Indian steel market moved upwards in week 26 (19-24 Jun’17), majorly in Semis and long products. However there was stability in flat steel offers due to bearish demand amid rising imports.
During the week, domestic semis (Sponge & Billet) offers moved up by INR 500/MT (USD 8). While, finish long steels (Rebar & Structure) offers surge by INR 200-1,200/MT (USD 3-19), W-o-W.
Raw Material: Iron ore offers reeled under pressure as the two major private miners Serajuddin and Indrani Patnaik mines slashed their offers upto INR 400/MT and INR 250/MT, respectively. Although, NMDC – India’s largest State owed iron ore mines kept the offers unaltered for Jun’17.
India has been aggressively importing scrap and two more bulk vessels are expected on Indian ports of 33,000 MT and 32,030 MT (shredded scrap) from USA. Current offers for imported scrap are assessed around USD 295-300/MT, CFR India. Around 128,110 MT arrived at Indian port in CY17 (till 21 Jun’17).
Coking Coal Offers: The Coking Coal price fall has exceeded all expectations and registered a sharp fall in spot offers by USD 5/MT with fresh offers at USD 141/MT, FoB Australia which is equivalent to USD 152/MT, CFR India.
Semi Finished Steel Rise Further: Owing to favorable demand in long steels, semis (sponge & billet) offers registered price rise upto INR 500/MT.
Industry participants believe that prices to come under pressure as there is sluggish trends prevailing in the market because of approaching GST & low exports.
The latest billet tenders issued by Indian exporters received weak response. Pig Iron Offers also remained under pressure where the largest pig iron merchant, NINL reduced the offers for the third time in a month by INR 500/MT for both Steel and Foundry grade pig iron. Also, MMTC has cancelled the latest tender of 30,000 MT which they conducted on behalf of NINL on expectation of getting higher bids.
Finish Steel Market: Long steel: rebar offers surge upto INR 1,200/MT (major hike in South) owing to good demand before the approaching GST and monsoon. Also, the structure offers increased amid the good demand from construction sector for heavy structure.
Domestic flat steel market remained quiet and the traders hold their offers firm as they are pessimist about holding the stock because of unclear terms for GST. The flat steel imports jumps by 13% in May’17 to 0.43 MnT.
Indian flat steel exporters also reduced their offer by USD 10/MT to USD 560-570/MT against USD 570/MT for week 25 for CRC; but the HRC export offers remained firm even though global market is downtick.
Raw Material and Finish Steel Reference Prices as on 24th Jun’17 (Week 26)
| Products | Markets | Taxes | Prices in INR/MT | W-o-W |
| Pellet Fe 63%, 6-20 mm | Loaded to wagon | ED 12.5%, VAT/CST Extra | 3,850 | +50 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET | 3,750 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 152 | -5 |
| Scrap HMS (80:20) | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 20,000 | -500 |
| C-DRI 80 FeM | Ex-Raipur | ED 12.5%, VAT/CST Extra | 16,100 | +100 |
| P-DRI 80 FeM | Ex-Raipur | ED 12.5%, VAT/CST Extra | 14,600 | +200 |
| Pig iron Steel grade | Ex-Raipur | ED 12.5%, VAT/CST Extra | 21,800 | -200 |
| Billet 125*125 MM | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 26,900 | +500 |
| Rebar (12mm) | Ex-Mumbai(Medium Scale) | ED 12.5%, VAT/CST Extra | 30,400 | +400 |
| Ex-Mumbai( Large Scale) | ED 12.5%, VAT/CST Extra | 33,500 | 0 | |
| Wire Rod (5.5 mm) | Ex-Raipur | ED 12.5%, VAT/CST Extra | 30,000 | +500 |
| Structure ( 40 Angle) | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 31,000 | +200 |
| HRC (2.5-8 mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 38,500 | 0 |
| CRC(0.90mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 44,500 | -500 |
| HR Plate(5-10mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 39,000 | 0 |
Sources: SteelMint Research
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