In the Week-47 (13-19 Nov), Indian Steel market remained on positive direction in line with some shortage in the semis products and rally in the global steel prices which influenced domestic semis and long steel prices to move upwards.
During the week, prices of semis & finished steel products rise approximately INR 1,000-1,500/MT (USD 15-23) in across major Indian markets.However, the Flat steel offers remain unaltered consecutively since couple of weeks.
Raw Material: Indian steel mills raise inquiries for imported South African lump. Falling seaborne lump market has resulted in decline in spot lump premium to USD 0.195/MT, CFR China. Now the offers have come down to USD 80-83/MT CFR, India for December loading. Gujarat based steel mills have heard to booked a vessel of around 70,000 MT South African Kumba lump and some more vessels are in pipeline.
Week 47 has witnessed price stability in Indian domestic market. Pellet manufacturers across all major Indian markets continue to hold same offers as of now as they were prevailing last week.
Imported scrap offers to India remained nearly firm this week, bookings are expected to resume back in near terms owing to very low inventories left with steelmakers. Few offers heard slightly up over strong domestic steel markets by USD 3-5/MT on W-o-W basis.
Offers for Shredded scrap in containers assessed for both UK and Europe around USD 332-335/MT, CFR Nhava Sheva. Offers for P&S at USD 340/MT and for Turnings around USD 285/MT, CFR India.
Offers for HMS 1&2 (80:20) in containers for Dubai origin assessed at USD 305-310/MT, CFR Nhava Sheva. Domestic scrap remains a preference over the gap of USD 15/MT still persists between domestic and landed cost for imported scrap by Indian scrap buyers.
Coking Coal : Coking Coal prices in Australia have maintained the upward trend due to the impact of limited cargoes available for exports this year, and delays at the DBCT – one of the main coal handling port terminals in Australia. Moreover, buoyant demand from non-Chinese steel makers also contributed to the price uptick. Spot price of the Premium HCC were assessed at around USD 189.25/MT FoB Australia.
Semi finished steel market showed improvement on weekly basis, domestic sponge & billet prices moved up by INR 800-1,400/MT (USD 12-22) owing to good demand & improved domestic inquiries.
– Indian sponge iron export offers to Bangladesh have dropped by about USD 5/MT this week due to limited buying interest. Current offers are assessed at USD 310-315/MT CPT Benapole (land port of Bangladesh and India) & USD 325-330/MT CFR Chittagong port
– In the week duration, the Indian Billet export market remains inactive. And a Govt. owned steel maker had floated a tender for export of 10,000 MT billets of 150*150 mm. As per sources, the tender received no bids
– SAIL’s Rourkela Steel Plant (RSP) tender held on 16th Nov to sell about 4,000 MT steel grade pig on 16th Nov’17. In the auction the company had received average response at the base price of INR 22,900/MT (ex-plant).
Finish-Long Steel : In a week’s duration, the long steel manufacturers increased their offers by INR 1,000-1,500/MT (USD 15-23). And the major price rise in Rebar seen in Western region by INR 1,200-1,500/MT (USD 18-23). Inline Structure and Wire rod offers, the offers increase upto INR 1,000/MT (USD 15) over strong demand. However, no major price movement seen by Large players in the same duration.
Flat Steel Market : Indian flat steel market continued to remain stagnant this week owing to gloomy demand prevailing in domestic market. Traders and manufacturers are offering the prices which is similar to previous week price levels.
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).
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),nd INR 43,500-44,000/MT (ex-Mumbai).
Also,Indian HRC export offers remain unchanged. According to the latest assessment, Indian HRC export offers are heard around USD 540-545/MT, FoB India. Indian steel mills are heard offering HRC at USD 550-560/MT, CFR Vietnam.
Indian Raw material and Finished Steel reference Prices as on 18 Nov (Week 47)
| 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 | 202 | + 8 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 21,400 | + 600 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 18,750 | + 950 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 17,500 | + 1,050 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 25,000 | 0 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 27,500 | + 850 |
| Rebar (12mm) | Ex-Raipur (Medium Scale) | GST at 18% Extra | 30,400 | + 1,000 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 31,850 | + 950 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 32,400 | + 1,200 |
| 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 | 0 |
| 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 | 112 | 106 |
| Billet | 150*150 mm | 455 | 473 | 490 |
| Pig Iron | Steel Grade | 330 | 330 | 368 |
| HRC | 2.5-8mm, IS 2062 | 550 | 560 | 570 |
Source: SteelMint Research
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