Indian Steel Market Highlights, Week 39

Indian steel market moved downwards in week-39 (18-24 Sep) on persistent sluggish demand in the domestic market.

In the week, prices decline – Semis & Long products by INR 200-800/MT (USD 3-13) and a sharp fall being reported in Flat steel by INR 500-1,500/MT (USD 8-24).

Raw Material:  Production and dispatch of iron ore have come to a halt for over a week now. According to reports the temporary suspension of dispatches was physical verification of stocks.

East India based pellet maker – Jindal Steel & Power (JSPL) offered 50,000 MT pellets via online pellet tender conducted in the beginning of the week for October shipment. As per market sources, the pellet maker has received highest bid at around USD 118.5/MT, CFR China.

Indian bulk scrap imports remain quiet this week, offers for HMS 1&2 (80:20) in containers for Dubai origin fall by USD 5-10/MT at USD 305-310/MT, CFR Nhava Sheva. The total imports in Indian ports in CY17 (Jan-Jun’17) are stood at 2.23 MnT, as per SteelMint Stats.

Coking Coal:  A sense of uncertainty prevailing among the steel makers in China has prompted them to temporarily halt Coking Coal imports. There is a possibility of the Chinese government cutting down steel production there, to curb atmospheric pollution and rationalize supply with the actual demand.  As a result of the bearish sentiment among the Chinese steel producers, Coking coal sellers in Australia have lowered their offers to around USD 206.50/MT FoB Australia.

Semis Finished Steel: In the week, Indian sponge & billet market remained downtrend as demand was stagnant by re-rollers end. Prices for both the products decline by INR 200-800/MT (USD 3-13).

In context to exports, Vizag Steel concluded 24,768 MT billet (150*150 mm) export tender for Nepal at around USD 480-490/MT (ex-mill). In the month, Indian bulk billet exports cross 100,000 MT, data maintained by SteelMint stats.

Further, Indian sponge iron export price assessment increase by USD 5/MT despite limited buying interest by Bangladesh based smelters. The prices surge in line increase in transportation cost & higher domestic offers.

Domestic pig iron offers also slump around INR 500/MT (USD 8) amid price corrections in sponge & billet. Meanwhile, pig iron export price assessment increase further and stood at USD 380/MT, FoB against last week at USD 370/MT.

Finish Long: With decline in semis market the Finished long offers also slump around INR 500-700/MT on weekly basis in Rebars & Wire rod offers.

Flat Steel: Nation has again witnessed decline in flat steel prices in few major markets by INR 500-1,500/MT (USD 8-24) W-o-W in traders market owing to dull demand prevailing in the domestic market amid monsoons and upcoming festive holidays. However, major steel manufacturers have kept the domestic flat steel prices unaltered.

Few trade sources shared that heavy rains in few regions has also lead to dull buying and resulted in fall in flat steel prices in domestic market. If trade sources are to be believed there are less chances of further revision in prices in remaining days of the month.

Indian Raw material and Finished Steel reference Prices as on 23 Sept (Week 39)

Prices are Ex-works, Exclusive of GST at 18%

Indian Export Reference Prices

Source: SteelMint Research