Indian Iron and steel industry continued to move upward since the start of the week where in the offers rose up to INR 1,500/MT (USD 24) in a week’s duration (31st Jul’17- 05th Aug’17) in Semi Finish and Finish steel market.
Raw Material: The Judgment by Honorable Supreme Court declared 100% penalty for the Illegal Iron Ore Mining case happened in Odisha where in miner will continue with the mining activities till 31st Dec’17.
However, they will be able to restart mining operations only after compliance with statutory requirements and full payment of compensation and other dues, the mining lease holders can restart their mining operations.
This verdict of 100% penalty may lead to aggressive selling of Iron Ore by the Odisha Miners.
Pellet offers remained unaltered in east region but in Central region it rose owing to shortage of material. Offers in Central India increase by INR 150/MT, W-o-W.
In this week, scrap importers resist them from bulk buying as last week few buyers became active and booked some material. Imported scrap offers rose almost by USD 5-10/MT to India overall from all origins.
Coking Coal Offers Moved up further: In India, demand for Coking Coal is strong as steel production is going on at high rates. Moreover, some buyers were learnt to be in talks with the Canadian coal mine for diversifying the Coking Coal import regions as the occasional supply disruptions in Australia impart volatility in the coal prices. The offers moved up by USD 4-5/MT, CNF India.
Semis Finished Market Shoot Up Sharply: Sponge & Billet offers moved up by INR 700-1,000/MT (USD 11-15) owing to good demand and seasonal low production in sponge iron supported overall semi finished steel offers.
Sharp hike in the pig iron offers by Neelachal Ispat (INR 3,000/MT, USD 47) influenced the market positively in line with good demand and scarcity & high prices of coking coal.
Long Steel Offers Improve: On improved demand with approaching weekend resulted in the sharp increase in the long steel offers by INR 200-800/MT in Rebars, Wire rod and Structure offers.
Large steel maker, JSW increased their rebar offers by INR 1,000/MT (USD 15) for August 2017 deliveries owing to high input cost like coking coal and strong export inquiries. Other large steel makers might follow the suit.
Vizag steel concluded wire rod export deal at USD 500/MT, up by USD 20-25/MT against last week offers. This shipment is concluded to South East Asia which will be shipped in August 2017.
Flat Steel Further rise in August: Flat steel offers by the integrated steel makers rise further up to INR 1,500/MT (USD 23) for August shipments in the start of the month.
In line with the hike in domestic offers, market participants mentioned that Indian mills have also raised the HRC export offers by USD 5-10/MT,W-o-W basis on rising global prices and the offers are heard around USD 520-525/MT FoB basis.
SAIL concluded export tender for HR plate approximately 19,000-20,000 MT at a higher prices about USD 15/MT against last concluded tender. The deal prices was around USD 480/MT FoB India for base grade which is equivalent to USD 535/MT CFR Europe.
Domestic Raw material and Finish Steel Reference Prices for Week 32
| 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 | 4,150 | 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 | 192 | 3 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 20,700 | 400 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 18,400 | 1,000 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 17,400 | 1,000 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 24,300 | 600 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 27,000 | 700 |
| Rebar (12mm) | Ex-Raipur(Medium Scale) | GST at 18% Extra | 29,400 | 500 |
| Ex-Mumbai(Large Scale) | GST at 18% Extra | 33,500 | – | |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 31,900 | 800 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 32,100 | 800 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 37,500 | 1,500 |
| CRC(0.90mm) | Ex-Mumbai | GST at 18% Extra | 42,000 | 2,200 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 37,000 | 1,000 |
Prices are Basic, GST at 18% Extra
Indian Export Reference Prices
| Commodity | Size and Grade | Prices | 1W |
| Pellet | Fe 64% | 93-94 | 90-91 |
| Billet | 150*150 mm | 445-455 | 445-455 |
| Pig Iron | Steel Grade | 335-340 | 330-340 |
| HRC | 2.5-8mm, IS 2062 | 520-525 | 515-520 |
Prices in USD/MT, FoB India
Source: SteelMint India
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