Indian spot steel trades remained subdued during the week-27. The mid sized steel mills reported mixed response from the domestic buyers over uncertainty in the market.
As per assessment made by SteelMint, this week prices of billet have declined by INR 100-700/t (upto $10) & Sponge iron fluctuated by INR 100-500/t. In context to finished steel, the secondary long steel market registered a price fall of INR 500-1,400/t.
However, finished flat steel prices increased by INR 500-750/t through the major Indian steel manufacturers, for July deliveries.
IRON ORE & PELLETS
Major Odisha based merchant miner has increased its iron ore lumps offer by INR 300/t to INR 3,800-3,900/t Ex-mines. Badampahar iron ore block auction won by GM Iron steel this week. NMDC C.G hikes iron ore offer by INR 200-240/t at the beginning of this week amid tight supply.
— PELLEX stable at INR 5,900/wmt (DAP Raipur) this week amid recent deals from nearby locations. Around 40,000 t pellet deals have been done by Raipur and outside Raipur based pellet maker this week.
— Jamshedpur based pellet maker’s decreased offers to INR 5,200-5,300/t Ex-plant. Durgapur pellet price assessment falls to INR 5,500-5,800/t Ex-plant on limited inquiries.
— Indian PELLET maker concludes 55,000t pellet (less than 2% Al) export deal at around $102/t FoB for July shipments.
COAL
The Indian demand for steel-related products has been recovering slowly but there is much room for improvement until at least the end of October amid the ongoing coronavirus pandemic. Demand revival for spot inquiries of seaborne coking coal from India and other ex-China markets in the Asia Pacific region will likely take a while.
— Latest offers for the Premium HCC grade are assessed at around $116.00/t FoB Australia, $129.00/t CNF China and $127.80/t CNF India.
FERROUS SCRAP
Imported scrap offers to India are mostly firm this week with very few deals getting concluded. Dull finished steel demand was further impacted with monsoon slowdown affecting the demand.
— SteelMint’s assessment for shredded scrap from UK/Europe this week stood range-bound, between $275-284/t CFR Nhava Sheva. Earlier in the week, most offers stood around $275-280/t CFR, but by the end of the week, some uptrend was witnessed and offers moved to $280/t and above levels, CFR. Buyers’ price ideas stood significantly lower.
— A major steelmaker has booked a 3,500 t of busheling bundles earlier this week at $302/t CFR Nhava Sheva basis. Currently, the company bidding for 6,000-7,000 t of shredded scrap at $277-278/t CFR basis.
FERRO ALLOYS
— Silico manganese prices went up due to shortage of 60-14 grade as major players are either fulfilling the government orders or have shifted to producing export grade material.
— Ferro manganese prices fell due to dull demand with little or no trades being concluded.
— Prices of ferro chrome remained stable despite dull demand in the domestic market.
— Indian producers of ferro silicon have kept the prices firm in the domestic market despite dull demand and limited transactions.
— MOIL, the largest manganese ore producer in India, reduced prices by up to 15% with effect from 1 July for the July-Sept quarter.
SEMI FINISHED
Domestic billet offers plunged by INR 100-700/t ($ 1-9), while sponge iron prices fluctuated slightly by INR 100-400/t across regions. This week demand was comparatively lower against last week as manufacturers pressurized to cut offers to fetch orders. With falling prices, conversion spread (margins) of billet makers further moved down.
Sources believed that semis prices should not fall further due to limited margins, however dull finished steel demand remains a major concern in current circumstances.
— Indian sponge iron export offers firm this week with fresh deals of about 1,000-2,000t and current assessment is about $235-240/t CPT Benapole, equivalent to $260/t CFR Chittagong, Bangladesh.
— Pig iron prices slightly up by INR 100-300/t in central & eastern regions due to supply shortage & active demand on slight improved billet prices during the second half of this week.
— Jindal Steel reduces steel grade pig iron offers by INR 200-300/t w-o-w to INR 23,200-300/t ex-plant, Raigarh.
— Indian mid scale mills reported billet export deals during mid of this week at $350-352/t, while current offers hovering at $356-358/t ex-mill at Durgapur, equivalent to $385-390/t CPT Nepal, via road delivery.
— Bokaro, Jharkhand based a major mill has roll-over prices for July deliveries and reported wire rod (SAE 1008) & rebar at around INR 34,500/t, EXW.
— SAIL auction of 3,000t steel grade pig iron on 30th June from Bhilai Steel Plant (BSP) has received good response as the bids for entire quantity fetches in the range of INR 23,000-23,200/t EXW, as per participants.
