Indian steel market remained quite uncertain for the week 29 (10-15 July, 2017) as the prices of raw materials like pellet and coking coal have moved up.
Whereas, on the SteelMint’s weekly assessment prices of Semis & Finished long steel products fell by INR 500-1,000/MT (USD 8-15) and HRC domestic offers remained firm as there was a sharp hike in the offers in week 28.
Raw material: Domestic iron ore offers remained firm, while in pellet domestic as well as export offers surge on account of the improved demand by the Chinese buyers. Rising global offers has increased the realization for Indian pellet exports.
Also, Jindal SAW increased the pellet offers on expected increase in export demand by INR 300/MT to INR 4,100/MT (loaded to wagon)
Indian bulk scrap imports is quiet since past two weeks due to ongoing monsoon season which are keeping away from bulk bookings currently. The total imports to Indian ports in CY17 (Jan-Jul’17) are supplemented to 295,020 MT.
Coking Coal: Supply disruption of coal from Australian ports has resulted in significant rise in offers by USD 12/MT with current offers around USD 175/MT, CNF India.
Fall in Semi Finished Offers: The semi finished steel offers reeled under pressure as there was sharp decline in billet offers by INR 500-700/MT and sponge by INR 100-500/MT as per SteelMint’s weekly price assessment. The decline in the offers was due to lull demand in finished long steel products.
No major export deals were heard in a week’s duration for billet and the offers remained unaltered at USD 415-420/MT, FoB India.
Pig Iron offers slightly increase in a week’s duration owing to supply crunch, improved export demand and significant rise in global coking coal & scrap prices.
Finish Steel Market Update: For the week domestic rebar offers declined in major regions like Central, South and East parts of the country. Similarly, marginal correction was observed in the Wire and Structure offers.
As per the market participants this is the seasonal slowdown which has mounted pressure on Indian re-rollers to gradually decrease their offers.
Flat Steel domestic prices remained firm for the week 29 after a sharp hike of INR 1,000/MT a week ago by the large steel makers. According to the market participants, demand has picked up as the traders started to reinstate the inventories.
Although, export offers for flat steel inched up in the wake of optimistic demand experienced in the domestic market. Major Indian steel players are also gearing up exports on rising prices in global market and higher realization in exports.
Raw material and Finished steel Reference prices for Week 29 (10-15 Jul’17)
| 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 | 4,100 | 100 |
| 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 | 175 | 12 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 19,800 | -200 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 16,500 | 0 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 15,000 | 0 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 21,400 | 600 |
| Billet 125*125 MM | Ex-Mumbai | GST at 18% Extra | 26,600 | 0 |
| Rebar (12mm) | Ex-Mumbai(Medium Scale) | GST at 18% Extra | 30,300 | 0 |
| Ex-Mumbai( Large Scale) | GST at 18% Extra | 33,900 | 0 | |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 30,100 | -100 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 31,100 | -100 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 35,500 | 0 |
| CRC(0.90mm) | Ex-Mumbai | GST at 18% Extra | 39,000 | 0 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 35,500 | 0 |
Export Offers (FoB India) Week 29
| Commodity | Prices in USD/MT |
| Pellet | 88-89 |
| Billet | 415-420 |
| Pig Iron | 300-305 |
| HRC | 500-505 |
| HR plates | 515-520 |
Sources: SteelMint Research
Leave a Reply