Indian Steel Market Weekly Snapshot

Indian steel market was on positive note during the week 14 (2-7 April, 2018) as the prices rose sharply with the strong inquiries.

In these days, prices of Semis & Finished long steel products rise approximately by INR 500-1,500/MT (USD 7-23) in across major Indian markets.

Further, the flat steel offers were also up by INR 750-1,000/MT W-o-W over improved offers globally.

Iron ore and Pellets: Odisha’s merchant iron ore producer – KJS Ahluwalia and Kaypee Enterprises has announced a price cut of about INR 200/MT in lumps and INR 150/MT in fines. National Mineral Development Corporation (NMDC) has rolled over iron ore base prices for Karnataka and C.G for Apr’18 deliveries.

Odisha Mining Corporation (OMC) has received overwhelming response with entire offered quantity being booked. In further development, RP Sao, merchant miner of Odisha received “consent to operate” from the Apex Court after being payment of compensation amount along with interest. The mine had been shut down for a period of around 2 years.

Domestic pellet prices in eastern India continue to witnessing fall of up to INR 100-300/MT W-o-W. In Durgapur (Eastern India) pellet price assessment has come down further by INR 200/MT W-o-W. However, in other markets pellet prices have remained unchanged this week.

Scrap: Indian imported scrap market witnessed thin trades this week amid supportive local steel prices. Falling global scrap prices pull down imported scrap offers by USD 5/MT on W-o-W basis. Shredded sold at USD 388-390/MT and HMS 1 at USD 375/MT on CFR Mundra basis in containers. Offers from UK and USA for Shredded assessed at around USD 388-393/MT while HMS 1 from Dubai assessed at USD 375/MT, CFR Nhava Sheva. HMS 1&2 (80:20) from UK offered at USD 365/MT, CFR. Scrap buying activities are expected to gain momentum with slight corrections in the offers in the near terms however steep price fall looks limited.

Coking Coal: The Coking Coal market has again come under the grip of weather disruptions. The recent occurrence of a tropical cyclone forced the DBCT authorities to declare force majeure on Coking Coal loading’s at the port terminal.

At the same time, offers for the Premium HCC also have inched slightly upwards, to around USD 197.50/MT FoB Australia.

Although the cyclone has now receded, moisture levels of the coal stocked at the stockpiles must have gone up due to the heavy rains, associated with the cyclone. Besides, some damages to the rail as well as port infrastructure could have likely occurred.

The coal prices are thus expected to drift upwards in the coming days.

Semi Finished: Domestic Billet prices have increased in by INR 500-1,500/MT (USD 7-23) & the sponge iron prices rise by INR 300-700/MT.

As per induction mills they are running out of stock, while sponge producers stated better demand than the last week.

— Indian Sponge iron export offers which was declined to USD 357-360/MT in the beginning of week have regained to USD 360-365/MT by the weekend, CPT Benapole & USD 380-385/MT CFR Chittagong.

— Vizag Steel concludes 20,000 MT bloom export tender. And the tender for 150*150mm bloom has been concluded at USD 505/MT, FoB India and 200*200mm at around USD 495/MT, FoB (10,000 MT each)

Further, the plant concluded export tender of 8,256 MT billet and 5,504 MT wire rod coils to Nepal. The billet (90×90 mm) export tender was concluded at around USD 525/MT (ex-mill) and Wire rod at around USD 650-655/MT for 5.5 mm & USD 635-640/MT for 6.0 mm on ex-mill basis, as per participants.

— In the initial days of week, Jindal Steel has reduced offers for Granulated Pig iron (Panther shots) to INR 28,000/MT. In the last month the offers for the same material was heard at around INR 29,000/MT. Both are ex-plant, Angul (Odisha) and excluding 18% GST.

— East India based private pig iron producers have increased prices by INR 500-800/MT (USD 8-12) in this week. The current offers for Steel grade Pig iron evaluated at INR 28,700-29,000/MT ex-Durgapur & INR 29,300-29,700/MT ex-Raipur.

— Recently, RINL (known as Vizag Steel) has increased steel grade Pig iron prices by INR 600/MT to INR 29,100/MT ex-plant (Vizag), as per company’s price circular w.e.f. 1st Apr’18.

— SteelMint’s Pig iron export price assessment stood at USD 385-395/MT FoB India, USD 385-390/MT FoB Brazil and USD 385-395/MT FoB Black sea.

Finish-Long Steel: As per week assessment, Finish Long steel have been evolved and Rebar price range increased by around INR 500-1,000/MT at major locations and a recent hike by major producer by around INR 500/MT have brought the positive outlook for medium & small scale producers.

— Vizag Steel Plant have elongated Finish Long Steel Prices by around INR 500/MT in Rebars & Structure, w.e.f 01.04.18.

— Rathi Steels based in North Region considered one of the price settlers increased the price by INR 1,000/MT on weekly basis and current range of 12 mm rebar around INR 41,600/MT, Ex-Delhi.

— Structure & Wire Rod remained positive with gaining of INR 500-1,000/MT and Further, Mandi based Pipe manufacturers decreased guage parity by around INR 3,500-4,000/MT in almost all sizes wef 01.04.18.

Flat Steel Market: Few major Indian steel manufacturers have announced increase in domestic flat steel prices by INR 750-1,000/MT in the month of Apr’18. Indian steel mills including JSW Steel, Essar Steel have announced price hike.

After increase JSW’s HRC (2.5 mm- 8mm,IS2062) is around INR 45,500-46,000/MT (ex-Mumbai) and that of Essar Steel is in the range of INR 44,500-45,000/MT (ex-Mumbai).The prices mentioned above are basic prices excluding GST @ 18%.

Price of CRC (IS513) 0.9mm offered by these mills is hovering in the range of INR 49,750-50,500/MT (ex-Mumbai).The prices mentioned above are basic prices excluding GST@18%.

Domestic flat steel prices are showing upward momentum owing to increase in global flat steel prices.Major exporting nations are offering HRC export offers on higher side

However on the other side,traders are reluctant to purchase the material over higher steel prices. Sentiments in the traders market remained bearish due to slow demand.Also they remain skeptical since they feel increased prices will be difficult to absorb in the domestic market.

Indian Raw material and Finished Steel reference Prices as on 7 Apr 2018 (Week 14)

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

Indian Export Reference Prices as on 7th Apr’18

Prices in USD/MT
Source: SteelMint Research