Indian steel industry has performed fairly well in FY17. Country’s crude steel output registered rise of 8.5% Y-o-Y.
Higher global prices boosted exports from India. Exports of commodities namely iron ore, pellets, pig iron, semi-finished and finished steel goods registered substantial increase in FY17.
With increased steel output, better realization from global markets and stagnant domestic demand boosted finished steel exports from India. India’s export of finished flat and long steel increased by around 76% and 62% Y-o-Y. On the other hand, amid imposed trade barriers like MIP and anti-dumping duty finished steel imports to India witnessed decline on yearly premises.
Prices
Iron ore prices declined up to 20% Y-o-Y in FY17. Sponge prices (C-DRI & P-DRI) fell up to 4% Y-o-Y. However coking coal and met coke prices moved up substantially in FY17.
Domestic flat steel prices increased up to 30% Y-o-Y in FY17. However domestic rebar prices witnessed marginal fall of 2% Y-o-Y.
Production: India’s crude steel output up 8.5% in FY17
With significant increase in crude steel production of major India steel makers like – JSW Steel, Tata Steel, Essar Steel, JSPL etc country’s crude steel output jumped 9% Y-o-Y to 97 MnT in FY17.
Import/Export
Amid higher global prices, iron ore exports from India jumped four fold from 6.04 MnT in FY16 to 24.3 MnT in FY17. Iron ore imports to India remained stable on yearly basis at 5.6 MnT. Amid increased domestic coal production, coal import to India fell 9% Y-o-Y to 200 MnT in FY17.
Increased global scrap prices resulted in less scrap imports to India. In FY17 (till Jan’17) India imported 4.25 MnT scrap compared to 6.46 MnT in FY16.
Bulk Pig iron exports from India increased 25% Y-o-Y to 0.34 MnT in FY17 owing to less supply of pig iron from CIS nations & high global prices.
Imposed trade restrictions by Indian govt. kept finished steel imports to India low in FY17. Indian flat steel imports were recorded at 4.39 MnT in FY17 (till Feb’17) against 8.06 MnT in FY16. On similar lines import of long steel to India declined from 0.66 MnT in FY16 to 0.47 MnT in FY17 (till Feb’17).
Indian Steel Price Scenario: FY17 Vs FY16
| Commodity | Delivery | Size/Grade | Unit Prices | FY17 | FY16 | % Change | Remark |
| Iron Ore | NMDC (Chhattisgarh) |
Lumps, 6-40mm, Fe 65% | INR/MT | 2,012 | 2,512 | -19.90 | Excluding Royalty, DMF & NMET |
| Iron Ore | NMDC (Chhattisgarh) |
Fines, -10mm, Fe 64% | INR/MT | 1,745 | 1,690 | 3.25 | Excluding Royalty, DMF & NMET |
| Iron Ore | Odisha | Fines, Fe 63% | INR/MT | 1,590 | 1,945 | -18.25 | Loaded to Wagons, Including Royalty, DMF & NMET |
| Iron Ore | Odisha, Sponge grade Lump |
5-18 mm, Fe 63% | INR/MT | 3,090 | 3,800 | -18.68 | Loaded to Wagons, Including Royalty, DMF & NMET |
| Pellets | Ex- Barbil | 6-20mm,63% | INR/MT | 3,640 | 3,900 | -6.67 | Basic Prices, Loaded to Wagons |
| Scrap | Ex-Mumbai | HMS 80:20 | INR/MT | 17,050 | 17,650 | -3.40 | Basic Prices, Excise and VAT/CST Extra |
| Scrap | CIF, Mumbai | HMS 80:20 (Europe) |
USD/MT | 236 | 224 | 5.36 | |
| Met Coke | CFR India | 62% CSR | USD/MT | 247 | 139 | 77.03 | |
| Pig iron | Ex-Durgapur | Steel Grade | INR/MT | 19,750 | 17,400 | 13.51 | Basic Prices, Excise and VAT/CST Extra |
| Sponge Iron | Ex- Raipur | FeM 80 (+/-1) | INR/MT | 14,100 | 14,700 | -4.08 | Ex- Works, Excise and VAT/CST Extra |
| Pellet Sponge | Ex- Raipur | FeM 80 (+/-1) | INR/MT | 13,000 | 13,350 | -2.62 | Ex- Works, Excise and VAT/CST Extra |
| Billet | Ex- Mumbai | 100*100mm | INR/MT | 24,100 | 24,750 | -2.63 | Ex- Works, Excise and VAT/CST Extra |
| Rebar | Ex-Mumbai | 12mm | INR/MT | 27,400 | 28,000 | -2.14 | Ex- Works, Excise and VAT/CST Extra |
| Wire Rod | Ex-Raipur | 5.5mm | INR/MT | 27,400 | 27,300 | 0.37 | Ex- Works, Excise and VAT/CST Extra |
| HR Coil | Ex-Mumbai | 2.5mm, IS 2062 |
INR/MT | 40,937 | 31,545 | 29.77 | Including Excise of 12.5% ; VAT Extra |
| HR Coil | CIF India | 2mm, SS 400 (China) |
USD/MT | 470 | 327 | 43.73 | |
| HR Plates | Ex- Works | 5-10mm | INR/MT | 32,360 | 28,045 | 15.39 | Ex- Works, Excise and VAT/CST Extra |
| CR Coil | Ex-Mumbai | 0.9mm | INR/MT | 43,433 | 36,890 | 17.74 | Incld Excise of 12.5% ; VAT/CST Extra |
| SiMn | Ex- Raipur | 60/14 | INR/MT | 54,106 | 46,608 | 16.09 | Ex- Works, Excise and VAT/CST Extra |
| Other Country | |||||||
| Coking Coal | FoB Australia | Premimum HCC | USD/MT | 176 | 85 | 108.28 | |
| Pig iron | FoB Black Sea | Steel Grade | USD/MT | 269 | 211 | 27.49 | |
Prices mentioned are yearly average
Source: SteelMint Research
Import & Exports Statistics of Steel Products in India
| Particulars | Country | FY17 | FY16 | % Change |
| Production | ||||
| Crude Steel | India | 97,385,000 | 89,791,000 | 8.46 |
| Export | ||||
| Iron ore | India | 24,345,466 | 6,037,310 | 303.25 |
| Pig Iron | India | 336,290 | 265,900 | 26.47 |
| Long Steel | India | 727,000* | 449,000 | 61.92 |
| Flat Steel | India | 5,340,000* | 3,026,000 | 76.47 |
| Si Mn | India | 542,000** | 671,000 | -19.23 |
| FeCr | India | 550,000** | 450,000 | 22.22 |
| FeMn | India | 100,000** | 170,000 | -41.18 |
| Import | ||||
| Iron ore | India | 5,789,750 | 5,622,065 | 2.98 |
| Coking Coal | India | 47,370,000 | 47,740,000 | -0.78 |
| Non Coking Coal | India | 147,570,000 | 167,760,000 | -12.04 |
| Scrap | India | 4,251,800** | 6,455,600 | -34.14 |
| Long Steel | India | 474,000* | 658,000 | -27.96 |
| Flat Steel | India | 4,397,000* | 8,061,000 | -45.45 |
Fig in MT
Provisional data
*updated till Feb’17, **updated till Jan’17
Source: SteelMint Stats, Indian Govt
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