Indian steel market remained downtrend in the Week – 41 (2nd – 8th Oct) as the prices dipped owing to lack of domestic demand and also due to lower export orders.
During the week prices of Semis & Finished products down approximately INR 500-1,000/MT (USD 8-15) in across major trading markets.
Raw Materials: The domestic raw material offers reeled under pressure where in NMDC – India’s largest Iron ore and state owned merchant miners slashed the offers up to INR 100/MT for October deliveries.
In the week, OMC’s Iron ore e-auction fetched good response with almost 80% of the offered material getting sold. Koira lump bid prices were higher by INR 50/MT than base prices of INR 2,650/MT.
While in Pellet market, Jindal SAW reduced pellet offers by INR 300//MT to INR 6,750/MT (delivered Kandla) owing to fall in global iron ore prices making imported lumps cheaper.
As a Central India based pellet makers reported dull buying interest amid fall in sponge prices are the factors of pressurizing domestic market.
Meanwhile, Imported scrap offers to India have come down by around USD 5-10/MT W-o-W, but bulk bookings are still subdued.
Buying activities remain dull owing to an inert mood of buyers and slower comeback from the festive holidays for Dussehra. Most of the steel mills are still preferring domestic scrap over the price margin and faster deliveries than imported scrap.
Coking Coal: Nil market activity in China due to festive holidays and the Chinese government to soon impose steel production cuts in order to curb atmospheric pollution have acted as the twin factors for dampening Coking Coal market sentiment in Australia, resulting in prices of the coal coming down. Spot prices of the Premium HCC have moved down to around USD 189.50/MT FoB Australia. The prices are expected to decline further.
Semis Finished Steel: In a week’s duration, domestic Sponge & Billet offers fall in the range of INR 100-500/MT (USD 1-7). In the period major fall in sponge iron seen in Eastern India & for Billet in Western & Southern India.
On weekly basis, Indian billet export offers fall by USD 10/MT following the downtrend in global market. As of now Indian suppliers are waiting for Chinese markets to open. RINL had floated a tender for export of around 15,000 MT billets. According to market sources, the company received bids below USD 475/MT, FoB India, which cancels the export tender.
A private mill was heard to have offered square billet at around USD 490-500/MT FOB India, but deal has not been concluded yet. While another induction grade billet manufacturer heard to have sold small parcels to Africa at around USD 480/MT FOB India west coast. Current offers of Indian billet exports are assessed at USD 480-490/MT FOB India.
As per the assessment it was also noted that, Indian Bulk Billet exports increase by three folds in Sept 2017 and are recorded at 126,300 MT against 42,000 MT in Aug’17.
Further, Indian domestic pig iron offers also decline around INR 700-800/MT (USD 10-12) due to falling steel prices in the nation. While, export offers remain firm and are assessed in the range of USD 350-360/MT, FoB India.
Finish Long Steel Market: Rebar offers continue to fall for the week due to nil demand over festive season. Prices reported fall of INR 200-800/MT W-o-W after the Dussehra eve. And the major decline in Rebar seen in West & Southern region by INR 700-800/MT (USD 10-12).
However, the large players namely SAIL (Steel Authority of India Ltd) has rolled over the rebar prices as of now and the offers are assessed at around INR 34,000/MT ex-Mumbai.
Flat Steel Market: Major Indian steel makers have rolled over flat steel prices for the month of Oct’17 over dull demand. However, market participants mentioned that SAIL has increased prices by INR 500-800/MT in few markets like Southern India owing to rise in railway freight rates depending on the location.
On the other hand flat steel prices in the traders market are still on lower side by about INR 1,000-1,500/MT compared to that of manufacturers price
As per SteelMint assessment current reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 42,500-43,000/MT (ex-Mumbai), INR 44,500/MT (ex-Delhi).The prices are excluding GST @ 18%.
Indian Raw material and Finished Steel reference Prices as on 7 October (Week 41)
| 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 | 5,300 | 0 |
| Iron ore Fe 62%, 10-30 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET, GST at 5%Extra | 3,750 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 203 | -14 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 19,800 | -400 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 16,300 | -200 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 14,800 | -300 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 25,000 | -800 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 26,000 | -200 |
| Rebar (12mm) | Ex-Raipur (Medium Scale) | GST at 18% Extra | 28,800 | -400 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 30,700 | -200 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 30,200 | -920 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 38,000 | 0 |
| CRC (0.90mm) | Ex-Mumbai | GST at 18% Extra | 42,500 | 0 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 37,500 | 0 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices
| Commodity | Size and Grade | Prices | 1W | 1M |
| Pellet | Fe 64% | 106 | 109 | 112 |
| Billet | 150*150 mm | 490 | 495 | 513 |
| Pig Iron | Steel Grade | 370 | 370 | 360 |
| HRC | 2.5-8mm, IS 2062 | 562 | 590 | 590 |
Source: SteelMint Research
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