Spot steel trades in India’s secondary market remained supportive during week 52 & the prices rallied further on strengthening steel prices globally.
According to SteelMint’s assessment, sponge prices marginally fluctuated by INR 100-400/t due to improved supply, while billet prices rallied by INR 300-900/t on account of strong demand, supported by further surge in prices by primary mills. Also, the secondary rebar market has observed a surge in price range by INR 300-800/t in major locations except in western & southern India, where prices moved up sharply by INR 1,000-2,000/t due to strengthening scrap & billet prices along with active demand.
In context to finished flat steel, producers announced the fourth consecutive hike this month by around INR 1,500-2,500/t ($20-34).
Iron Ore and Pellets
- SAIL conducted two auctions during the week from its Meghahatuburu mines in Jharkhand. In the first auction for 200,000 t iron ore fines (Fe 62%), the miner received bids for 128,000 t ore at the base price of INR 4,500/t (loaded into rakes and excluding royalty & other taxes). In another auction of 120,000 t , material offered was of grades Fe 57.8%, Fe 58.7% and Fe 59.1% with a lot of 40,000 t each. According to sources report to SteelMint, the miner received bids for 56,000 t at around INR 1,710-2,000/t (loaded into rakes and excluding royalty).
- NMDC is going to conduct two iron ore auctions for around 100,800 t from its Bacheli mines and 25,200 t from its Kirandul mines, Chhattisgarh. Both the auctions are scheduled on 30th Dec ’20.
- Raipur based pellet makers have reduced offers by around INR 200-500/t ($3-7), revised offers for Fe 63 (+/-0.5)% pellets stands at INR 12,000-12,300/t exw Raipur. Notably, there were no firm deals reported at increased offers of INR 12,500/t, which may have resulted in the lowering of offers. Western India pellet maker hike pellet offer to INR 14,000/t (Del Kandla) this week.
- SteelMint’s pellet export index (FOB east coast India) increased to $177/t, up by $7/t w-o-w.
Coal
- The FoB price for Australian premium low-volatile (PLV) hard coking coal (HCC) remained range bound this week amid moderate year-end demand.
- Meanwhile, the CNF China price for Australian PLV HCC hit an 18-month high – breaching the $200/t level – as limited spot availability of non-Australian materials despite increased winter restocking needs supported prices. The spot market continued to witness transactions concluded at higher price levels to Chinese end-users.
- Market participants expect China-delivered premium coking coal prices to continue rising on supply tightness; while the Indian market is not expected to see significant spot purchases until at least late January.
- Latest offers for the Premium HCC grade are assessed at around $101.50/t FOB Australia, $201.00/t CNF China and $113.60/t CNF India.
Ferrous Scrap
- Imported scrap prices to India have kept themselves away from the global price uptrend, as continuing to worsen the market situation. Though, limited offers to India have been reported this week, due to ongoing year-end holidays kept suppliers in a relaxed mood. However, limited scrap availability and container shortage have continued to keep the price high, SteelMint learnt.
- Indian buyers keenly waiting for China’s scrap imports resumption as it would give a perfect storm to the imported scrap market as the newly set scrap import standards have been announced, which will be implemented from Jan’ 21. SteelMint’s assessment for Shredded scrap in containers of UK/EU origin stands at $460/t CFR Nhava Sheva, moving up significantly by $22/t w-o-w.
Ferro Alloys
- Indian silico manganese prices increased by INR 3,000/t on support from improving steel prices and shortage of silico manganese in the spot market. Meanwhile, the producers increased export prices in line with better domestic demand.
- Ferro manganese prices increased by upto INR 3,500/t due to increasing demand amid bullish market sentiments.
- Ferro chrome prices increased by INR 4,000/t after continuous decline owing to supply shortages. Since most of the producers were low on the chrome ore inventory, the production levels of ferro chrome decreased and the supplies were adversely affected.
- Indian ferro silicon prices increased by INR 5,000/t in Guwahati on severe supply shortages as dispatches from Bhutan is disrupted due to a nationwide lockdown and as producers from Meghalaya are taking advantage of the situation.
Semi Finished
- Induction grade billet export offers surged by $20/t to around $525/t exw Durgapur, equivalent to $550/t CPT Nepal. This week, Odisha based plants received healthy orders from Nepal mills, via rake delivery.
- Sponge iron export prices have increased this week by $15/t. Fresh deals of around 8,000 t have been recorded at $400-405/t CPT Benapole (equivalent to $415-420/t CFR Chittagong, Bangladesh).
- Steel grade pig iron prices increased by INR 300-900/t due to active demand along with strengthening scrap & billet prices globally.
- Vizag Steel is going to conduct an e-auction for about 3,000 t basic grade pig iron & the auction is scheduled on 29 Dec ’20.
- Electrosteel Steels, Bokaro (Jharkhand), eastern India, has concluded a tender for 1,500 steel grade pig iron at around INR 34,300-34,500/t exw.
- SAIL’s pig iron auction for 1,000 basic grade, conducted on 24 Dec ’20 from Durgapur Steel Plant (DSP) was booked at INR 34,300 /t exw.
- SAIL is going to conduct an auction on 30 Dec ’20 for 8,650 t prime steel grade pig iron from its Bhilai Steel Plant, Chhattisgarh.
- Vedanta Resources, one of the major Indian pig iron producers has concluded a tender for a rake of foundry grade pig iron at around INR 38,000/t exw, (equivalent to INR 41,400-500/t FoR Delhi).
Finished Long
India’s finish long steel market of mid-sized mills, observed positive trends in this week and rebar prices have increased by INR 300-800/t, also a sharp surge in prices observed in western and southern regions by INR 1,000-2,000/t owing to strengthening in raw material prices along with active demand.
- Trade reference rebar prices of 10-25 mm through midsized mills assessed at INR 42,700-42,900/t exw Raipur, INR 47,000-47,300/t exw Jalna.
- Trade discount given by Raipur based heavy structure manufacturers stood at INR 700-1,000/t and the trade price of 200 Angle is at INR 45,500-45,900/t exw.
- Trade discounts in Raipur wire rod are currently at INR 500-700/t and trade reference prices stood at INR 43,800-44,100/t exw Raipur, INR 44,200-44,400 exw Durgapur, size 5.5 mm.
Finished Flat
Indian steel producers announced the fourth consecutive hike this month by around INR 1,500-2,500/t ($20-34). Price rally in the international market coupled with robust demand from consumer durables and auto segments contributed to the continuous increase in steel prices.
- HRC (IS2062 2.5-8 mm) stood at INR 54,000-55,000/t exy Mumbai, INR 54,500- 55,500/t (exy-Delhi), and INR 54,000-56,000/t exy Chennai.
- CRC (0.9 mm GR) is around INR 62,000-64,000/t exy Mumbai, INR 62,000- 65,000/t exy Delhi, and INR 65,500-67,000/t exy Chennai.
Reference Prices as on 26 Dec’20 (Week 52)
Prices are exw & exclusive of GST
Indian export reference prices as on 26 Dec’20
Prices in $/t
Source: SteelMint Research
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