Indian steel market moved downwards in week-45 (6-12 Nov) as domestic long and semis market registered price fall of INR 200-600/MT (USD 3-9), W-o-W. However, the Flat steel offers remain unaltered consecutively since couple of weeks.
Raw Material: Odisha Mining Corporation (OMC), a state-owned miner conducted e-auction on 7 Nov’17 for 490,000 MT iron ore fines. According to market sources report to SteelMint, the e-auction fetched good response with 61% of the material receiving bids. Bids remained closed to base price. Vizag Steel participated in the e-auction and bid for 80,000 MT iron ore fines offered from Daitari mines.
Domestic pellet offers remain supported amid high export prices. Bhilwara (Rajasthan) based pellet maker – Jindal SAW increased its pellet offers by INR 200/MT. Latest offers for Fe 63% grade pellets are at INR 6,400/MT (delivered Kandla) against previous assessment of INR 6,200/MT (delivered Kandla).
Imported scrap offers to India remained mostly stable this week and are reported at USD 335/MT for Shredded grade UK origin. Although not significant buying interest was seen from importers end.
Coking Coal: Coking Coal prices have recently shown marginal uptick, due to the demand becoming stronger on account of the spurt in buying by non-Chinese steel makers. Nevertheless, the demand from steel makers in China has waned as the 50% steel production cut in that country will take effect from the next week. The rise in the coal imports by the non-Chinese buyers has lifted the spot prices of the Premium HCC to around USD 181.50/MT FoB Australia.
Semis Finished Steel: In the week, Billet & Sponge market trends marked down tick as the prices plunged by INR 200-600/MT due to limited inquiries from rolling mills following poor off take in long steel products.
However, domestic pig iron offers registered price rise of around INR 500/MT (USD 8) on improved demand from Inductions and the demand was majorly picked in East Region.
– JSW Steel, India’s largest private steel producer has reduced gas based DRI prices by INR 500/MT (USD 8). The latest offers are heard at INR 18,000-18,500/MT (USD 278-287) ex-Dolvi, Maharashtra.
– Indian sponge iron export offers remains firm in week 46 over weak buying interest. Prior to this during last week (week 45) the offers were increased by USD 5-10/MT owing to rise in transportation cost.
– Vizag Steel, also known as RINL has reduced Steel grade Pig iron prices by INR 1,000/MT (USD 15) and the latest offers are assessed at INR 24,300/MT (USD 377) ex-plant & excluding GST.
– MMTC’s pig iron export tender of 15,000 MT on behalf of NINL had expired on 08 Nov’17 and according to market participants the tender was received poor response.
Finish Long Steel Market: With decline in semis market, long steel offers reeled under pressure & offers in domestic market have come down by almost INR 500/MT(USD 8) in the week over poor inquiries from stockiest and end user segment.
– In the week duration, Rebar offers by the large producers namely, SAIL (Steel Authority of India) & JSW Steel are heard at INR 33,500-34,500/MT ex-Mumbai for grade 550D & for 12-25mm.
– Domestic Wire rod & Structure offers for light size down approximately INR 200-500/MT (USD 3-8).
Flat Steel Market: This week Indian flat steel market remained dull and pessimistic over sluggish demand and lower sales volumes prevails in domestic market. Major Indian steel manufacturers are continuing with the same prices for Nov’17. However in traders market flat steel prices have increased marginally by INR 500/MT since last week with deals getting concluded at increased price.
Currently, trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 38,500-39,000/MT (ex-Delhi) and INR 39,000-39,500/MT (ex-Mumbai).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 44,000/MT (ex-Delhi) and INR 43,500-44,000/MT (ex-Mumbai).The prices mentioned above are basic prices excluding GST @ 18%.
In context to exports, Indian HRC export offers have moved down by USD 10-15/MT amid weakening offers in global market. According to the latest assessment, Indian HRC export offers are heard around USD 540-545/MT, FoB India against previous assessment of USD 555-560/MT, FoB.
Indian Raw material and Finished Steel reference Prices as on 11 Nov (Week 46)
| 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 | 4,900 | 0 |
| Iron ore Fe 62%, 10-30 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET, GST at 5%Extra | 3,750 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 196 | +1 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 20,800 | 0 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 17,800 | -250 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 16,450 | -200 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 25,000 | +467 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 26,600 | -400 |
| Rebar (12mm) | Ex-Raipur (Medium Scale) | GST at 18% Extra | 29,400 | -400 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 30,900 | -500 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 31,300 | -150 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 39,000 | 0 |
| CRC (0.90mm) | Ex-Mumbai | GST at 18% Extra | 44,000 | +500 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 37,500 | 0 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices
| Commodity | Size and Grade | Prices | 1W | 1M |
| Pellet | Fe 64% | 112 | 110 | 102 |
| Billet | 150*150 mm | 473 | 473 | 498 |
| Pig Iron | Steel Grade | 330 | 335 | 365 |
| HRC | 2.5-8mm, IS 2062 | 560 | 560 | 565 |
Source: SteelMint Research
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