Indian Steel market remained on positive direction in line with shortage of semi finished and rally in the global steel prices which influenced domestic Semis and Flat steel prices to move upwards.
Meanwhile, long steel offers i.e specifically rebars reeled under pressure owing to seasonal weak demand in the domestic market.
Raw Material: Indian private miner like Serrajudin Mines reduced the iron ore offers by INR 100/MT owing to seasonal slow off take.
Whereas the Indian pellet offers remained uptick (INR 100-400/MT, W-o-W) owing to strong demand from the domestic sponge producers and boost in exports. The Chinese steel makers have raised inquiries for Indian made pellets owing to good demand for lump & pellets in Chinese domestic market and due to rally in coking coal prices.
Indian domestic scrap offers also moved up as there was shortage of the material in the domestic market. Hence, now Indian steel mills have resumed bookings of imported scrap. Another reason behind rising interest towards imported scrap is costlier coal as it becomes cost effective to use scrap as raw material.
Coking Coal Rise Further: Aggressive purchasing of material by the China and other steel makers pulled the price upwards. The prices moved up by USD 9/MT to USD 189/MT CNF India.
Exports from India pushed Domestic Semis Offers Upwards: Semis (Billet and sponge) offers rose up to INR 1,000/MT (USD 15) in a week’s duration owing to favorable demand in the domestic market as well as good export realization.
Billet export prices from India have increased significantly over the past two weeks. Multiple tenders by the Steel giants have been concluded:
– Vizag Steel billet export tender for 90*90mm has been concluded at increase price by USD 14/MT to USD 448/MT on FoB Basis.
– SAIL’s 150*150mm billet tender of 15,000 MT is about to get concluded in coming week, according to the trade participants.
Long Offers Marked volatility: The rebar prices remained stagnant because of poor demand, on account of the heavy rains in most parts of the country. While, in some regions like South India offers moved up sharply by INR 700/MT on account of rise in semis offers.
MS Wire and Structure offers remained positive due to good demand, as monsoon is the peak time for trades in these commodities rather than the rebars. The offers in structure rose around INR 200-600/MT in major regions while the wire offers surged by INR 600/MT.
Interestingly, the long steel exports have seen a positive trend from the South East Asian countries and US. Few long steel export deals have been concluded like – Vizag steel exported 10,000 MT re-bar which is likely to be shipped to the US and SAIL concluded 5,000 MT Wire export deal. Few export deals are in line and likely to be concluded in coming times.
Flat Steel Offers are waiting for Sharp hike in August’17: In a week’s duration, the offers rose around INR 500/MT in flat steel.
Further the Flat steel makers are planning to hike their domestic offers by INR 1,000-1,500/MT for August deliveries owing to good demand. Rising global prices has turned imports costlier providing room to domestic steel makers to raise offers.
The Indian Flat Steel export offers also increased as in the fresh analysis of HR plates offers moved up to USD 435-450/MT, FoB India. A deal for 30,000 MT was concluded recently at USD 475-490/MT, CFR Europe. Other flat steel offers like HRC and CRC are likely to increase in near term.
Domestic Raw Material and Finish Steel Reference Prices as on 29 Jul’17 ( Week 31)
| 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 | 4,150 | 50 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET, GST at 5%Extra | 3,150 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 189 | 9 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 20,300 | 800 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 17,400 | 600 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 16,400 | 900 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 23,700 | 700 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 26,300 | 300 |
| Rebar (12mm) | Ex-Raipur(Medium Scale) | GST at 18% Extra | 29,000 | 0 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 31,100 | 600 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 31,600 | 400 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 36,000 | 500 |
| CRC(0.90mm) | Ex-Mumbai | GST at 18% Extra | 39,800 | 800 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 36,000 | 500 |
Indian Export Reference Prices
| Commodity | Size and Grade | Prices | 1W |
| Pellet | Fe 64% | 90-91 | 89-90 |
| Billet | 150*150 mm | 445-455 | 430-435 |
| Pig Iron | Steel Grade | 330-340 | 315-320 |
| HRC | 2.5-8mm, IS 2062 | 515-520 | 510-515 |
Export Offers in USD/MT
Source: SteelMint Research
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