During the month, Indian steel prices were on rising mode due to spurt in key raw material prices, strong demand and shortage of Semis products.
The prices of Semi-finished saw an increase of around INR 500-2,000/MT (USD 8-31), Finish long steel by INR 800-1,600/MT (USD 12-25) and the Flat steel (HRC/CRC) by INR 300-600/MT (USD 4-9). The price changes are on monthly average basis – Nov’17 Vs Oct’17.
Iron Ore: India’s largest iron ore producer – NMDC has kept Iron ore prices unchanged for Nov’17 deliveries. However, the miner has increased Iron Ore floor prices for Karnataka Nov’17 E-auctions by about INR 150/MT on monthly basis.
Similarly, Odisha based miners had kept Iron ore prices unchanged till 3rd week of Nov’17. However, in the month end few of the major merchant miners have raised prices by INR 200-400/MT.
– NMDC supplied 204 rakes of iron ore from Chhattisgarh mines in Nov’17, an increase of 6% as against supply in Oct’17 which stood at 192 rakes.
– Rungta Mines exported 0.14 MnT iron ore in Nov’17 and remained the 2nd largest exporter after NMDC.
– NMDC’s rake movement for exports decreased by 13% in Nov’17 to 21 rakes against 24 rakes in Oct’17.
– Indian Iron ore imports increase 39% in Nov’17 on active booking from west based steel mills.
Pellets: Indian pellet offers remain on rise on short supply of domestic Iron ore and couple with strong exports & hike in sponge prices.
– In the month, Central India (Raipur) based pellet manufacturers have raised offers by INR 500-700/MT following hike in pellet sponge (P-DRI) prices. The offers for Fe 63% pellets are assessed at INR 5,300-5,400/MT during first week of Nov’17 which rose to INR 6,000/MT in the month end (ex-Raipur).
– Essar Steel has concluded an export deal of around 50,000 MT pellets to China for end November shipment. As per updates received the deal has been concluded in the first week of Nov’17 around USD 123/MT, CFR China.
Coking Coal: The coal offers continued traversing upwards under the influence of tight availability of cargoes and strong global demand. The offers rise by USD 8-10/MT from first week to last week of the month. The current offers for Premium HCC, Australian coal are around USD 233.15/MT, CNF India.
According to the data compiled by SteelMInt, Indian Non-coking coal imports have increased 7% on the month to 13.77 MnT in Nov’17, compared with 12.89 MnT in Oct’17. The imports have increase in line with higher E-auction prices in domestic market.
Scrap: Indian melting scrap prices surge as global offers skyrocket. The domestic scrap prices increased by INR 1,000-1,500/MT (USD 15-24) in last one month, where as imported scrap prices rose by USD 20-25/MT during the same period. Average prices for imported HMS 80:20 (From UAE) stands at USD 308/MT, CIF Nava Sheva (Mumbai).
HMS 80:20 prices in Turkey, which is the largest importer of scrap, has reached USD 343/MT CFR levels, increase by USD 38/MT as compared to offer prices during Oct’17.
– As per customs data, India imported 0.45 MnT ferrous scrap in Sept’17. The country has witnessed rise by 15% M-o-M against 0.39 MnT ferrous scrap imports in Aug’17. On yearly comparison, imports have shown significant growth by 67% Y-o-Y in Sept’17 against 0.27 MnT ferrous scrap imports in Sept’16.
Semi Finished: Domestic billet and sponge offers continue to surge following healthy demand & short supply in the materials. In a month duration, domestic billet offers rose in the range of INR 800-1,600/MT (USD 12-25) & Sponge by INR 500-2,000/MT (USD 8-31).
– Indian sponge iron export offers also increase about USD 20/MT in Nov’17 on rise in domestic prices & global scrap prices which has imporoved global demand for Indian made sponge iron.
– SteelMint’s price assessment for Indian billet (blast furnace grade & size 90*90mm) exports increase to USD 470-480/MT FoB with the fresh conclude tender by Vizag Steel for 15,000 MT at around USD 465/MT FoB.
