During week 33 (7-12 Jul), domestic Iron and steel offers remained volatile due to subdued trade activities as in 1st half of week the price gained momentum while in the later days prices declined on fading trade activities due to holiday’s mood in the market.
During these days Indian semis offers increased by INR 100-600/MT (USD 1.5-10), while finish long steel – rebar offers registered price volatility by INR 200-500/MT.
Further the flat steel offers were unaltered in the week and are expected to increase sharply in coming times.
Raw Material: NMDC, the state owned India’s largest iron ore miner kept their offers unaltered for the Aug 2017 Deliveries. While, the pellet offers rose up to INR 400/MT in domestic market due to scarcity of material on rising exports & logistics issue in Iron ore & coal.
In line with other raw material Indian domestic scrap offers increase by INR 300-1,000/MT (USD 5-15) and imported scrap offers also witnessed a sharp hike by around USD 10/MT amid rising global offers. With the hike in offers the Indian scrap importers quiet and kept away from bookings. Fresh offers for HMS 1 & 2 are gauged around USD 320/MT, CFR Nava Shava.
Coking Coal offers continue to Surge: Coking Coal prices have come under the twin influence of stronger demand and supply issues that imparted upward momentum to the prices. The offers rose around USD 11/MT FoB Australia to around USD 192/MT equivalent to USD 204/MT CFR India.
Semi Finished Offers Moved up on Favorable demand: Domestic billet and sponge offers continue to rise amid good demand, short supply and higher export orders. In a week’s duration, domestic Sponge & Billet offers rose in the range of INR 400-600/MT (USD 6-9).
Recently, Vizag Steel concluded billet exports around USD 480-485/MT, FoB India which is up by USD 35/MT than the last export tender during Jul’17.
Other Medium and small mills are also involved in exports in small tonnage to South East Asian Countries.
Long Steel Offers Improved marginally: Despite rise in input cost (surge in the billet offers) the rebar offers reel under pressure and reported volatility due to seasonal slowdown. Meanwhile, following good demands in the structural steels – domestic wire and structure offers moved up by INR 600/MT (USD 9).
Few large producers are heard to be involved in the rebar exports to the South East Asian countries owing to sharp hike in export offers by the Chinese Mills. In fresh, Vizag Steel concluded another Wire rod export of 16,000 MT tender at USD 520/MT.
Flat Steel Offers Rise Further: The large flat steel manufacturers likely to announce the further hike in offers by INR 1,000-1,500/MT (USD 15-23) in near terms but as of now the prices are firm. This hike in offers is planned in line with the rise in the global market, rising production cost and improved domestic demand.
Moving ahead to export offers, major steel makers have hold their offers as there is sharp hike in offers by Chinese Exported and the Indian exporters have opted for the wait and watch mode until they get further clarification.
Indian Raw material and Finished Steel Reference Prices as on 12th Aug (Week 33)
| 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 | 4,450 | 300 |
| 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 | 204 | 12 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 21,000 | 300 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 18,700 | 300 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 17,400 | 0 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 24,500 | 200 |
| Billet 125*125 MM | Ex-Mumbai | GST at 18% Extra | 28,400 | 600 |
| Rebar (12mm) | Ex-Mumbai (Medium Scale) | GST at 18% Extra | 31,800 | 600 |
| Ex-Mumbai (Large Scale) | GST at 18% Extra | 33,500 | 0 | |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 32,200 | 300 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 32,600 | 500 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 37,500 | 0 |
| CRC(0.90mm) | Ex-Mumbai | GST at 18% Extra | 42,500 | 500 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 37,000 | 600 |
Prices in INR/MT
Source: SteelMint Research
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