Indian Steel prices fall further on less demand, improved supply & declining raw materials. As per assessment, the prices slump by INR 100-500/MT (upto USD 7) through the mid size mills, day-on-day.
The major price corrections in Billet reported in Gujarat & Hyderabad by INR 500/MT owing to dull demand as well access supply of raw materials.
Meanwhile, the sponge iron prices fall sharply in Raipur, Central India by INR 300-400/MT on resume supply by couple of integrated plants. As per sources, the sponge iron supply is healthier which have raised price competitiveness among suppliers.
SteelMint’s latest price assessment for induction furnaces billet in Indian market stood at INR 30,700-34,000/MT (USD 438-485) ex-plant.
Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 19,800-20,800/MT (USD 282-297); prices are ex-plant & excluding GST.
Rupee & BSE Sensex
— On 3rd January 2019 (Thursday) INR to USD exchange rate stood at INR 70.12.
— ICEX (Indian Commodity Exchange Ltd) Feb’19 contract for STEELLONG today open at INR 33,400/MT & last traded (IST 18:25) at INR 33,150/MT.
— BSE Sensex closed at 35,513 (-377) on Thursday, as against last day (Wednesday) at 35,891(-363).
— NSE Nifty50 index was closed today at 10,672(-120)
Raw Materials
— NMDC reduced iron ore prices from its Chhattisgarh mines upto 10-12% (INR 300-465/MT) for Jan’19. CG based units procured 29 rakes in Dec’18 against 22 rakes in previous month.
— NMDC exports of iron ore for the month of Dec’18 witnessed fall of 28% to 48 rakes as compared to 67 rakes a month before.
— South African RB2 (5500 NAR) coal offers are assessed at USD 64/MT on FoB basis & USD 78/MT CNF India.
— Melting scrap offers in Western India- Mumbai & Jalna (Maharashtra) decline by INR 300-400/MT in a day trade activities.
Semi Finished
— Odisha based medium size sponge manufacturers offered FeM 80 C-DRI (70:30 mix material) at INR 19,800-20,000/MT ex-plant & excluding GST.
— BMM Ispat a price trend setter in South Indian sponge market has kept offers unaltered today and offered FeM 80 P-DRI lumps at INR 19,500-19,600/MT ex-Bellary, Karnataka.
— BIOP Steels in South India has offered FeM 80 & 82 C-DRI lumps at INR 20,100/MT & 20,500/MT ex-plant, Karnataka; an official reported. And added little demand increased, as of now no major selling pressure in the market.
— Indian Sponge iron export offers to Bangladesh remained firm amid weak demand. The price assessment stood at USD 345-350/MT CFR Chittagong, Bangladesh.
— One of the Integrated plant in Raipur has sharply reduced sponge prices and offered P-DRI at INR 19,000-19,100/MT as against last day at INR 19,300-19,400/MT ex-plant.
— The sources are assuming, Neelachal Ispat (NINL) to reduce prices in fresh prices circular as bookings was not up to the mark in last domestic offers. Also as export demand weak, the producer may force to cut prices to improve sales.
Wire Rod & Pipe
— Hyderabad (South India) based Pipe manufacturer Mahalakshmi Profiles Pvt. Ltd (MPL) has offered ERW Pipe at INR 39,900/MT ex-plant. (basic & excluding GST).
— East region based – Shakambhari Ispat & Power Ltd has offered Wire Rod 5.5 mm at INR 38,000/MT and Rebar (12 mm) at INR 36,800/MT, ex-plant.
— The trade discount in Wire rod in Raipur, through the re-sellers heard at around INR 1,000-1,100/MT in HB Wire by INR 500-600/MT.
Rebar (12 mm)
— Rathi Steels based in North region offering at around INR 38,600/MT.
— Raipur based – SPEED TMT offering at INR 35,300/MT (Down by INR 200/MT).
— Gujarat based Shreeyam Power & Steel Industries Ltd. (National TMT) offering at INR 38,500/MT FoR (Down by INR 300/MT).
— Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) TMT offering at INR 36,900/MT (Up by INR 200/MT).
— Jalna based Kalika Steel Alloys Pvt Ltd offering at INR 36,700/MT (Up by INR 200/MT).
— South region based Prakash Ferrous Ind. Pvt. Ltd (Tirumala) unchanged their offering at INR 39,500/MT.