— SAIL pig iron auction of 4,000t on 29th June from Rourkela Steel Plant (RSP) has received good response as the entire quantity booked in the range of INR 22,700-900/t ex-plant, as per participants.
— SAIL has floated an export tender of 30,000 t concast slab from its Bhilai Steel Plant for mid Aug shipment. The due date of the tender is 07 Jul’20.
— Tata Metaliks Ltd (TML) has rolled over pig iron prices for Jul’20 deliveries. Offers for foundry grade pig iron are assessed at INR 29,500/t & for low silicon (1-1.5%) at INR 26,000/t ex-plant, Kharagpur, eastern India.
FINISHED LONG
The finish long steel industry didn’t observe sufficient demand through mid sized mills where rebar (12-25 mm) price range were contracted by INR 500-1,400/t w-o-w comparison.
— Trade reference rebar prices (12-25 mm) through midsized mills assessed at INR 30,100-30,400/t Ex Raipur, INR 31,600-32,000/t Ex-Jalna.
— Trade discount by Raipur based heavy structure manufacturers is almost similar to previous week and maintained by INR 600-900/t and trade price of 200 Angle is at INR 34,000-34,400/t EXW.
— Trade discounts in Raipur wire rod are hovering at INR 1,000-1,200/t and trade reference prices stood at INR 29,800-30,400/t ex-Raipur and INR 30,700-31,000 /t, ex-Durgapur, size 5.5mm.
FINISHED FLAT
Major Indian steel manufacturers have announced an increase of around INR 500-750/t ($6-10) in HRC & CRC prices for Jul’20 deliveries, sources told SteelMint.
In trade segment, reference prices for HRC (IS 2062, 2.5 – 8 mm) are at INR 35,500-36,000/t (ex- Mumbai), INR 35,500-35,800/t (ex-Delhi), and INR 37,000-38,000/t (ex-Chennai). CRC (0.9 mm IS513 GR) prices were at INR 40,000-42,000/t (ex- Mumbai), INR 41,000-42,000/t (ex- Chennai) and INR 40,000- 41,000/t (ex-Delhi). All prices are basic and do not include an 18% GST.
Reference Prices as on 4th July 2020 (Week 27)
| Products | Regions | Taxes | Prices in INR/MT | W-o-W |
| Pellet Fe 63%, 6-20 mm | Ex-Durgapur | GST at 5% Extra | 5,650 | 0 |
| Iron ore 6-40 mm, Fe 65.5% | Chhattisgarh | Excluding Royalty (15%), DMF &(4.5%), NMET(2%) and GST (5%) | 2,450 | 200 |
| 5-18 mm, Fe 63%, DR Grade | Odisha Iron Ore Index | Inclusive of Royalty (15%), DMF (4.5%) & NMET (2%). GST @ 5% extra | 3,850 | 400 |
| 0-10 mm, Fe 63% | Odisha Iron Ore Index | Inclusive of Royalty (15%) , DMF (4.5%) & NMET (2%). GST @ 5% extra | 1,900 | 50 |
| Coking Coal, Premium HCC | CNF India | GST 5%, Imp Duty 2.5%, Social Welfare Chg 10% Ext | 128 | 2 |
| Silico Manganese (60-14) | Ex-Raipur | Excluding GST | 62,000 | 1,333 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 19,700 | -200 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 16,800 | 200 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 15,800 | 200 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 23,500 | 300 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 27,200 | -500 |
| Rebar (12-25mm) | Ex-Raipur (Medium Scale) | GST at 18% Extra | 30,200 | -1,100 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 30,400 | -600 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 33,700 | -800 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 35,750 | 0 |
| CRC (0.90mm) | Ex-Mumbai | GST at 18% Extra | 41,000 | 0 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 35,250 | 0 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices as on 4th Jul’20
| Commodity | Particular/Delivery | Size and Grade | Prices | 1W | 1M |
| Pellet | FOB India | 6-20 mm, Fe 64% | 98 | 100 | 104 |
| Scrap | CNF India | Shredded (Containers, Europe Origin), Europe | 280 | 283 | 287 |
| Billet | FOB India | 150*150, 3SP/4SP | 378 | 381 | 381 |
| Sponge Iron | CNF Bangladesh | Lumps, FeM 80, India | 260 | 258 | 270 |
| Pig Iron | FOB India | Steel Grade | 315 | 315 | 303 |
| HRC | FOB India | 2.5 mm, SAE1006 | 445 | 445 | 423 |
Prices in $/t
Source: SteelMint Research
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