Indian steel market showed mix sentiments in the past week. Where in Semis & Long steel prices rose in a week but due to weak demand the flat steel market registered further cut in the offers.
Domestic, trades were mute in the starting of week, however in later days it gained momentum.
– Iron Ore: NMDC, India’s largest iron ore mines rolled over prices for Jun’17 Deliveries. However, Odisha based miners yet to open prices for the same duration.
– Pellet: With higher realization in the exports the domestic pellet offers also strengthen in East India. Currently Indian pellet export offers are assessed at USD 85/MT, CFR China.
– Coking Coal: With surplus supply of coking coal in the market, prices registered a sharp fall by USD 11/MT to USD 155/MT CFR India.
– Semis Market Highlights: Billet offers showed positive trend on improved domestic demand. The offers inched up about (average of) INR 400/MT in a week. Billet export offers were around USD 400-410/MT, which are achievable as of now.
– Finish Steel Market: Despite subdued demand in re-bars the offers gain marginally. Also, overall production of rebars has declined these days due to monsoon in the country. According to analysis, long steel prices have only not weakened because of lowering production.
The flat steel makers have slashed their offers for domestic buyers by INR 1,000/MT in trade market due to lessen demand. SteelMint has spoke to few exporters; who have indicated that the prices might further go down as the stockiest booked the imported material at USD 440-490/MT CFR India from Japan, South Korea and China.
– Impact of GST: Domestic finish steel markets has also started to liquidate the current inventories and are reluctant to purchase new stock as it seems risky for them since the effect of GST in Indian steel market is still awaited.
Raw material and Finish Steel prices as on Week 23 ( till 03 Jun)
|
Products |
Markets |
Taxes |
Prices in INR/MT |
W-o-W |
| Pellet Fe 63%, 6-20 mm |
Ex-Barbil |
ED 12.5%, VAT/CST Extra |
3,800 |
+250 |
| Iron ore Fe 62%, 5-18 mm |
Joda loaded to wagon |
Incld Royalty, DMF & NMET |
3,650 |
0 |
| Coking Coal, Premium HCC |
CNF India |
Prices in USD |
155 |
-11 |
| Scrap HMS (80:20) |
Ex-Mumbai |
ED 12.5%, VAT/CST Extra |
21,300 |
+300 |
| C-DRI 80 FeM |
Ex-Raipur |
ED 12.5%, VAT/CST Extra |
16,100 |
0 |
| P-DRI 80 FeM |
Ex-Raipur |
ED 12.5%, VAT/CST Extra |
14,500 |
0 |
| Pig iron Steel grade |
Ex-Raipur |
ED 12.5%, VAT/CST Extra |
22,600 |
-100 |
| Billet 125*125 MM |
Ex-Raipur |
ED 12.5%, VAT/CST Extra |
25,700 |
+400 |
| Rebar (12mm) |
Ex-Raipur( Medium Scale) |
ED 12.5%, VAT/CST Extra |
29,800 |
+400 |
|
Ex-Mumbai( Large Scale) |
ED 12.5%, VAT/CST Extra |
35,600 |
0 |
|
| HRC (2.5-8 mm) |
Ex-Mumbai |
Incld ED 12.5%, VAT/CST Extra |
38,000 |
-1,000 |
| CRC(0.90mm) |
Ex-Mumbai |
Incld ED 12.5%, VAT/CST Extra |
46,000 |
0 |
| HR Plate(5-10mm) |
Ex-Mumbai |
Incld ED 12.5%, VAT/CST Extra |
39,000 |
0 |
| Wire Rod (5.5 mm) |
Ex-Raipur |
ED 12.5%, VAT/CST Extra |
30,300 |
+900 |
| Structure ( 40 Angle) |
Ex-Mumbai |
ED 12.5%, VAT/CST Extra |
31,000 |
+200 |
Sources SteelMint Research
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