The 2nd quarter of FY16 has put Indian steelmakers under pressure compared to Q1 FY16. Uncertain domestic and global steel market sentiments, dwindling demand, surge in imports and competitive Chinese steel offers have highly pressurized Indian steelmakers in the quarter.
Albeit these factors disappointed steelmakers, every cloud has a silver lining and the imposition of 20% safeguard duty on HRC has lent a ray of hope to steelmakers.
We at SteelMint analyzed and compared the Indian steel companies performance in both quaters of FY16.
Prices: In Q2 FY16, prices of raw material like iron ore, pellets and scarp declined by upto 22%, 7.6% and 17% respectively against Q1 FY16. Meanwhile, semi finish and finish long prices fell in the range of 11-15% compared to Q1 FY16.
Raw material and semis prices in global market fell upto 13% in the duration.
Production: Q2 is comparatively stable for India’s crude steel production. The country produced about 22.65 MnT steel in Q2 FY16; similar to 22.7 MnT in Q1 FY16.
Export/Import: In export terms, iron ore export is nil. While, ferroalloy export increased by upto 16% in the quarter.
Import of raw material and long steel fell by upto 51% and 28% respectively in Q2 FY16 in contrast to Q1 FY16. While, flat steel imports surged by 27% in the duration.
| Commodity | Delivery | Size/Grade | Unit Prices | Q1 FY16 | Q2 FY16 | % Change | Remarks |
| India | |||||||
| Iron Ore | NMDC (Chhattisgarh) | Lumps, 6-40mm, Fe 65% | INR/MT | 3,050 | 2,920 | -4.3 | Excluding Royalty |
| Iron Ore | NMDC (Chhattisgarh) | Fines, -10mm, Fe 64% | INR/MT | 1,960 | 1,660 | -15.3 | Excluding Royalty |
| Iron Ore | Odisha | Fines, Fe 63% | INR/MT | 1,680 | 1,450 | -13.7 | Ex-mines,Including Royalty |
| Iron Ore | Odisha,Sponge grade Lump | 5-18 mm, Fe 63% | INR/MT | 4,050 | 3,200 | -21 | Ex-mines,Including Royalty |
| Iron Ore | Karnataka, Fines | Fe 58% | INR/MT | 1,320 | 1,030 | -22 | Weighted average bid price, Basic |
| Pellets | Ex- Barbil | 6-20mm,63% | INR/MT | 4,800 | 4,450 | -7.3 | Basic Prices, Loaded to Wagons |
| Scrap | Ex-Mumbai | HMS 80:20 | INR/MT | 20,700 | 18,100 | -12.6 | Basic Prices, Excise and VAT/CST Extra |
| Scrap | CIF, Mumbai | HMS 80:20 (Europe) | USD/MT | 275 | 228 | -17.1 | |
| Met Coke | CFR India | 62% CSR | USD/MT | 165 | 149 | -9.7 | |
| Pig iron | Ex-Durgapur | Steel Grade | INR/MT | 18,400 | 17,650 | -4.1 | Basic Prices, Excise and VAT/CST Extra |
| Sponge Iron | Ex- Raipur | FeM 80 (+/-1) | INR/MT | 17,000 | 15,550 | -8.5 | Ex- Works, Excise and VAT/CST Extra |
| Pellet Sponge | Ex- Raipur | FeM 80 (+/-1) | INR/MT | 15,300 | 13,850 | -9.5 | Ex- Works, Excise and VAT/CST Extra |
| Billet | Ex- Mumbai | 100*100mm | INR/MT | 27,850 | 24,750 | -11.1 | Ex- Works, Excise and VAT/CST Extra |
| Rebar | Ex-Mumbai | 12mm | INR/MT | 30,800 | 28,000 | -9.1 | Ex- Works, Excise and VAT/CST Extra |
| Wire Rod | Ex-Raipur | 5.5mm | INR/MT | 29,700 | 27,500 | -7.4 | Ex- Works, Excise and VAT/CST Extra |
| HR Coil | Ex-Mumbai | 2.5mm, IS 2062 | INR/MT | 35,350 | 32,950 | -6.8 | Including Excise of 12.5% ; VAT Extra |
| HR Coil | CIF India | 2mm, SS 400 (China) | USD/MT | 385 | 325 | -15.6 | |
| HR Plates | Ex- Works | 5-10mm | INR/MT | 30,100 | 28,300 | -6 | Ex- Works, Excise and VAT/CST Extra |
| CR Coil | Ex-Mumbai | 0.9mm | INR/MT | 40,100 | 36,600 | -8.7 | Incld Excise of 12.5% ; VAT/CST Extra |
| SiMn | Ex- Raipur | 60/14 | INR/MT | 46,350 | 46,000 | -0.8 | Ex- Works, Excise and VAT/CST Extra |
| Other Country | |||||||
| Coking Coal | FOB Australia | Premimum HCC | USD/MT | 88.2 | 83.9 | -4.9 | |
| Pig iron | FoB Black Sea | Steel Grade | USD/MT | 258 | 230 | -10.9 | |
| Billet | FOB Black Sea | 125*125mm | USD/MT | 365 | 315 | -13.7 | |
| Production | |||||||
| Crude Steel | India | MnT | 22.7 | 22.65 | -0.2 | ||
| Export | |||||||
| Iron Ore | India | MnT | 0.04 | Nil | Port Data | ||
| Pig Iron | India | MnT | 0.18 | 0.04 | -77.8 | Port Data | |
| Long Steel | India | MnT | 0.1 | 0.13 | 30 | ||
| Flat Steel | India | MnT | 0.75 | 0.76 | 1.3 | ||
| SiMn | India | MnT | 0.16 | 0.14 | -13.4 | ||
| FeCr | India | MnT | 0.11 | 0.12 | 13.6 | ||
| FeMn | India | MnT | 0.02 | 0.03 | 16.4 | ||
| Import | |||||||
| Iron Ore | India | MnT | 2.14 | 1.04 | -51.4 | Port Data | |
| Coking Coal | India | MnT | 11.79 | 11.88 | 0.8 | Port Data | |
| Non- Coking Coal | India | MnT | 47 | 38.58 | -17.9 | Port Data | |
| Scrap | India | MnT | 1.59 | 1.35 | -15.1 | ||
| Long Steel | India | MnT | 0.21 | 0.15 | -28.6 | ||
| Flat Steel | India | MnT | 1.69 | 2.15 | 27.2 | ||
MnT – Million Tonnes
Source: SteelMint Research
Leave a Reply