During the third week (15-21 Jan) of 2018, domestic Iron and steel offers remained volatile due to subdued trade activities.
In these days Indian Semis offers decline by INR 400-1,200/MT (USD 6-19), while finish long steel – rebar market registered price volatility by INR 400-800/MT (USD 6-13). Meanwhile, the Flat products prices increased by INR 500-700/MT(USD 7-11) in the week.
Raw Material: Odisha Mining Corporation (OMC) auction has received overwhelming response with entire offered quantity receiving bids. For Gandhamardan and Koira mines, bids received were up INR 800-1,150/MT against base price. However for Daitari mines, bids moved up marginally by INR 50/MT.
Recent mine closure in Odisha hearing was scheduled on 17 Jan’18 at the Apex Court. It has been postponed and likely to be listed on 30 Jan’18.
After witnessing a sharp hike in past few weeks, central India pellet offers remained unaltered this week. Major pellet makers in Raipur are heard giving offers in the range of INR 7,200/MT (ex-works, GST extra). Central India based market sources shared that buying interest in pellets has slowed down as few sponge manufacturers are seen preferring NMDC lumps. Southern India (Bellary) based pellet manufacturers have maintained offers stable this week amid good demand and firm P-DRI prices.
Following sharp price drop in Turkish imported scrap prices, Indian imported scrap offers moved down by around USD 5-10/MT on W-o-W basis. Offers from Europe and USA for Shredded scrap in containers assessed at USD 370-375/MT, CFR Nhava Sheva. While HMS 1&2 (80:20) in containers offered at around USD 340-345/MT from USA/Europe and HMS offers heard at USD 330-335/MT from Middle East. Most of the participants remained seeking for further price drop amid limited trade deals reported in Indian imported scrap market this week.
Coking Coal: With the resumption of coal mining in Australia after the New Year holidays and the buyers halting purchases, amid expectations of the prices coming down; the Australian Coking Coal sellers have found no other option but to lower their export offers. There is sufficient indication of the prices to fall further in the coming days, as expectation among the major buyers is below USD 200/MT. The spot price of the Premium HCC were assessed lower at around USD 236.50/MT FoB Australia.
Semi Finished market fall further in a week’s duration, domestic Sponge offers down by INR 400-700/MT & Billet offers fall in the range of INR 400-1,200/MT. In these period major fall in billet seen in Mumbai, Western India due to limited inquiries resulting continues price decline.
However, Pig iron prices were unaltered with marginal fluctuation of INR 200-400/MT. According to private pig iron producers demand was subdued due to volatility in billet prices.
— Indian sponge iron export offers slightly decline by USD 5/MT (W-o-W). The latest offers are assessed at USD 390-395/MT CPT Benapole (land port of India & Bangladesh).
— Rashtriya Ispat Nigam Limited (RINL), also known as Vizag Steel is a Navratna has issued a tender for export of 10,000 MT billet, 20,000 MT Blooms, 10,000 MT Rounds, 3,000 MT Angles and 2,000 MT Beams.
— In the week, Jindal Steel raised offers by INR 500/MT and offers granulated Pig iron (panther shots) at INR 27,000/MT and Pooled iron at INR 26,000/MT, ex-Angul, Odisha.
— Tata Metaliks has again increased foundry grade pig iron prices by INR 300/MT in last week. The latest offers are hovering at INR 30,500/MT, ex-Kharagpur, East India.
— SteelMint’s pig iron export price assessment stood at USD 385-390/MT FoB India, USD 365-370/MT FoB Brazil and USD 360-370/MT FoB Black sea.
Long Steel Fluctuates: As per week analysis, Market noticed high volatile scenario so the trade activities has been absorbed along with some amendments as price range went through tortuosity way and market participants assume that they will get rid of this twisted direction and demand will pass through with slightly relish mode.
— Vizag Steel has further increased Semis & long steel prices by INR 500-1,000/MT (USD 8-15) w.e.f. 18th Jan 2018. The offers increase for Wire Rod by INR 750/MT, Structure by INR 1,000/MT, Re-bars by INR 1,000/MT, Billet by INR 500/MT & Pig Iron by INR 500/MT.
— The current offer prices for 12 mm rebar are assessed – at INR 36,200-36,400/MT Ex-Raipur, INR 36,000-36,200/MT Ex-Durgapur, INR 38,500-38,600/MT Ex-Mumbai & Raipur based wire rod manufacturers have decreased discount level by around INR 400-500/MT from INR 1,500/MT.
Flat Steel Offers Rise Further: SAIL increased domestic flat steel prices by INR 700/MT w.e.f 17 Jan’18. However, currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 42,500-43,000/MT (ex-Mumbai), INR 43,000-43,500/MT (ex-Delhi),INR 43,500-700/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18%. Prices are likley to move up further in Feb amid supply constrains.
As per sources, Indian steel mills are heard to offer to Europe HRC at around USD 670/MT, CFR which is equivalent to USD 630-635/MT, FoB India.
Indian Raw material and Finished Steel reference Prices as on 20 Jan 2018 (Week 03)
| 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 | 6,500 | 0 |
| Iron ore Fe 62%, 10-30 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET, GST at 5%Extra | 5,450 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 249 | – 25 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 23,500 | – 200 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 21,600 | – 500 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 20,300 | – 700 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 28,500 | 0 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 32,500 | – 800 |
| Rebar (12mm) | Ex-Raipur (Medium Scale) | GST at 18% Extra | 36,200 | – 400 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 38,200 | – 400 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 38,400 | – 200 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 42,800 | + 300 |
| CRC (0.90mm) | Ex-Mumbai | GST at 18% Extra | 46,500 | 0 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 42,500 | + 500 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices as on 20th Jan’18
| Commodity | Size and Grade | Prices | 1W | 1M |
| Pellet | Fe 64% | 106 | 106 | 105 |
| Billet | 150*150 mm | 530 | 535 | 510 |
| Pig Iron | Steel Grade | 390 | 374 | 348 |
| HRC | 2.5-8mm, IS 2062 | 610 | 595 | 575 |
Prices in USD/MT
Source: SteelMint Research
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