Indian steel market moved downwards in week 35 (21-26 Aug’17), majorly in Semis and long products. However there was stability in flat steel offers amid moderate demand in domestic market.
Meanwhile, the seasonal effect & festive off in the major Indian trade markets led to thin trades.
Raw Materials: Odisha based Indian private merchant iron ore miners raise iron ore lumps prices by INR 200-300/MT and fines prices by INR 100-150/MT due to rising sponge iron and pellet prices. NMDC may consider increasing iron ore prices for September.
Indian pellet export offers hit 3 years high on recent export tender by Jindal steel, which fetched highest bid at USD 111.5/MT CFR China, equivalent to USD 99-100/MT FOB India for mid September shipment. However two more export deals were reported at around 108-109/t CFR China for Oct Shipment. Domestic pellet offers rise by upto INR 400/MT.
Indian imported scrap market remained silent this week with no major inquiries. They continued to prefer domestic scrap. Price assessment for HMS (1&2) is around USD 320-325/MT, CNF Nhava Sheva.
Coking Coal: Rising demand supported the Australian Coking Coal offers where in spot coal offers reached USD 203.5/MT, FoB Australia equivalent to USD 215.30/MT, CNF India. Strong demand by the Chinese manufacturers; who have imported the coal in bulk volumes to run their plants, which operated at high rates.
Semi Finished: MMTC cancels 30,000 MT pig iron export tender (which was floated on behalf of NINL) on higher price expectation.Company received highest bid at around USD 355/MT FOB India and parties were heard to have negotiated to pay USD 2-5/MT higher than the placed bids. But expectations were around USD 362-364/MT FOB, according to sources. MMTC issues fresh export tender of 30,000 MT expiring on 1st Sep. NINL has kept its domestic pig iron prices unchanged till September 1.
No fresh billet export deal was reported from India Last deal of 125 mm was heard settled at around USD 505/MT FOB India (Haldia) by Steel Authority of India. No concrete offers from private manufacturers, but buying interest estimated at around USD 505-510/MT FOB India. Domestic semis (Sponge & Billet) offers moved down by INR 500-1,000/MT (USD 7-16).
Finish Long Market: Long steel rebar offers fall upto INR 1,500/MT (major fall in Delhi) owing to seasonal weak demand. Also, the structure offers fall by INR 300-900/MT, W-o-W.
Finish Flat: Domestic flat steel prices remained stable this week however as per sources prices may move up by around INR 1,000-1,500/MT(USD 15-23) in beginning of Sept 17. Price assessment for HRC (2.5mm) is around INR 38,500/MT (ex-Mumbai) and around INR 39,000/MT (ex-Chennai). While that for CRC (0.9 mm) is around INR 42-43,000/MT (ex-Mumbai) and INR 43,000/MT (ex-Chennai). Prices are excluding GST at 18%.
Silico Manganese: Indian Silico Manganese prices have been influenced highly by high overseas inquiries. Domestic offers remained relatively firm, as Silico Manganese 60-14 grade prices reached INR 66,500/MT (Ex-Raipur) and INR 67,000/MT (Ex-Durgapur). Export offers for 65-15 grade escalated following huge number of overseas inquiries by USD 30/MT W-o-W at USD 1,180/MT FOB India.
Indian Raw material and Finished Steel reference Prices as on 26th Aug (Week 35)
| 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 | 4800 | +225 |
| Iron ore Fe 62%, 10-30 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET, GST at 5%Extra | 3750 | +300 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 215.9 | +9.7 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 21200 | -200 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 18700 | -600 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 17400 | -800 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 25000 | +200 |
| Billet 125*125 MM | Ex-Mumbai | GST at 18% Extra | 28000 | -550 |
| Rebar (12mm) | Ex-Mumbai (Medium Scale) | GST at 18% Extra | 31400 | -1000 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 32300 | -600 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 32200 | -800 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 38500 | 0 |
| CRC(0.90mm) | Ex-Mumbai | GST at 18% Extra | 43000 | 0 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 38000 | 0 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices
| Commodity | Size and Grade | Prices | 1W | 1M |
| Pellet | Fe 64% | 98 | 94.5 | 90 |
| Billet | 150*150 mm | 500 | 492 | 440 |
| Pig Iron | Steel Grade | 360 | 345 | 330 |
| HRC | 2.5-8mm, IS 2062 | 575 | 575 | 510 |
Sources: SteelMint Research
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