The performance of Indian steel industry in the second quarter of FY17 against the previous quarter of Q1 FY17 can be rated as moderate with overall fall in raw material, semis, and finished steel prices.
With the restrictions on flat steel imports in India after the MIP announcement in the month of Feb’16, the prices of flat steel products improved significantly in the first quarter of FY17 (Apr to Jun) against its previous quarter of Q4 FY17 (Jan-Mar’16) which was one of the worst quarters for Indian steel industry .
However, in Q2 FY17, the impact of MIP was reduced against what it was in Q1 FY17 when MIP was introduced resulting which finish flat products prices registered a fall in Q2FY17 against Q1FY17.
In the case of raw materials, semis and long products also, prices have registered a fall on the Q-O-Q basis.
We at SteelMint have analyzed and compared the Indian steel industry performance in Q4 FY16 and Q1 FY 17.
Prices:
In Q2 FY17, domestic prices of iron ore have registered an average fall of 5%. Whereas, met coke prices have registered the highest increase of 23% and pellet prices have increased by 2% Q-o-Q basis.Scrap domestic and global prices have also registered a fall in Q2 FY17 against the previous quarter.
Semis and rebar domestic prices have registered a fall of 6%. While in a case of flat products CRC and HR plates prices and India’s export HRC prices have registered a fall Q-o-Q basis.
Production:
India’s crude steel production have registered an increase of 2% at 24.28 MnT in Q2 FY17 against Q1 FY17.
Export/Import:
In terms of imports, only iron ore imports have increased by 23% in Q2 FY17 against the previous quarter. Whereas imports of both long steel (wire rod) and finish flat products have registered a fall on account of trade restrictions like MIP and anti-dumping duty.
In terms of export, except iron ore, India’s pig iron, flat and long products have registered an increase in Q2 FY17 against previous quarter given the good sales from export sales owing to rise in global prices during the period.
| Commodity | Delivery | Size/Grade | Unit Prices | Q2 FY17 | Q1 FY17 | % Change | Q2 FY16 | % Change | Remark |
| Iron Ore | NMDC (Chhattisgarh) | Lumps, 6-40mm, Fe 65% | INR/MT | 1,700 | 1,900 | -11.% | 2,916 | -42% | Excluding Royalty |
| Iron Ore | NMDC (Chhattisgarh) | Fines, -10mm, Fe 64% | INR/MT | 1,460 | 1,630 | -10% | 1,660 | -12% | Excluding Royalty |
| Iron Ore | Odisha | Fines, Fe 63% | INR/MT | 1,100 | 1,160 | -5% | 1,560 | -29% | Ex-mines,Including Royalty |
| Iron Ore | Odisha,Sponge grade Lump | 5-18 mm, Fe 63% | INR/MT | 2,050 | 2,100 | -2% | 3,550 | -42% | Ex-mines,Including Royalty |
| Iron Ore | Karnataka, Fines | Fe 58% | INR/MT | 1,421 | 1,275 | 11% | 1,075 | 32% | Weighted average bid price, Basic |
| Pellets | Ex- Barbil | 6-20mm,63% | INR/MT | 3,055 | 3,000 | 2% | 4,420 | -31% | Basic Prices, Loaded to Wagons |
| Scrap | Ex-Mumbai | HMS 80:20 | INR/MT | 15,650 | 163,00 | -4% | 181,50 | -14% | Basic Prices, Excise and VAT/CST Extra |
| Scrap | CIF, Mumbai | HMS 80:20 (Europe) | USD/MT | 215 | 231 | -7% | 230 | -7% | |
