Indian steel prices were firm during the 1st half of Week 16 (16-21 Apr 2016) amid average demand domestically. However, by the end of the week producers have been reluctant to cut prices over limited inquiries.
As per SteelMint assessment, during the week prices of Semis & Finished long steel products have declined by INR 200-800/MT (USD 3-13). However, the Flat steel prices were unaltered amid limited supply & firm demand.
Iron ore and Pellets: Odisha’s second largest merchant iron ore mine – Serajuddin Mines has decreased iron ore offers effective from 18th Apr 2018. Miner has decreased lump prices by INR 250/MT and fines by INR 150/MT.
National Mineral Development Corporation (NMDC) C.G, state-owned and India’s largest merchant iron ore mine has cut its prices by around INR 100/t. Following price cut in Chhattisgarh mines, NMDC cuts Karnataka E- auction iron ore base prices also to INR 80-100/MT.
Another side govt. decision to allow re-auction of mining leases before expiry to prevent supply disruption. Total 288 numbers of mines going to expire its lease on 31st March 2020.
Domestic pellet prices in eastern India have witnessed an increase up to INR 50- 250/MT W-o-W. However, in other major pellet markets prices have spurred slightly this week. In Durgapur (eastern India) pellet price assessment has increased INR 250/MT W-o-W. Southern India (Bellary) based pellet manufacturers have reduced pellet offers by INR 100/MT. Improved trades this week have also supported pellet prices.
Scrap: Amid increasing restocking activities before Ramadan holidays, sentiments turned positive in Indian imported scrap market this week. A steel mill booked another bulk cargo containing 32,000 MT mix-grade scrap at USD 384/MT, CFR Kandla. Shredded from UK/USA sold in containers at USD 388-393/MT, CFR Nhava Sheva. Price assessment for Dubai origin HMS 1 stood at USD 380-385/MT, CFR Nhava Sheva. While West African and European HMS 1&2 assessed in the range of USD 355-365/MT, CFR levels. Offers have moved up USD 5-10/MT on W-o-W basis and the scrap buying activities are expected to remain healthy in coming days in India.
Coking Coal: Over supply and lacklustre demand continued to pull down Coking Coal prices in Australia. Many steel makers in China have now adopted wait-and-watch stance in view of the falling prices of the coal, postponing their coal purchases.
Purchases of the coal by Indian steel makers also have loosen steam as they will start active purchases from the next month onwards, to stock the coal ahead of the rainy season. Spot prices of the Premium HCC have fallen to around USD 186/MT FoB Australia.
Semi Finished: The Sponge & Billet manufacturers in Central & East India reported falling demand and have started to reduce prices. However, as per assessment pig iron prices have increased by INR 800-2,000/MT (USD 12-30) due to supply constrains and higher Sponge & Billet prices.
— Indian Sponge iron export offers to Bangladesh for lumps grade FeM 78-80, hovering at USD 365-370/MT CPT Benapole (dry land port of Bangladesh & India) and USD 385-390/MT CFR Chittagong, Bangladesh. These offers are up by about USD 5-10/MT as compared to the previous week.
— Indian Sponge iron export offers to Nepal by Odisha & Jharkhand (East India) based manufacturers is being raised by USD 15-20/MT and are currently assessed at USD 335-340/MT ex-works, FeM 80 lumps grade & loaded to wagon.
— Induction grade Billet export offers for Nepal by steel mills in Durgapur have increased to around USD 540/MT against last week at USD 532-537/MT.
— In the week, Jindal Steel’s power cut remained by about 60-70% in Raigarh-Punjipatra based steel plants, as per the manufacturers.
— Jindal Steel offering Granulated Pig iron (Panther shots) at INR 29,500/MT ex-plant, Angul, Odisha. The company also offering Pig iron from its Raigarh unit at INR 31,000/MT ex-plant. As per the officials, monthly merchant sale for Panther shots is about 30,000-40,000 MT.
— Tata Metaliks, India’s one of the largest foundry grade pig iron manufacturer has raised its domestic prices by INR 600/MT (USD 10) & reported at INR 33,000/MT for high silicon, foundry grade Pig iron, ex-plant, Kharagpur.
— SAIL’s RSP (Rourkela Steel Plant) tender held on 19th Mar’18 to sell about 2,800 MT steel grade pig iron have received good response and the allotted material have been sold out at INR 30,500-30,600/MT (ex-plant) – participants reported.
Finish-Long Steel: As per week assessment, Finish Long Steel comes with sluggish sentiments as per existing price range in particular regions where trade inquiries have shrunk & not heard any major deals on regular basis in comparison to last week.
Further, Industry participants anticipates minor price corrections in days to come due to pile up inventories which may force producers to further reduce prices. Also, slight discounts through the suppliers end being started to provide, as per sources.
— Rathi Steels based North region decrease the price range by around INR 700/MT on week basis and currently offering at INR 41,650/MT 12 mm, Ex-work & excluding GST.
Flat Steel Market: This week India’s flat steel prices remained steady post hike in flat steel prices by INR 750-1000/MT observed in the beginning of this month.
Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 45,000/MT (ex-Mumbai), INR 45,000-45,500/MT(ex-Delhi),INR 45,500-46,000/MT (ex-Chennai). The prices mentioned above are basic prices excluding GST @ 18%.
Trade reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 50,000-50,500/MT (ex-Mumbai), INR 51,000-51,500/MT (ex-Delhi) and INR 51,500/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.
Currently trade reference prices (basic) for plates 5-10 mm (IS2062) 2.5 mm-8 mm are assessed at INR 44,500-45,000/MT (ex-Mumbai), INR 45,000/MT(ex-Delhi). The prices mentioned above are basic prices excluding GST @ 18%.
Market sources commented that constant rise in flat steel prices has been absorbed in domestic market amid supply issue which is still prevalent.Thus limited supplies and stable inquiries have kept prices intact.
Indian Raw material and Finished Steel reference Prices as on 21 Apr 2018 (Week 16)
| 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 | 5,200 | + 200 |
| Iron ore Fe 62%, 10-30 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET, GST at 5%Extra | 5,250 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 199 | -6 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 26,000 | 0 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 19,600 | -900 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 31,300 | 1,000 |
| Billet 125*125 MM | Ex-Mumbai | GST at 18% Extra | 35,600 | -600 |
| Rebar (12mm) | Ex-Mumbai (Medium Scale) | GST at 18% Extra | 39,400 | -700 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 39,900 | -300 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 40,000 | -100 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 45,000 | 0 |
| CRC (0.90mm) | Ex-Mumbai | GST at 18% Extra | 50,000 | 0 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 44,500 | 0 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices as on 21st Apr’18
| Commodity | Size and Grade | Prices | 1W | 1M |
| Pellet | Fe 64% | 100 | 100 | 103 |
| Billet | 150*150 mm | 510 | 506 | 540 |
| Pig Iron | Steel Grade | 400 | 390 | 390 |
| HRC | 2.5-8mm, IS 2062 | 645 | 645 | 647 |
Prices in USD/MT
Source: SteelMint Research
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