Indian semi-finished & finished long steel market observed moderate demand. Inquiries were limited during the 1st half of week-35, however, demand improved later due to which prices moved up by INR 200-800/t, w-o-w.
Finished flat steel prices in the trade segment declined by INR 250-750/t w-o-w basis due to prevailing monsoon season resulting in dull demand and higher inventories with stockists. Indian mills are likely to increase finished steel prices for Sep’20, SteelMint learned from its trade channels.
Iron Ore & Pellets
- SteelMint’s Odisha iron ore index Iron ore fines (Fe 63%) prices stand at INR 2,900-3,000/t and 5-18 mm (Fe 63%) around INR 5,500-5,600/t (ex-mines, included royalty, DMF and NMET) for this week.
- SAIL conducted an e-auction today for 200,000 t iron ore fines (Fe 62.5%) from its Bolani mines, Odisha and received a good response with the entire quantity getting booked at INR 2,200/t, SteelMint learned from its sources.
- SteelMint domestic pellet index “PELLEX” increased by INR 300/t on Friday (28st Aug’20) to INR 8,100/t DAP, Raipur in recent trades, and the hike in the sponge and other semi-finish steel prices. Other regions like Durgapur pellet indicative prices also down to INR 7,500-7,600/t exw, however, few major players of pellet were not offering at the end of this week. Southern India Bellary offer was also down this week to INR 7,700-7,900/t.
- SteelMint’s pellet index (FoB east coast India) decreased by $4.5/t w-o-w to $110.5/t this week due to a decline in Chinese bids and high inventory at Chinese ports. One deal was concluded around $124-125/t CFR with an FoB equivalent of $111-112/t for Sept loading.
Coal
- The Indian market observed an increase in enquiries for spot cargoes of seaborne coking coal, although there has not been any significant improvement in steel product sales.
- Latest offers for the Premium HCC grade are assessed at around $108.25/t FOB Australia, $117.75/t CNF China and $122.35/t CNF India.
Ferrous Scrap
- Imported scrap offers to India have inched up towards end of the week following hike in Turkey scrap prices. Shredded scrap offers in containers now stand at $310-315/t, CFR Nhava Sheva.
- However, not much trades were reported due to bearish market sentiments in finished long steel segment amid prevailing monsoon season. Limited trades were observed throughout the week. SteelMint’s assessment for shredded 211 scrap from UK/Europe in containers stands at around $313/t CFR Nhava Sheva, unchanged w-o-w.
- Few HMS trades were also reported from Dubai at $292-295/t CFR Mundra level earlier this week. Dubai origin HMS 1 (no gi ci) is being sold at around $300/t CFR level, whereas South African HMS 1 currently being offered in the range of $300-305/t CFR.
Ferro Alloys
- Indian silico manganese prices stabilized on moderate demand. The transnational price of silico manganese was at around INR 62,000/t exw Raipur this week.
- Ferro Manganese prices remained stable amidst moderate demand. Production remained on the lower side.
- Ferro Chrome prices escalated amidst severe chrome ore shortage. Ferro chrome prices are at around INR 66,000/t exw Odisha.
- Bhutanese producers have increased the offer levels to INR 82,000/t exw Bhutan and the prices from Guwahati came down to INR 88,000/t. However, Bhutanese producers are only catering to prevailing orders.
Semi Finished
On a weekly basis, Indian semi finished steel market observed a surge in price range by INR 100-650/t, except in the southern region, where sponge prices fell by INR 500-700/t, however billet prices were more or less firm.
Further sources believed that semi finished prices should remain supported in the coming week on account of expected price rise by primary mills for finished steel along tight availability of base raw materials.
- SAIL pig iron auction of 1,700t on 24th Aug from Rourkela Steel Plant (RSP) has received good response as the entire quantity booked in the range of INR 28,200-28,800/t exw.
- SAIL has scheduled an auction for around 4,000 t prime steel grade pig iron on 04 Sep’20 from its Bhilai Steel Plant (BSP) in Chhattisgarh.
- Vizag has floated a 30,000 t (150*150 mm, 3SP/4SP) bloom export tender for mid-Oct’20 shipments. The due date of the tender is 02 Sep’20.
- Induction grade billet export offers stood at around $403-405/t exw Durgapur, equivalent to $430-432/t CPT Nepal, via road delivery.
- Indian sponge iron (80 FeM, 100% lumps) export deals reported at around $300/t CPT Benapole, during the mid of week, however with rebound in domestic prices, export offers being raised to $305/t CPT, equivalent to $325-328/t CFR Chittagong, Bangladesh.
- Pig iron prices fell further this week by INR 700-1,500/t due to less demand & improved supply through the private mills in eastern India along with lessened price gap between billets & pig iron.
Finish Long
India’s finish long steel market of mid sized mills observed limited demand and slow trade activity in this week, and by considering various factors like existing stock level in mills, raw material prices, ongoing monsoon, manufacturers have fluctuated the rebar prices by INR 100-600/t in most of the regions.
- Trade reference rebar prices (12-25 mm) through midsized mills assessed at INR 31,800-32,200/t exw Raipur, INR 33,500-33,900/t exw Jalna.
- Trade discount given by Raipur based heavy structure manufacturers is at INR 700-1,000/t and the trade price of 200 Angle is at INR 35,700-36,100/t exw.
- Trade discounts in Raipur wire rod are currently at INR 800-1,000/t and trade reference prices stood at INR 32,200-32,500/t exw Raipur and INR 32,800-33,300/t, exw Durgapur, size 5.5 mm.
Finished Flat
This week Indian HRC trade prices fell by INR 250-750/t w-o-w basis due to prevailing monsoon season resulting in moderate demand in the domestic market. Last week Indian HRC prices recorded almost one year high in Aug’20 since mills announced three consecutive hikes this month on limited supply and restocking demand in the domestic market.
SteelMint’s assessments of HRC and CRC prices –
- HRC (IS 2062, 2.5-8 mm) price stands at INR 39,750-40,500/t exw Mumbai, INR 40,500-41,000/t exw Delhi while INR 40,000-40,750/t exw Chennai.
- CRC (0.9 mm IS513 GR) prices witnessed an increase in few regions since mills did not utilize their downstream activities resulting in tight supply. Current price assessment stands at INR 45,500-46,250/t exw Mumbai, INR 46,000-46,500/t exw Delhi and INR 45,500-46,500/t exw Chennai.
The prices mentioned above do not include 18% GST.
Meanwhile, major Indian steel mills are planning to announce another price hike by around INR 1,000-1,500/t at the beginning of Sep’20 considering upside in global prices and tight supply.
Reference Prices as on 29th Aug’20 (Week 35)
Prices are Exw & exclusive of GST
Indian export reference prices as on 29th Aug’20
Prices in USD/MT
Source: SteelMint Research
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