During this week – 9 (24-29 Feb’20) Indian domestic trade activities remained subdued. The mid sized steel mills reported mixed response from the domestic buyers over uncertainty in the market. However primary mills have planned to hike finished steel prices for Mar’20.
As per SteelMint’s assessment, in these days the billet prices were more or less firm in central & eastern regions, while in remaining parts of the country it remained volatile by INR 300-900/MT. Although sponge iron prices declined by INR 100-400/MT.
In context to finished steel, the secondary long steel market registered price movement of INR 100-500/MT (USD 7) and flat steel prices in trade segment fell by INR 250-500/MT (USD 3-7).
IRON ORE and PELLETS
Odisha iron ore offers remains unchanged. SAIL (Steel Authority of India) has scheduled its next iron ore fines e-auction from Bolani and Barsua mines in 19th and 20th Mar’20 respectively. 100,000 MT fines will be put for auction from each mine.
— PELLEX remains stable at INR 6,700/wmt (DAP Raipur). Pellet makers from Raipur concluded around 10,000 MT pellet deal at INR 6,600-6,700/MT ex-plant this week. Raigarh based pellet makers increased pellet offers to INR 6,100-6,200/MT ex-plant.
— NMDC Donimalai pellet plant has resumed offering pellets after a gap of around five months. The company has quoted fresh offer Fe 64% pellets at INR 7,000/MT (FoT basis).
— Eastern India based pellet maker concluded a pellet (Fe 64% grade pellets with 3% Al) export deal at USD 120/MT, CFR China for March loading earlier this week. SteelMint Pellet export assessment for Fe 64% grade pellets with 3% Al at USD 119-120/MT, CFR China.
COAL
Seaborne coking coal prices in the Asian spot market moved higher this week, after the conclusion of a sell tender for an Australian premium low-volatile on Thursday.
Notwithstanding the despondent global steel market outlook coupled with softened domestic coke prices, an apparent dearth of Australian premium coking coal cargoes in the Chinese market has contributed to the higher spot prices. Trader sources in China anticipate the price of premium hard coking coal to continue rising in the short term. Nevertheless, prices for premium mid-volatile coking coal could drop if Chinese buyers deem considered them expensive.
— Latest offers for the Premium HCC grade are assessed at around USD 162.75/MT FOB Australia, USD 172.50/MT CNF China and USD 173.80/MT CNF India.
FERROUS SCRAP
Offers for Imported scrap to India moved up over the week, while buying activities in containers dipped down slightly in comparison to good trades in the previous week. Market anticipates price correction at global levels before mid next month.
— SteelMint’s assessment for Shredded 211 to India from USA and UK/Europe stands at USD 312-315/MT CFR Nhava Sheva, up USD 7-8/MT against last week. Later in the week, a deal of 1,500 MT of Shredded was reported at USD 313/MT CFR Nhava Sheva, while present offers from most global suppliers stand at around USD 313-317/MT CFR.
— Brazil origin HMS 1&2 (80:20) being sold in decent quantities at USD 292/MT CFR, while few trades of HMS 1&2 (80:20) from UK origin assessed at around USD 290-293/MT CFR. Australian HMS 1&2 (80:20) offers assessed at USD 290-295/MT CFR, witnessing buyer inquiries.
— UAE origin HMS 1&2 (with ci gi) was sold in some quantities, at around USD 295-300/MT CFR depending on quality, while HMS 1(no ci gi) material is being offered at up to USD 305/MT CFR. South African HMS 1 hand-loaded material’s offers have shot up to USD 308-310/MT range.
FERRO ALLOYS
— Silico Manganese prices fell amid an oversupply in both Raipur and Durgapur regions and overall weakness in Steel market.
— Ferro Manganese prices remained stable amid limited production and moderate demand in both domestic and export market.
— Prices of Ferro Chrome fell due to almost nil export. Smelters are waiting for the Chinese market to stabilize which was closed for quite long time now due to deadly corona virus.
— Indian Ferro Silicon prices remained stable amid short supply. Producers believe that the prices may increase in the coming weeks.
SEMI FINISHED
On weekly basis, Indian Semi finished (Billet) steel market observed volatility by INR 100-900/MT due to fluctuating demand, whereas Sponge iron offers declined by INR 100-400/MT W-o-W.
— Indian Sponge iron export prices to Bangladesh dropped further by USD 5/MT in recent deals of around 5,000 MT. The deal has concluded near to USD 282-283/MT CPT Benapole, equivalent to USD 295-300/MT CFR Chittagong.
— Indian billet export offers for induction grade (secondary mills) evaluated at USD 425-427/MT & by large scale mills (blast furnace grade) at around USD 445/MT CPT Nepal.
— RINL has invited an e-tender for the export of 40,000 MT Bloom and 20,000 MT Billets. Interested bidders can submit their bids till 14:00 hrs on 03 Mar’20.