— Chennai based ARS Steel (ARS 500 D) current offering at INR 40,500/MT.
Note – The prices mentioned above are ex-work, excluding GST & changes are on day basis.
Reference prices as on 3rd January 2019
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| Scrap | Ex-Alang | HMS(80:20) | 25,900 | 25,800 | 26,000 | -200 | 26,500 | 26,800 |
| Ex-Mumbai | HMS(80:20) | 25,200 | 25,100 | 25,300 | -300 | 25,400 | 26,200 | |
| Ex-Chennai | HMS(80:20) | 24,200 | 24,100 | 24,400 | 0 | 24,100 | 24,900 | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 20,800 | 20,700 | 20,900 | -100 | 20,300 | 21,600 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 19,900 | 19,800 | 20,000 | -100 | 19,800 | 20,800 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 20,800 | 20,700 | 20,900 | -300 | 20,900 | 21,900 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 19,800 | 19,700 | 19,900 | 0 | 20,000 | 20,800 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 19,600 | 19,500 | 19,700 | -100 | 19,100 | 20,600 |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 19,100 | 19,000 | 19,100 | -400 | 19,500 | 20,500 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 19,500 | 19,400 | 19,600 | 0 | 19,600 | 20,200 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 20,200 | 20,100 | 20,300 | 0 | 20,200 | 20,800 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 33,700 | 33,600 | 33,700 | -100 | 33,750 | 34,900 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 31,200 | 31,200 | 31,300 | -100 | 30,650 | 31,500 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 30,300 | 30,200 | 30,400 | 0 | 30,000 | 30,700 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 30,600 | 30,600 | 30,700 | -100 | 30,450 | 31,250 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 32,900 | 32,800 | 33,000 | +300 | 33,400 | 33,400 | |
| Billet | Ex-Mandi Gobindgarh | 125×125 mm, IS 2831 | 34,000 | 33,900 | 34,100 | -100 | 33,950 | 35,200 |
| Ex-Durgapur | 125×125 mm, IS 2831 | 31,600 | 31,500 | 31,700 | 0 | 31,150 | 31,900 | |
| Ex-Rourkela | 125×125 mm, IS 2831 | 30,700 | 30,600 | 30,700 | 0 | 30,300 | 31,000 | |
| Ex-Raipur | 125×125 mm, IS 2831 | 31,500 | 31,400 | 31,600 | -100 | 31,350 | 31,900 | |
| Ex-Ahmedabad | 125×125 mm, IS 2831 | 33,200 | 33,100 | 33,300 | -500 | 33,600 | 33,900 | |
| Ex-Mumbai | 125×125 mm, IS 2831 | 33,100 | 33,000 | 33,200 | +300 | 33,600 | 33,600 | |
| Ex-Chennai | 125×125 mm, IS 2831 | 33,300 | 33,200 | 33,500 | 0 | 33,500 | 33,500 | |
| Ex-Hyderabad | 125×125 mm, IS 2831 | 32,500 | 32,300 | 32,700 | -500 | 33,000 | 33,000 | |
| TMT | Ex-Delhi/NCR | 12-25 MM, IS 1786- 500 Fe | 37,400 | 37,200 | 37,600 | -200 | 37,000 | 37,800 |
| Ex-Durgapur | 12-25 MM, IS 1786- 500 Fe | 36,500 | 36,300 | 36,700 | 0 | 35,600 | 37,100 | |
| Ex-Raipur | 12-25 MM, IS 1786- 500 Fe | 35,300 | 35,200 | 35,400 | 0 | 35,000 | 35,500 | |
| Ex-Mumbai | 12-25 MM, IS 1786- 500 Fe | 36,400 | 36,200 | 36,600 | +200 | 36,700 | 36,600 | |
| Ex-Chennai | 12-25 MM, IS 1786- 500 Fe | 37,400 | 37,300 | 37,600 | 0 | 37,700 | 37,700 | |
| Ex-Hyderabad | 12-25 MM, IS 1786- 500 Fe | 37,200 | 37,000 | 37,400 | -300 | 37,500 | 37,500 | |
| Wire Rod | Ex-Durgapur | Wire Rod(5.5 MM) | 37,900 | 37,700 | 38,000 | – 200 | 37,200 | 38,200 |
| Ex-Raipur | Wire Rod(5.5 MM) | 38,600 | 37,700 | 38,600 | 0 | 37,900 | 38,800 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
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