| Met Coke | CFR India | 62% CSR | USD/MT | 203.6 | 165 | 23% | 148.5 | 37% | |
| Pig iron | Ex-Durgapur | Steel Grade | INR/MT | 17,650 | 18250 | -3% | 17,700 | 0% | Basic Prices, Excise and VAT/CST Extra |
| Sponge Iron | Ex- Raipur | FeM 80 (+/-1) | INR/MT | 12,900 | 12400 | 4% | 15,550 | -17% | Ex- Works, Excise and VAT/CST Extra |
| Pellet Sponge | Ex- Raipur | FeM 80 (+/-1) | INR/MT | 11,800 | 11,100 | 6% | 13,850 | -14% | Ex- Works, Excise and VAT/CST Extra |
| Billet | Ex- Mumbai | 100*100mm | INR/MT | 22,000 | 23450 | -6% | 24,750 | -11% | Ex- Works, Excise and VAT/CST Extra |
| Rebar | Ex-Mumbai | 12mm | INR/MT | 25,000 | 26700 | -6% | 28,000 | -11% | Ex- Works, Excise and VAT/CST Extra |
| Wire Rod | Ex-Raipur | 5.5mm | INR/MT | 25,400 | 27,200 | -7% | 27,500 | -8% | Ex- Works, Excise and VAT/CST Extra |
| HR Coil | Ex-Mumbai | 2.5mm, IS 2062 | INR/MT | 35,200 | 35,150 | 0% | 33,017 | 7% | Including Excise of 12.5% ; VAT Extra |
| HR Coil | FoB India | 2mm, SS 400 (China) | USD/MT | 395 | 430 | -8% | 382 | 3% | |
| HR Plates | Ex- Works | 5-10mm | INR/MT | 28,980 | 30,890 | -6% | 28,430 | 2% | Ex- Works, Excise and VAT/CST Extra |
| CR Coil | Ex-Mumbai | 0.9mm | INR/MT | 39,930 | 40,270 | -1% | 36,833 | 8% | Incld Excise of 12.5% ; VAT/CST Extra |
| Ferro Chrome | Ex-Jajpur | HC 60% | INR/MT | 64,410 | 60,020 | 7% | 63,500 | 1% | Excluding ED 12.5%, VAT/CST Extra |
| Chrome Ore | Ex-Odisha (OMC-eAuction) | Lumps, Friable 48-50% | INR/MT | 7,500 | 6,570 | 14% | 11,800 | -36% | Taxes Extra |
| Mn Ore | Ex-Balaghat | Lumps, Mn 37.5%, Fe 7% | INR/MT | 6,000 | 6,650 | -10% | 6,650 | -10% | Taxes Extra |
| SiMn | Ex- Raipur | 60/14 | INR/MT | 48,600 | 50,460 | -4% | 51,000 | -5% | Ex- Works, Excise and VAT/CST Extra |
| Other Country | |||||||||
| Coking Coal | FOB Australia | Premimum HCC | USD/MT | 134 | 92 | 46% | 83.7 | 60% | |
| Pig iron | FoB Black Sea | Steel Grade | USD/MT | 240.5 | 265 | -9% | 258.5 | -7% | |
| Billet | FOB Black Sea | 125*125mm | USD/MT | 320 | 355 | -10% | 320 | 0% | |
Source: SteelMint Research
| Production | Country | Q2 FY17 | Q1 FY17 | % Change | Q2 FY16 | % Change | |
| Crude Steel | India | 24.28 | 23.75 | 2% | 22.35 | 8% | |
| Export | |||||||
| Iron ore | India | 1.94 | 5.137 | -62% | NIL | 0% | |
| Pig Iron | India | 0.07 | NIL | 0% | 0.04 | 75% | |
| Long Steel | India | 0.196 | 0.147 | 33% | 0.113 | 73% | |
| Flat Steel | India | 1.61 | 0.99 | 63% | 0.91 | 77% | |
| Si Mn | India | 0.12 | 0.07 | 71% | 0.14 | -14% | |
| FeCr | India | 0.16 | 0.11 | 45% | 0.124 | 29% | |
| FeMn | India | 0.02 | 0.02 | 0% | 0.028 | -28% | |
| Import | |||||||
| Iron ore | India | 1.63 | 1.33 | 23% | 1.04 | 56% | |
| Coking Coal | India | 11.59 | 12.58 | -8% | 11.88 | -2% | |
| Non coking Coal | India | 35.16 | 45.2 | -22% | 38.58 | -9% | |
| Scrap | India | 0.92 | 1.6695 | -45% | 1.27 | -27% | |
| Long Steel | India | 0.117 | 0.141 | -17% | 0.146 | -19% | |
| Flat Steel | India | 1.04 | 1.4 | -26% | 2.28 | -54% | |
Quantitiy in MnT
Source: SteelMint Research
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