Indian steel market remained quite uncertain owing to seasonal slowdown in domestic trades. Although, with spike in global steel prices, Indian steel manufacturers also get supported.
As per SteelMint’s assessment during the last week (Week 30), the prices of semis products like sponge & billet increase sharply up to INR 1,200/MT (USD 18) due to low production and boost in export demand.
However, long steel manufacturers and stockiest hold their offers firm owing to subdued demand despite sharp hike in billet offers.
The flat steel stockists hold their offers firms for the week. But the manufacturers have increased their offers sharply by INR 1,000/MT for Aug’17 shipments owing to strong demand and rising global market.
Raw material: Domestic Iron ore & pellet offers remained firm, while pellet’s export offer rose amid rise in demand by Chinese steel makers. Recently, pellet export deal was concluded at higher prices of USD 3-4/MT to USD 97/MT, CFR China.
Indian importers for scrap remain silent in the past week. No bookings heard owing to monsoons & cheaper domestic scrap and sponge iron availability.
Coking Coal: Following active booking by Chinese Steel Makers and supply crunch resulted coking coal offers has further swing by around USD 5/MT. For Indian buyers, these offers amount to USD 180/MT, CNF India. As per analysis, the buyers in India are considering diversifying the countries of import to tackle price volatility.
Rise in the Semis Offers: Owing to strong domestic and the export trades, the Indian semis offers marked a sharp hike – sponge by INR 300-1,200/MT (USD 4-18) & billet by INR 500-1,000/MT (USD 7-15), in a week’s duration.
Billet export offers for 150*150mm were heard around USD 430-435/MT, FoB, increase around USD 10/MT W-o-W.
Further, for pig iron offers rose sharply up to INR 1,000/MT owing to supply crunch in the market and good export inquiries.
Long Steel Offers remained low: The long steel producers were hold their offers firm despite higher input cost like costlier billet and sponge available in the market.
Flat Steel Market rose sharply: Flat steel offers remained positive due to higher realization in exports. As per the SteelMint’s sources, major flat steel makers have increased their offers by INR 1,000/MT for the Aug’17 bookings. Owing to strong sentiments in global market, the export offers might increase in coming times so that steel makers can extract maximum profit through exports.
Raw Material and Finished Steel Reference Prices as on 22 Jul’17 (Week 30)
| 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 | 0 |
| 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 | 180 | 5 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 19,500 | -300 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 16,800 | 400 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 15,500 | 600 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 23,000 | 1,000 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 26,000 | 600 |
| Rebar (12mm) | Ex-Raipur(Medium Scale) | GST at 18% Extra | 29,000 | 0 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 30,500 | 400 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 31,200 | 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 |
Indian Export (FoB India) Reference Prices for Week 30
| Commodity | Size and Grade | Prices | 1 W |
| Pellet | Fe 64% | 89-90 | 88-89 |
| Billet | 150*150 mm | 430-435 | 415-420 |
| Pig Iron | Steel Grade | 315-320 | 300-305 |
| HRC | 2.5-8mm, IS 2062 | 510-515 | 500-505 |
Source: SteelMint Research
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