Indian private Pig iron manufacturers have further increase prices up to INR 1,000/MT (USD 16) on monthly average basis in Nov’17.
– Vizag Steel’s export tender of 25,000 MT Pig iron which got expired on 21 Nov’17 had conclude at USD 337-338/MT FoB India. Prior to this, Western India based an private pig iron manufacturer had concluded export deal at USD 340/MT, FoB.
– MMTC’s export tender on behalf of NINL for 15,000 MT basic grade pig iron heard to have received poor response due to low participation by global buyers. According to market sources report to SteelMint, the tender fetched bids at around USD 330/MT, FoB.
– In the last week of Nov’17, Neelachal Ispat (NINL) has put blast furnace is on capital maintenance which will take around 2 month’s to resume operations. Meanwhile, the company has opened its domestic offers on available sufficient inventories with them, the official reported.
Long Steel: With spurt in Semis offers & Improved demand, domestic rebar & structure offers also increase by INR 800-1,600/MT (USD 9-19) on monthly average basis. Major price rise reported in Mumbai – West India & Hyderabad -South India for both regions by INR 1,400-1,500/MT.
– The large producers also increase offers by INR 500-1,000/MT (USD 8-16) in the initial days of Nov’17.
– Indian Re-bar & Wire rod exports almost doubled during Jan-Sep 2017 against same period last year due to falling Chinese steel exports. In CY16 (Jan-Sep) the exports recorded at 532,000 MT as compared to same preceding last year at 365,000 MT.
Flat Steel: Indian Flat steel market have remained firm in the month of Nov owing to sluggish demand in the domestic market. Major Indian steelmaker’s have rolled over the flat steel prices for Nov’17 bookings.
On M-o-M in Nov’ 17, Domestic flat steel prices fluctuated by INR 250-550/MT. Also, traders and small enterprises were facing liquidity crunch resulting to lower sales volumes and unaltered prices in the domestic market. Meanwhile, Indian HRC export offers are also unaltered and are hovering at USD 540-545/MT FoB India.
Monthly Average Prices – Nov’17 Vs Oct’17
| Products | Markets | Prices in INR/MT | M-o-M (%) | |
| Nov’17 | Oct’17 | |||
| Pellet Fe 63%, 6-20 mm | Ex-Barbil | 4,980 | 5,050 | -1.39 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 4,180 | 4,100 | +1.95 |
| Coking Coal, Premium HCC | CNF India | 206 | 198 | +4.15 |
| Scrap HMS (80:20) | Ex-Mumbai | 21,100 | 20,200 | +4.46 |
| C-DRI 80 FeM | Ex-Raipur | 18,450 | 16,900 | +9.17 |
| P-DRI 80 FeM | Ex-Raipur | 17,150 | 15,450 | +11.00 |
| Pig iron Steel grade | Ex-Raipur | 24,900 | 24,750 | +0.61 |
| Billet 125*125 MM | Ex-Mumbai | 28,050 | 26,550 | +5.65 |
| Rebar (12mm) | Ex-Mumbai( Medium Scale) | 29,912 | 28,987 | +3.10 |
| Wire Rod (5.5 mm) | Ex-Raipur | 31,404 | 30,578 | +2.70 |
| Structure ( 40 Angle) | Ex-Mumbai | 32,050 | 30,477 | +5.16 |
| HRC (2.5-8 mm) | Ex-Mumbai | 38,750 | 38,500 | +0.65 |
| CRC(0.90mm) | Ex-Mumbai | 43,500 | 43,000 | +1.16 |
| HR Plate(5-10mm) | Ex-Mumbai | 37,250 | 37,500 | -0.67 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices as on Nov’17
| Commodity | Size and Grade | Prices | 1W | 1M |
| Pellet | Fe 64% | 105 | 107 | 112 |
| Billet | 150*150 mm | 475 | 460 | 473 |
| Pig Iron | Steel Grade | 348 | 338 | 330 |
| HRC | 2.5-8mm, IS 2062 | 545 | 545 | 560 |
Prices in USD/MT Source: SteelMint Research
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