Indian steel market showed mix trends in week 25 as prices registered slight changes of INR 200-500/MT (USD 3-8), W-o-W.
In the week, domestic long and semis prices moved up over strong demand. However, flat steel prices reduced marginally due to weak demand amid rising imports.
Raw material Offers: Indian domestic pellet offers firm, while exports offers up by USD 2-3/MT to USD 86-87/MT CNF. The manufacturers are receiving good inquiries from the global buyers.
As per the Indian customs, NMDC which are the India’s largest Iron ore miner, reported fall in production by 11% M-o-M to 2.65 MnT in May’17. However, pellet exports increased by 12% M-o-M in May’17 to 0.55 MnT.
Domestic Scrap prices remain under pressure owing to bulk scrap imports on Indian Ports. Recently, 5th bulk shipment landed on Chennai Port. Also, for the Jul’17 shipments the importers have started the negotiation to finalize the deals.
Coking Coal Offers: Indian steel makers have resumed bookings for Coking coal as they are assuming that current prices are bottom out.
Semi Finished steel showed improvement: On weekly basis, domestic billet prices moved up by INR 200-400/MT owing to good demand in the finish long steel.
Indian billet exporters become active and recently bulk shipment is exported to Bangladesh of 15,000-20,000 MT. The deal price was heard around USD 403-405/MT FOB east coast.
Finish Steel Updates: The long steel (rebar, structure and wire) market remained on a positive note as the offers moved by INR 400-600/MT, W-o-W. The demand amid the end users remained good and inventories with the manufacturers were low with no halt in production. The sellers are quite optimistic about the demand to remain on positive end.
Domestic flat steel offers remained firm due the anemic demand and bullish sentiments. The traders and manufacturers kept their offers unchanged for HRC and CRC but cut the plate offers by INR 500/MT.
As per SteelMint sources, Indian importers have again become active and have booked decent quantities for flat steel from Japan and South Korea owing to cheaper offers.
Raw Material and Finish Steel Prices as on Week 25 ( Till 17 Jun’17)
| Products | Markets | Taxes | Prices in INR/MT | W-o-W |
| Pellet Fe 63%, 6-20 mm | Ex-Barbil | ED 12.5%, VAT/CST Extra | 3,800 | 0 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET | 3,440 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 157 | -2 |
| Scrap HMS (80:20) | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 20,500 | -600 |
| C-DRI 80 FeM | Ex-Raipur | ED 12.5%, VAT/CST Extra | 16,000 | +200 |
| P-DRI 80 FeM | Ex-Raipur | ED 12.5%, VAT/CST Extra | 14,400 | +300 |
| Pig iron Steel grade | Ex-Raipur | ED 12.5%, VAT/CST Extra | 22,000 | -150 |
| Billet 125*125 MM | Ex-Raipur | ED 12.5%, VAT/CST Extra | 25,400 | +400 |
| Rebar (12mm) | Ex-Raipur( Medium Scale) | ED 12.5%, VAT/CST Extra | 29,600 | +400 |
| Ex-Mumbai( Large Scale) | ED 12.5%, VAT/CST Extra | 33,500 | 0 | |
| Wire Rod (5.5 mm) | Ex-Raipur | ED 12.5%, VAT/CST Extra | 29,500 | +100 |
| Structure ( 40 Angle) | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 30,800 | 0 |
| HRC (2.5-8 mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 38,500 | 0 |
| CRC(0.90mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 45,500 | 0 |
| HR Plate(5-10mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 39,000 | -500 |
Sources: SteelMint Research
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