— Punjipatra, Raigarh based steel manufacturers are facing problems of power cut by JPL. The plants are getting power supply of about 12 hrs (50%) per day.
— Jindal Steel has reduced steel grade pig iron offers by INR 200/MT W-o-W to INR 28,000/MT ex-plant, Raigarh, Central India.
— SAIL’s auction held on 26th Feb for 2,200 MT steel grade pig iron from its Rourkela steel plant, has received weak response. Only about 250 MT material have been sold on reduce base price by INR 300/MT to INR 27,500/MT EXW-Rourkela.
FINISH LONG
Indian Finish long steel market remained volatile due to regular price fluctuation in overall regions and dull buying inquiries urge trade associates to book limited quantity upon confirmed future bookings.
Market participants believe that trade volume will remain mild range and might get some selling pressure through medium and small scale mills in near term.
— Current trade reference rebar prices (12-25 mm) through mid-sized mills assessed at INR 33,000-33,200/MT ex-Raipur, INR 36,000-36,300/MT ex-Jalna & INR 35,000-35,200/MT ex-Chennai.
— Central region, Raipur based heavy structure manufacturers have maintained trade discount by INR 100-200/MT and trade reference price stands at INR 35,900-36,200/MT (200 Angle) ex-work.
— Trade discounts in Raipur wire rod is currently at INR 400-600/MT and trade reference prices hovering at INR 32,200-32,800/MT ex-Raipur and INR 32,300-32,800/MT ex-Durgapur, size 5.5 mm.
— Godawari Power and Ispat (GPIL) from Central India, informed that it has commenced commercial production in the Rolling Mill (4, 00,000 MT) and Iron Ore Benefication Plant (1, 00,000 MT) with effect from 25 Feb’20.
— About 5,500 MT (2 rakes) of wire rod export deals learned from Indian large scale mills at near to USD 525-530/MT CPT Raxaul border, Nepal.
FINISH FLAT
Indian HRC prices in the trade segment fell by around INR 250-500/MT W-o-W on slow off take in demand. Also, sluggish trades and weak consumer buying collectively pulled down prices in the domestic market.
Current trade reference prices for HRC (2.5-8 mm, IS2062) on a weekly premise stands at INR 38,000-38,750/MT ex-Mumbai, INR 38,250-38,500/MT ex-Delhi & INR 39,000-40,000/MT ex-Chennai. However, prices were stable in Delhi and Ludhiana markets.
The trade reference CRC (0.9 mm, IS 513) prices on a weekly premise assessed at INR 44,500-45,500/MT ex-Mumbai, INR 42,200- 45,000/MT ex-Delhi & INR 44,500-46,000/MT ex-Chennai. Prices mentioned above are basic and GST@ 18% will be applicable.
SteelMint in conversations with market participants learned that major Indian steel manufacturers are planning for another hike by around USD 500-750/MT for Mar’20. Sources claim that demand from OEM’s and projects has been decent however, there is selling pressure in the trade segment. Official price hike announcement is expected in the first week of Mar’20.
Reference Prices as on 29th February 2020 (Week 9)
| Products | Regions | Taxes | Prices in INR/MT | W-o-W |
| Pellet Fe 63%, 6-20 mm | Ex-Durgapur | GST at 5% Extra | 6,450 | +100 |
| Iron ore 6-40 mm, Fe 65% | Chhattisgarh | Excluding Royalty, DMF & NMET. GST @ 5% extra | 3,200 | 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 | 2,350 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 174 | +4 |
| Silico Manganese (60-14) | Ex-Raipur | Excluding GST | 61,250 | -1,250 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 23,700 | +200 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 19,300 | -400 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 18,400 | -350 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 28,000 | -200 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 29,250 | +50 |
| Rebar (12-25mm) | Ex-Raipur (Medium Scale) | GST at 18% Extra | 33,100 | 0 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 32,500 | 0 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 36,100 | +100 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 38,300 | -450 |
| CRC (0.90mm) | Ex-Mumbai | GST at 18% Extra | 45,000 | -250 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 37,800 | -500 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices as on 29th Feb’20
| Commodity | Particular/Delivery | Size and Grade | Prices | 1W | 1M |
| Pellet | FOB India | 6-20 mm, Fe 64% | 111 | 110 | 113 |
| Scrap | CNF India | HMS-1&2, Dubai | 298 | 290 | 275 |
| Billet | FOB India | 150*150, IS 2830 | 400 | 397 | 418 |
| Sponge Iron | CNF Bangladesh | Lumps, FeM 80, India | 298 | 303 | 313 |
| Pig Iron | FOB India | Steel Grade | 330 | 345 | 340 |
| HRC | FOB India | 2.5-8mm, IS 2062 | 498 | 503 | 538 |
Prices in USD/MT
Source: SteelMint Research
Leave a Reply