Indian Steel Market Highlights, Week 51

During the week-51 (11-17 Dec’17), Indian iron & steel prices moved up sharply in the range of INR 500-1,500/MT (USD 8-23).

The prices increase in line with strong demand globally and couple with shortage of Semis material & rising raw material prices.

Raw Material: Odisha major merchant miners raised lump prices by INR 400/MT and fines prices by INR 200/MT. SC did not gave any extension to the miners in regards of deadline for submission of penalty amount. The deadline remains unchanged at 31 Dec’17. SC raised iron ore mining cap from 30 MnT pa to 35 MnT pa.

Central India pellet offers moved up from INR 6,000/MT to INR 6,500/MT (ex-Raipur)

Imported scrap offers to India climbed slightly further for HMS 1&2 (80:20) and remained firm for Shredded scrap on W-o-W basis.This week very less buying interest witnessed in the market as offers are still at high levels than expected working range. Offers for from US and Europe for Shredded in containers assessed at USD 355-360/MT and HMS 1&2 (80:20) from Dubai assessed at USD 330/MT, CFR Nhava Sheva respectively. Offers from Dubai & African countries are little workable at the moment but most of the Indian steelmakers are either shifting to DRI/Sponge or preferring domestic scrap presently.

Coking Coal: Coking Coal spot prices have continued to traverse upwards, being driven by supply tightness and robust demand. Supplies have become tight as there was no incremental production before the winter holidays in Australia, to commence from 20Dec’17; on the other hand, stronger demand has prevailed due to the stocking spree among the steel makers ahead of the winter holidays. Spot prices of the Premium HCC were assessed higher at around USD 236.50/MT FoB Australia.

Semi finished steel market showed improvement on weekly basis, domestic sponge & billet prices moved up by INR 800-1,600/MT owing to good demand & improved domestic inquiries.

Domestic pig iron prices also increase by INR 500-800/MT (USD 8-12) following price rise in billets and higher coal & iron ore prices.

Few weekly trade hightlights:-

– Indian sponge iron export offers to Bangladesh moved up by USD 10-15/MT during last week & stood at around USD 345-350/MT; CPT Benapole (land port of Bangladesh and India).

– NINL, India’s largest steel grade pig iron manufacturer has increased pig iron prices for both steel & foundry grade by INR 500/MT (USD 8).

– Tata Metaliks, one of the largest foundry grade pig iron manufacturer has raised its prices by INR 800/MT (USD 13) to INR 29,000/MT ex-plant, Kharagapur, East India.

– In latest update according to Vessel line up data maintained by SteelMint stats, an Pig iron export Vessel recorded of Vedanta Resources from Murmugao port of around 30,000 MT.

– SteelMint’s Pig iron export price assessment for basic grade in current week stood at USD 345-350/MT, up by USD 5/MT compared to last week at USD 340-345/MT, FoB India.

– Indian 40,000 MT Billet export tender receives high bid to USD 500/MT FOB India owing to rise in global markets. Prior, to this the tender was concluded at USD 460-465/MT FoB for South East Asia.

– Indian billet export price assessment by SteelMint has moved up this week at USD 490-500/MT against last week at USD 480-490/MT, FoB India.

Finish-Long Steel: Indian domestic rebar market has been developed since the start of month and this week prices further increase by INR 700-1,700/MT in all regions.

The current offer prices for 12 mm rebar are assessed – at INR 32,500-32,700/MT Ex-Raipur, INR 32,200-32,400/MT Ex-Durgapur, INR 35,300-36,000/MT Ex-Delhi, INR 35,100/MT Ex-Mumbai and INR 35,000-35,500/MT Ex-Chennai.

Indian primary producers surge the prices with INR 500-1,000/MT and same price range has been elongated in the beginning of Dec’17.

– Durgapur, East India based mills have concluded Wire rod export deals to Nepal at around USD 530-535/MT (ex-mill), trade participants report to SteelMint.

Flat Steel Market :This week domestic flat steel market was filled with optimistic sentiments after the hike in Indian flat steel prices by major manufacturers by INR 500-1000/MT in the start of the month over higher raw material cost.

Market participants mentioned that trade activities remained active and demand has also shown slight improvement in domestic market.

Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 40,000/MT (ex-Chennai),INR 39,600 40,000/MT (ex-Mumbai) and INR 40,000-40,300/MT (ex-Delhi).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 44,500-45,000/MT (ex-Chennai) ,INR 43,500/MT (ex-Mumbai) and INR 43,500-45,000/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST @ 18%.

Positive buying and bullish sentiments has resultant to up-trend in domestic flat steel prices.

Indian Raw material and Finished Steel reference Prices as on 16 Dec (Week 51)

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

Indian Export Reference Prices

Source: SteelMint Research