In the Week-50 (04-10 Dec’17), Indian Iron & Steel market were quite uncertain amid volatility in trade activities. During the week prices of Semis & Finished long steel decline slightly around INR 500/MT (USD 8). However, the flat steel offers increased by INR 500-1,000/MT (USD 8-15).
Raw Material: OMC iron ore e-auction conducted on 6 Dec’17 fetched good response with 90% of the material getting booked. For majority of the lots booked, bids prices remained higher up to INR 200/MT while for few lots bid prices remained close to base price.
– NMDC increased iron ore floor price for Dec’17 Karnataka e-auctions by INR 200-300/MT
– Odisha govt extended validity of Serajuddin Mines in Odisha
– West India (Rajasthan) based pellet maker – Jindal SAW raised pellet prices by INR 300/MT. Current offers for Fe 63% grade pellets have moved up to INR 6,700/MT (delivered Kandla) against previous assessment of INR 6,400/MT.
Following global trend this week imported scrap offers to India moved up further by USD 5-10/MT on weekly basis. Buying interest remained still at quite lower levels than global price levels. While limited offers heard as most of the suppliers are already almost sold out. Offers for Shredded and HMS 1&2 (80:20) in containers assessed from UK increased to USD 355/MT and USD 325/MT, CFR Nhava Sheva respectively.
Coking Coal: Conforming to the expectations, Coking Coal prices continued to move northwards, being driven by stronger demand and supply tightness. Demand was stronger due to the stocking spree among the steel makers ahead of the winter holidays to begin from 20 Dec’17 in Australia. On the other hand, the availability of cargoes before the holidays are dwindling as there is no incremental production before the holidays. Spot prices of the Premium HCC have gone up around USD 13-15/MT to USD 219.75/MT FoB Australia.
Semi-Finished: Indian Semis – Sponge & Billet prices fall in the week-50 by INR 200-700/MT (USD 3-11) on uncertainty in the domestic market.
– SteelMInt’s sponge iron export price assessment stood at USD 335-340/MT against last week at USD 330-335/MT; CPT Benapole (land port of India & Bangladesh)
– Vizag Steel had issued a tender for export of 15,000 MT billet (90*90mm) for delivery scheduled by Dec-end. As per the sources, the tender was concluded at USD 465/MT, FoB India. The company’s export tender for Nepal also get sold – billet at USD 460/MT & Wire rod at USD 525/MT (ex-Mill).
In the week, the private producers has kept pig iron offers stable over sluggishness in billet spot trades.
– In the week, NINL offers small quantity of pig iron at around INR 23,800/MT ex plant, Odisha. Plant is closed due to maintenance. While on recent MMTC (on behalf of NINL) has floated a export tender of 6,000 MT non-alloy Pig Iron on behalf of NINL. The due date for submission of bids is 14:30 hrs on 15 Dec’17.
– SteelMint’s assessment for non-alloy steel grade pig iron is assessed at USD 345-350/MT FOB, which was USD 335-340/MT FOB last week.
Finish Long Steel: Indian major market seems volatile in rebar offers owing to limited demand. Meanwhile, in South region the producers raise prices by INR 400-500/MT following rise in raw material prices also due to the better export realisations particularly for far east – Myanmar, Cambodia & Philippines.
Export wise, rebar offers are heard to be in the range of USD 550-560/MT CFR South East Asia. Although negotiations are under table and deals yet to take places, as per market sources.
Flat Steel Market: Indian mills have increased flat steel prices by INR 500-1,000/MT for December deliveries on account of higher raw material cost. Rise in domestic iron ore prices and imported coking coal offers has resulted to hike in flat steel prices in domestic market.
As per SteelMint assessment current trade reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 44,500-45,000/MT (ex-Chennai),INR 43,500/MT (ex-Delhi) and INR 43,500/MT (ex-Mumbai).The prices mentioned above are basic prices excluding GST @ 18%.
Indian plate prices also witness prices rise in domestic market.Presently plate prices in major markets are at INR 38,000/MT (ex-Delhi and ex-Mumbai).The prices mentioned are basic prices excluding GST @ 18%.
Indian Raw material and Finished Steel reference Prices as on 9 Dec (Week 50)
| 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 | 5,400 | +225 |
| Iron ore Fe 62%, 10-30 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET, GST at 5%Extra | 4,150 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 233 | +20 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 22,000 | -400 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 19,600 | -600 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 18,600 | -300 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 25,000 | -100 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 28,600 | -100 |
| Rebar (12mm) | Ex-Raipur (Medium Scale) | GST at 18% Extra | 31,300 | -400 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 33,100 | +200 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 34,200 | +550 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 39,500 | +1,000 |
| CRC (0.90mm) | Ex-Mumbai | GST at 18% Extra | 43,500 | +500 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 38,000 | +1,000 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices
| Commodity | Size and Grade | Prices | 1W | 1M |
| Pellet | Fe 64% | 105 | 107 | 112 |
| Billet | 150*150 mm | 485 | 460 | 473 |
| Pig Iron | Steel Grade | 348 | 338 | 330 |
| HRC | 2.5-8mm, IS 2062 | 545 | 545 | 560 |
Source: SteelMint Research
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