During June, Indian Steel Market remained moderate over subdued demand with gradual increase in exports inquiries.
In the initial days of the month the large producers have reduced rebar prices by INR 1,000-1,500/MT (USD 15-23). Similarly, the medium/small scale producers also slashed their prices approx INR 1,000/MT in the same time period.
Flat steel prices in trade market also registered a sharp fall by INR 1,000-1,500/MT in Jun’17 due to the cheaper imported cargoes landing on Indian Ports.
Iron Ore: Merchant miners in Odisha, India’s largest iron ore producing state, cut their prices by INR 100-500/MT in Jun’17. State owned and India’s largest iron ore miner NMDC had rolled over its prices for June despite low off-take.
Pellets: Indian pellet market was supported by rising exports and moderate demand by domestic sponge producers. In June, Chinese steel mills had raised Indian pellet purchases due to a surge in lump premium in the country.
Coking Coal: The coal offers have remained down as supply from Australian ports become healthier. The current offers are gauged around USD 156-158/MT, CNF India. Indian Steel Makers continue to book shipments in these competitive offers.
Billets: Initial days the billet market trend remained down tick as there was bearish demand in finished steel products. There were multiple export tenders issued by Indian manufacturers on appreciated rupee and improved viability for Nepal and Bangladesh.
Scrap: Appreciation in Indian Rupee against USD made scrap imports to India cheaper. Thus Indian importers actively booked bulk scrap import vessels in May’17 for Jun/Jul’17 shipments. Around 3 bulk vessels were reported on Indian ports for Jun’17. At the same time containerized scrap trade has reduced substantially owing to higher container freight cost.
Pig Iron: Indian pig Iron offers slashed sharply around INR 3,000-3,500/MT across the country due to weak demand globally. India’s state owned largest pig iron manufacturer- Neelachal Ispat cut the offers thrice in the month of Jun’17 by INR 1,400/MT.
Further Vedanta Resources based in west cost of India has exported a bulk vessel of 37,000 MT pig iron to Taiwan. The deal price for the material was reported by the sources around USD 305-310/MT, FoB.
Long Steel: Long steel offers reeled under pressure from start of the month due to weak demand which gradually improved with approaching end as the stockiest were under pressure to clear the stock before the GST implementation.
Flat Steel: HRC domestic offers corrected in Jun’17 due to gloomy market sentiments as traders/stockiest have been trying to liquidate stocks due to GST.
The export offers for HRC increased by USD 10/MT as demand of Indian cargoes increased owing to rise in Chinese export offers, last deal heard to Vietnam around USD 470-475/MT, FoB India.
Monthly Average Prices – Jun’17 Vs May’17
| Products | Markets | Prices in INR/MT | M-o-M | |
| Jun’17 | May’17 | |||
| Pellet Fe 63%, 6-20 mm | Ex-Barbil | 3,800 | 3,940 | -140 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 3,740 | 4,100 | -360 |
| Coaking Coal, Premium HCC | CNF India | 157 | 198 | -41 |
| Scrap HMS (80:20) | Ex-Mumbai | 20,650 | 21,100 | -450 |
| C-DRI 80 FeM | Ex-Raipur | 15,950 | 16,300 | -350 |
| P-DRI 80 FeM | Ex-Raipur | 14,400 | 14,800 | -400 |
| Pig iron Steel grade | Ex-Raipur | 20,100 | 24,100 | -4,000 |
| Billet 125*125 MM | Ex-Mumbai | 26,700 | 26,900 | -200 |
| Rebar (12mm) | Ex-Mumbai( Medium Scale) | 30,300 | 31,100 | -800 |
| Ex-Mumbai( Large Scale) | 33,500 | 35,100 | -1,600 | |
| HRC (2.5-8 mm) | Ex-Mumbai | 33,700 | 34,600 | -900 |
| CRC(0.90mm) | Ex-Mumbai | 39,400 | 40,500 | -1,100 |
| HR Plate(5-10mm) | Ex-Mumbai | 34,100 | 34,100 | 0 |
| Wire Rod (5.5 mm) | Ex-Raipur | 29,800 | 29,500 | +300 |
| Structure ( 40 Angle) | Ex-Mumbai | 30,900 | 31,400 | -500 |
Iron Ore offers are Incld Royalty, DMF & NMET
Basic prices in INR/MT
Source: SteelMint Research
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