SteelMint | Morning Brief

Iron ore & pellets-

• SteelMint’s bi-weekly domestic pellet index “PELLEX ” moved up by INR 100/t to INR 15,100/t DAP Raipur as seen in recently concluded deals. Four deals with total quantity of 20,000 t pellet were reported in this publishing window at INR 14,350-14,800/t DAP, Raipur.
• China recorded imports of iron ore at 98.57 mn t in Apr ’21 against 102.11 mn t in Mar ’21, according to the General Administration of Customs. Imports dropped by 4% m-o-m due to the hindrances from major miners due to disruptions in weather and rising prices.
• The current assessment for imported lump (Fe 64%) stands at around $245/t, CNF Kandla. The global iron ore fines (Fe 62%) fines index increased to $203/t, CNF China on 07 May in line with the sharp hike in iron ore futures amid robust steel market outlook and iron ore supply disturbance from a few key supplying countries.

Coal-

• South African RB2 (5500 NAR) grade coal portside offers rose sharply to reach INR 7,400/t ex-Gangavaram due to rise in API4 index, even as reopening of rail line connecting Mpumalanga mines to RBCT port remained uncertain. Bids at this rate were limited and hardly any trades were heard.
• The FOB prices for Australian hard coking coal continued to edge higher based on latest transactions reported for various grades that concluded at higher prices. Latest prices for the Premium HCC and the 64 Mid Vol HCC grades are assessed to be at around $109.00/t (+2.3% w-o-w) and $103.75/t (+1.5% w-o-w) FOB Hay Point, Australia.

Scrap & metallics-

• SAIL conducted an auction for 1,700 t of basic grade pig iron today from its Durgapur Steel Plant, West Bengal. Buyers booked the entire quantity at a weighted average price of INR 37,250/t exw, sources reported to SteelMint. Bids decreased by INR 350/t as compared to the previous auction conducted on 28 Apr, which was concluded at INR 37,600/t exw.
• SteelMint’s benchmark sponge iron (P-DRI) prices remained unchanged yesterday at INR 29,000/t ($394), exw Raipur, Central India. Competitive offers from outside plants and relatively stable supplies appear to be the key factors behind stability in prices.
• Imported scrap offers to India rose by $20/t, however trades remained subdued. Containerized shredded offers have increased and currently stand at $485-490/t CFR Nhava Sheva basis.
• SteelMint’s domestic steel scrap index has increased to INR 39,000/t DAP Mandi Gobindgarh. Supply tightness of melting scrap and oxygen supply constraints limited the steel production and strengthening semi-finished steel movement led to slight improvement today.
• Japanese scrap suppliers have raised HRS 101 grade export offers to China by upto $10/t w-o-w and now it is being offered at $535/t CFR China basis, SteelMint learned from sources. However, last week deals had been concluded at around $515/t CFR China. Traders highlighted that limited trades were getting concluded this week primarily due to Golden Week and Labour Day holidays.
• Shagang Steel raised scrap purchase prices by RMB 100/t ($15) for all grades for the second consecutive day. Price indication for HMS (6-10 mm) now stands at RMB 3,720 ($576), inclusive of 13% VAT, delivered to headquarters.

Semi-finished steel-

• SE Asian imported billet market remained silent due to the high spread seen between bids and offers amid increased global billet prices. The imported billet offers in the regions have touched $700/t CFR levels. On the other hand, the bids were seen to be hovering between $680-690/t CFR.
• SteelMint billet index rose by INR 400/t to INR 42,000/t exw Raipur on 07 May’21. A total of about 4,200 t billet trades were recorded against 2,300 t the previous day. The index rebounded on improved trades following optimistic trends globally.
• Chinese steel imports fell by 11% m-o-m 1.17 mn t in Apr ’21 against 1.32 mn t in Mar ’21. This was attributed to reasonable domestic prices against imported prices during Feb-Mar ’21 which impacted shipments in Apr.

Finished steel-

• SteelMint’s benchmark assessment for HR-plates(base grade IS 2062, E 350) currently stands at INR 65,500-66,000/t(exy-Mumbai), up by INR 1,000-1,500/t($14-20) from last week, when the prices were at INR 64,000-64,500/t(exy-Mumbai) levels. These prices are exclusive of GST @ 18%.
•  A prominent Indian steel manufacturer is reported to have booked about 20,000 t HRC re-rolling grade for exports to Vietnam. The deal is concluded at a $995/t CFR basis for June delivery, SteelMint learned from its credible sources. However, fresh offers are now heard around $1,010-1,020/t CFR.
• ArcelorMittal, Europe’s largest steel manufacturer increased its HRC list price to Euro 1,050/t, up by Euro 30/t w-o-w over lower inventories with end-users, supply constraints and long lead times.
• China’s export volumes went up by 6% m-o-m to 7.97 mn t in Apr ’21 against 7.50 mn t in Mar ’21. It jumped by 26% y-o-y against 6.31 mn t in the same period last year , as per the data released by the General Administration of Customs, China. Country’s export volumes reported an increase m-o-m, since traders have liquidated their inventories as they don’t want to bear losses and enter into negotiations with customers due to changes in export rebate tax.