week, higher quality HMS 1 (hand loaded) from Central American (Honduras) origin was reported at around USD 300/MT CFR.
FERRO ALLOY
— Silico Manganese prices remained stable in Durgapur and increased in Raipur amid supply shortage. Demand remains good in the market.
— Ferro Manganese prices increased as most of the Ferro Manganese producers shifted to Silico Manganese creating a shortage of Ferro Manganese in the market.
— Prices for Ferro Chrome increased by INR 2000/MT amid limited supply. Most of the producers have reduced their production of Ferro Chrome and a few producers have also shifted to Manganese alloys production due to a long downtrend Ferro Chrome market and the recent hike in the Silico Manganese prices.
— Ferro Silicon prices increased significantly amid a shortage of material in Bhutan. Bhutanese producers are out of stock and the raw material shortage is also driving up the prices in Bhutan and Guwahati.
SEMI FINISHED
Indian Semis trade slow-down this week as prices slump by INR 200-700/MT amid lessened inquiries of finished products in major markets. The billet prices sharply fall in west & central India by INR 500-700/MT.Inline with plunge in billet prices, Sponge manufacturers being pressurized and reduced their offers by INR 300-500/MT, W-o-W.
— In the beginning of week days, Nepal based steel mills have booked about 5,000 MT 80 FeM Sponge C-DRI (70:30 mix material) iron from eastern India at around USD 282-285/MT (loaded to rake). This attracts freight cost of about USD 25/MT CPT Nepal, Raxaul border.
— Buying inquiries from Bangladeshi major mills remain low for Indian sponge iron and the offers stood at around USD 310/MT CPT Benapole, equivalent to USD 325/MT CFR Chittagong, Bangladesh.
— Vizag Steel concludes 30,000 MT Bloom (150*150 mm, C-0.17-0.23%, Mn- 0.6-1%, Si- 0.1-0.35%, P-0.05% max and S- 0.05% max.) ocean export tender at USD 420-425/MT, FoB India. The tender was due on 10 Jan’20).
— A government of India company had floated bloom export tender for 18,900 MT (150*150 mm) for which shipment scheduled by mid Mar’20. As per sources, the tender received bids around USD 420/MT, FoB India however it could not be confirmed till the time of publishing this report.
— Indian mid scale mills export offers (via road delivery) to Nepal stands at USD 445-450/MT for Billet & USD 505-510/MT for Wire rod, CPT Nepal.
— Jindal Steel has reduced steel grade pig iron price to INR 29,500/MT ex-plant, Raigarh, Central India.
— Steel grade Pig iron prices by eastern India based private mills have reduced by INR 300-500/MT this week on account of improved supply and drop in billet prices. The offer stood at around INR 27,700-28,000/MT as against INR 28,200-28,500/MT last week; ex-Durgapur.
FINISH LONG
Finish long steel market in India notified limited trades across regions over festive week and transaction performance remained poor with uncertain market direction, as stated by trade associates.
Limited trade activities contracted rebar price range up to INR 900/MT upon region wise and market participants mentioned that, buying inquiries remain limited despite healthy trade discounts or marginal increase in discount range for specific locations.
— The trade reference rebar prices (12-25 mm) through midsized mills assessed at INR 33,500-33,800/MT ex-Raipur & INR 36,100-36,500/MT ex-Jalna.
— Central region, Raipur based heavy structure manufacturers have maintained trade discount at INR 1,000-1,500/MT and current trade reference prices stood at INR 37,000-37,400/MT (200 Angle) ex-work.
— Trade discounts in Raipur wire rod is currently at INR 1,200-1,400/MT through the traders and trade reference prices stood at INR 33,300-33,600/MT ex-Raipur and INR 34,400-34,500/MT ex-Durgapur, size 5.5 mm.
— State owned Large mills have maintained their offers during the week and few private large mills have increased rebar price range by INR 500-750/MT across region amid strengthening medium scale mills price range along with narrowing price gap.
— Current trade reference rebar prices (12 mm) through the large scale mills assessed at INR 38,500-39,200/MT Ex-Mumbai (western region) & Wire rod 5.5 mm (1008 Grade) stands around INR 37,500/MT Ex-plant (central region – BSP SAIL).
FINISH FLAT
This week, the domestic HRC and CRC prices increased in the tune of INR 1,000-1,500/MT, supported by improved trades and active inquiries. However, supply constraints continue to persist.
Current trade reference prices for HRC stands at INR 39,000-40,000/MT ex-Mumbai, INR 38,500-39,000/MT ex-Delhi, and INR 39,500-40,500/MT ex-Chennai. And the trade reference CRC (0.9 mm, IS 513) prices on a weekly premise assessed at INR 45,000-45,500/MT ex-Mumbai, INR 42,500-44,000/MT ex-Delhi, and INR 45,250-45,500/MT ex-Chennai. Prices mentioned above are basic, and extra GST@ 18% will be applicable.
Also, the market participants anticipate a further uptrend in the domestic prices amid bullish sentiments.
Reference Prices as on 18th January 2020 (Week 3)
| Products | Regions | Taxes | Prices in INR/MT | W-o-W |
| Pellet Fe 63%, 6-20 mm | Ex-Durgapur | GST at 5% Extra | 7,000 | -50 |
| Iron ore 6-40 mm, Fe 65% | Chhattisgarh | Excluding Royalty, DMF & NMET. GST @ 5% extra | 2,800 | 0 |
| 5-18mm, Fe 63% | Odisha | Ex-mines, Incld Royalty, DMF & NMET, GST extra | 4,650 | 0 |
| Fines Fe 63% | Odisha | Ex-mines, Incld Royalty, DMF & NMET, GST extra | 2,550 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 165 | +11 |
| Silico Manganese (60-14) | Ex-Raipur | Excluding GST | 68,000 | +1,250 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 23,100 | +100 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 20,500 | -500 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 19,500 | -500 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 30,000 | -200 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 29,800 | -500 |
| Rebar (12-25mm) | Ex-Raipur (Medium Scale) | GST at 18% Extra | 33,600 | -600 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 33,600 | -1,000 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 37,500 | 0 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 39,500 | +2,130 |
| CRC (0.90mm) | Ex-Mumbai | GST at 18% Extra | 45,250 | +1,500 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 38,500 | +1,380 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices as on 18th Jan’20
| Commodity | Particular/Delivery | Size and Grade | Prices | 1W | 1M |
| Pellet | FOB India | 6-20 mm, Fe 64% | 110 | 105 | 104 |
| Scrap | CNF India | HMS-1&2, Dubai | 295 | 305 | 277 |
| Billet | FOB India | 150*150, IS 2830 | 420 | 423 | 416 |
| Sponge Iron | CNF Bangladesh | Lumps, FeM 80, India | 325 | 325 | 295 |
| Pig Iron | FOB India | Steel Grade | 345 | 350 | NA |
| HRC | FOB India | 2.5-8mm, IS 2062 | 525 | 525 | 473 |
Prices in USD/MT
Source: SteelMint Research
Leave a Reply