Indian Steel Market Weekly Snapshot

During the Week-18 (30 Apr-5 May) of 2018, domestic trade activities were subdued on average supply movements. As per SteelMint’s assessment, in these days prices of Semis products (Billet & Sponge iron) fluctuated by INR 100-500/MT (USD 1-8). However, the Finished steel prices for both Long & Flat products have increased by around INR 1,000/MT (USD 15).

As per trade participants of Semis & Long products, demand was majorly for ready delivery materials, hence the prices get support. However, for future bookings inquiries have slowdown, they added.

Iron ore and Pellets: Odisha’s OMC to auction 370,000 MT iron ore fines, Koira mines base prices down 20%. One of Odisha’s major merchant miner – Essel Mining reduced iron ore prices by INR 100/MT, while others are holding same offers. NMDC is still holding same iron ore prices as of now in Chhattisgarh & Karnataka. However miners are heard giving quantity discount on bulk purchases. Domestic pellet prices in eastern India increased amid hike in sponge prices.

Scrap: Imported scrap prices in India remained stable and buying activities remained intact. Assessment for Shredded scrap stands at USD 390/MT, CFR Nhava Sheva and USD 395/MT, CFR for UK origin PNS. West Africa HMS is assessed at USD 360/MT, CFR.

Coking Coal: Signs of possible up drifts in Coking Coal prices have started showing, although the benchmark price did not undergo any upward change. Chinese steelmakers have resumed purchases of Coking Coal and that is going to strengthen the overall demand for the commodity. Hence, the coal prices are expected to reverse the falling trend. During this month, imports of the coal by Indian steel makers are also expected to gain momentum as they are likely to pile up the coal inventories ahead of the monsoon season. Spot prices of the Premium HCC were reported at around USD 179/MT FoB Australia.

Semi Finished: In a week duration, domestic Sponge & Billet offers fluctuated in the range of INR 100-500/MT (USD 1-8) in major markets over bearish market trends.

In South India, Karnataka the producers stated weak demand due to upcoming assembly elections in the state which scheduled on 12th May 2018.

— The latest export offers to Nepal of Indian Induction grade billet (100*100 mm) stood at around USD 550-550/MT, in the previous week it was hovering at USD 540-545/MT ex-mill, Durgapur. Further, the Odisha, Rourkela based manufacturers also raised billet export offers to Nepal by USD 10/MT (W-o-W) and latest quote is heard at USD 540-545/MT ex-plant.

— Indian sponge iron export offers to Bangladesh for lumps of grade FeM 78-80, recorded at USD 365-370/MT CPT Benapole (dry land port of Bangladesh & India) and USD 385-390/MT CFR Chittagong, Bangladesh. Although, no fresh deals reported as buying interest is in less price by about USD 10/MT than the quote and also the producers not willing to sale it with reduce prices due to good margins on domestic trades.

— RINL’s (Vizag Steel) 150*150 mm Bloom export tender to Nepal heard have concluded at around USD 510-515/MT (ex-mill) for 5,504 MT (equivalent to 2 rakes).

— Tata Metaliks, India’s one of the largest foundry grade pig iron manufacturer has raised its prices for May’18 deliveries by INR 800/MT (USD 12) & latest prices stood at INR 33,800/MT for high silicon, foundry grade Pig iron.

— Jindal Steel has raised prices for Granulated Pig iron (Panther shots) to INR 30,000/MT ex-plant, Odisha & Pig iron (Steel grade) at INR 31,500/MT ex-plant, Raigarh.

— As per sources, SAIL’s IISCO offering Steel grade pig iron at around INR 31,400/MT (USD 476) ex-plant, Burnpur, East India. However, the private producers in same place and same grade material offered at INR 32,500-33,000/MT. Both prices excluding GST at 18%.

Finish Long steel: As per week assessment, Finish Long Steel (Rebar, Structures & Wire rod) prices registered with affirmative mode as price range escalated to INR 500-1,400/MT commodity wise. Few factors have urged medium & small scale industrialist to lengthening prices amid tight local scrap & billet supply.

— Further in the mid-week, price hike of INR 500-1,500/MT by Vizag Steel (RINL), India’s large producer have supported with certain possibilities but might not sustain for long term against a background of dull inquiries in particular regions reported by market participants.

— Rebar prices in Nepal moved up again by NPR 2,000/MT (USD 19). The reason behind the price rise is higher Indian steel prices which has made billet imports costlier for Nepal’s rolling mills. Out of total steel imports in Nepal, India’s contribution is about 90-95%, as per data maintained by SteelMint stats.

— Rathi Steels based North region increase the price range by around INR 650/MT on week basis and currently offering at INR 43,600/MT, 12 mm, Ex-work, & excluding GST.

Flat Steel Market: Recently Indian steel manufacturers have officially announced price hike in domestic flat steel market for the month of May. Mills have raised prices upto INR 1,000/MT (USD 15).

Domestic HRC prices have climbed further owing to limited availability of material in domestic market over less inventories. Meanwhile lesser import bookings amid higher global steel prices along with improved demand can be attributed for continuous hike in domestic flat steel prices.

Currently JSW Steel’s HRC (2.5 mm- 8mm,IS2062) is around INR 46,500-47,000/MT (ex-Mumbai). Also government owned PSU – SAIL is quoting HRC prices at around INR 46,250/MT. The prices mentioned above are basic prices for Mumbai region excluding GST @ 18%.

Similarly prices of CRC (IS513) 0.9mm offered by major mills are : JSW is offering CRC in range of INR 51,500-52,000/MT. And SAIL is offering CRC at INR 51,500/MT. The prices mentioned above are basic prices for Mumbai region excluding GST@18%.

However increased prices are yet to be passed on to traders market. Thus it is still uncertain that surge in flat steel prices shall be absorbed in domestic market or it will lead to decline in coming months.

Indian Raw material and Finished Steel reference Prices as on 5 May 2018 (Week 18)

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

Indian Export Reference Prices as on 5th May’18

Prices in USD/MT
Source: SteelMint Research