Post GST, in week 28 (3-8th Jul’17) the Indian steel market observed multiple sentiments where in the billet and rebar offers declined marginally by medium and small scale producers up to INR 400/MT (USD 6). However, the flat steel i.e. HRC offers rose up to INR 1,100/MT ( USD 17), W-o-W.
Raw material Offers: The domestic raw material offers reeled under pressure where in NMDC – India’s largest Iron ore and state owned merchant miners slashed the offers up to INR 230/MT (USD 4) for Jul’ 17 deliveries.
Exports: The Indian Iron ore exports registered a significant fall by 87% in Jun’17 to 0.25 MnT compared to 1.92 MnT in May’17. Although exports of pellet have increased about two folds in Q1 FY18, to 1.64 MnT against 0.84 same quarter in previous fiscal.
India has so far imported 9 bulk scrap vessels in CY17 with total quantity of 219,390 MT. Even though Indian mills are running short of the scrap they are keeping away from bulk buying owing to less clarity over GST and comparatively cheaper domestic scrap offers.
Coking Coal: Coking coal offers are on the rising mode, being pulled by active imports by the Chinese Steel Mills. The offers are witnessed at USD 153/MT, FoB Australia equivalent to USD 163/MT CNF India.
JSW Steel has recently secured through an auction the Moitra Coking Coal mine in Jharkhand. The mine bears an extractable reserve of around 30 MnT.
Semis Finished Vary marginally: Indian Semis offers remained volatile (by INR 500/MT) during last week (week 28) but it started to pick with weekend as there was good demand in the finished steel products.
Billet export offers moved up by USD 5/MT to USD 415-420/MT. The prices surge owing to rising global scrap offers and absence of the Chinese billet in the global market.
Industry participants believed that, the market to remain on positive note in the coming week owing to favorable demand as the stockiest are in verge to replenish the stock post GST.
Finish Steel Market Update: Indian crude steel output surge by 4% Y-o-Y between Apr-Jun 2017 to 24.7 MnT as compared to 23.7 MnT in the same duration last year.
The large producers increased the rebar offers marginally by INR 400-500/MT where there was a marginally decrease in offers by medium and small scale rebar producers by INR 300-500/MT, W-o-W. Further the structure offers uptick by INR 200-800/MT as there was good demand for light structure.
The flat steel market improved as the global flat steel market is on rising mode. Indian HRC domestic prices surge by INR 1,000/MT amid rise in export offers by USD 10/MT, with offers around USD 470-475/MT. Other flat steel like CRC prices remained almost firm for the week.
Raw material and Finished steel prices as on 8 Jul 2017 (Week 28)
| Products | Regions | Taxes | Prices in INR/MT | W-o-W |
| Pellet Fe 63%, 6-20 mm | Ex-Barbil,Loaded to wagon | GST at 5% Extra | 4,000 | 150 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET, GST at 5%Extra | 3,150 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 163 | 8 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 20,000 | -200 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 16,300 | -900 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 14,700 | -700 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 21,400 | -100 |
| Billet 125*125 MM | Ex-Mumbai | GST at 18% Extra | 27,300 | -100 |
| Rebar (12mm) | Ex-Mumbai(Medium Scale) | GST at 18% Extra | 30,300 | -600 |
| Ex-Mumbai( Large Scale) | GST at 18% Extra | 33,900 | 400 | |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 30,200 | -800 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 31,200 | -400 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 35,500 | 1,100 |
| CRC(0.90mm) | Ex-Mumbai | GST at 18% Extra | 39,000 | 100 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 35,500 | 1,400 |
Source: SteelMint Research
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