Indian Steel Market Highlights, Week 45

During the Week-45 (30th Oct-05th Nov), Indian Steel prices further surge following strong trends in the domestic market. In the week, prices of Semis & Long products increase nearly INR 500-1,000/MT (USD 8-15). However, the Flat steel offers were remain unaltered owing to bearish demand.

Raw Material: NMDC rolled over iron ore prices in Chhattisgarh but increased base prices by about INR 150/MT in Nov’17 Karnataka e-auctions. OMC has scheduled next iron ore fines e-auction on 7 Nov’17 for which it has kept base prices for Gandhamardhan & Koira mines unchanged. However, Daitari iron iron ore fines moved up by INR 100/MT.

– Indian pellet prices moved up by up to INR 300/MT amid improved trade activities. However western India pellet offers observed corrections.

– Imported scrap offers to India rise over strong global demand this week. Thus, offers for both HMS (80:20) and Shredded scrap are moved up by USD 10-15/MT, W-o-W. Meanwhile, with increase offers buying activities remain low by Indian importers.

Offers for Shredded scrap in containers assessed for both UK and Europe around USD 330-335/MT, CFR Nhava Sheva. Offers for HMS 1&2 (80:20) in containers for Dubai origin assessed at USD 305-310/MT, CFR Nhava Sheva.

– With rising imported scrap offers and couple with strong demand & rise in billet prices, Indian domestic scrap prices also rise by INR 200-400/MT W-o-W basis. The gap between domestic and landed cost for imported scrap still persists thus domestic scrap is preferred higher by Indian scrap buyers. Most of the market participants now anticipate offers to remain stable or slightly to lift up further ahead of increasing restocking activities in global market.

Coking Coal: The fall in Coking Coal prices has continued, but another downward price driver also emerged—the increasing supply. Many Coking Coal mines have recently restarted operations in China, after temporary closure due to mine inspections in the recent past. The restart of the mines has increased supply, amidst slackening demand for Coal due to the 50% steel production cut to take place in the third week of this month. Spot prices of the Premium HCC were assessed at around USD 179/MT FoB Australia.

Semi finished steel: The prices of Billet & Sponge were continued on uptrend following strong demand domestically. The prices have increase by INR 500-1,000/M in both the products and the major rise reported in Odisha, Gujarat & in Hyderabad by INR 700-1,000/MT.

– In context to exports, SteelMint’s price assessment for Induction furnace grade billet rise by INR 10/MT (W-o-W) to USD 415-420/MT ex-mill, East India.

– The blast furnace grade billet (150*150mm, IS2830) export offers were almost remained firm at USD 470-4750/MT, FoB India.

Further, Indian domestic pig iron offers increase during the week 45 by INR 500-1,000/MT on significant surge in domestic sponge & billet offers. According to the private pig iron manufacturers with the rise in billet offers demand for pig iron also picked.

– MMTC, India’s largest and state owned trading house on behalf of NINL has floated a export tender for 15,000 MT pig iron which expiring on 08 Nov.

– Neelchal Ispat (NINL), blast furnace maintenance work likely to be start during mid of Nov’17 or from upcoming month, the officials from the company reported.

– In the week, SteelMint’s price assessment for Indian pig iron exports was firm at USD 330-340/MT, FOB India

Finish-Long Steel: Indian Rebar manufacturers increased prices during the week. In a week’s duration the prices were sharply went upwards in the range of INR 800-1,000/MT in almost all locations. Particularly, South region seems having slow demand in finish long though INR 400-500/MT price range has been increased like other locations & executing last month export orders as per market participants. As per market allusion, participants are trying to secure new export orders from Far East like Indonesia & Philippines.

East Region market is supporting high prices of Wire-rod as it has covered more than INR 800-1000/MT by supplying to certain locations & getting better response as expected after festive season.

Flat Steel: Indian flat steel manufacturers have kept flat steel prices stable post Diwali holidays and are continuing with the same prices for Nov’17. Manufacturers are seen offering HRC (IS2062) 2.5 mm-8 mm at INR 39,500-40,000/MT (ex-Mumbai) and INR 44,000-44,500/MT for CRC (IS513) 0.9mm.

Market participants mentioned that stockiest are not able to dispose off the quantities available and weak demand results to unaltered flat steel prices in the domestic market. Although prices in traders market continue to remain lower than that of manufacturers.

Currently, trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 38,500-38,700/MT (ex-Delhi) and INR 39,500/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18%.

As per SteelMint assessment current reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 43,000-44,500/MT (ex-Delhi) and INR 44,500/MT (ex-Chennai).The prices mentioned above are basic prices & excluding GST @ 18%.

Indian Raw material and Finished Steel reference Prices as on 04 Nov (Week 45)

Prices are Ex-works, Exclusive of GST at 18%