Indian Steel Market Weekly Snapshot

Indian steel market moved downwards in week-19 (7-12th May) owing to weakening trade activities in domestic market. The producers in major markets also stated downfall in spot trade volumes, hence pressurised to reduced prices.

As per SteelMint assessment, during the week prices of Semis & Long steel products down approximately by INR 500-1,500/MT (USD 7-23) in across major producing markets.

However, in the same period Flat steel prices have increased by INR 500-1,000/MT (USD 7-15) in traders market; followed the price hike by producers end a week ago for May deliveries.

Iron ore and Pellets: After receiving ‘consent to operate’ from Supreme Court, RP Sao has resumed iron ore dispatches from its mines recently and the miner is expected to resume giving offers from Monday (14th May’18). OMC has received good response around 88% (325,000 MT) of material managed to get booked. Bids remained closed to the base price.

Eastern and Western India pellet based makers (Jindal Saw) have concluded a deal for export to Malaysia and South Korea simultaneously. Durgapur offer of pellets unchanged for this week. However, in Central and Southern Indian markets, pellet prices have declined amid fall in sponge prices.

Scrap: Indian scrap buyers remained holding fresh bookings amid fluctuating currency and less clarity about price direction in the global scrap market. While stability prevails in the market prices on weekly basis. Few trades for Shredded from USA and UK were reported in the range USD 385-390/MT, CFR Nhava Sheva. Price assessment for South African HMS 1&2 and Dubai HMS 1 stood almost stable at USD 380-383/MT, CFR. West Africa and European HMS assessed at USD 355-360/MT, CFR. Cheap availability of sponge and local scrap kept buyers slow in bookings large volumes for imported scrap.

Coking Coal: Coking coal prices have commenced recovery from its declining trend so far this fiscal, and could be headed for an uptick in the near-term on the back of robust import growth in China. Globally, the metallurgical coal market appears to be holding strong buying sentiments from certain end-users in view of strengthening steel and coke prices. Indian imports of the coal can also be projected to gain momentum due to the likelihood of steelmakers piling up inventories ahead of the monsoon season. Spot prices of the Premium HCC were assessed at around USD 187.50/MT FoB Australia.

Semi Finished: Indian Semi finished prices decreased further over weak trade activities during the days. As per SteelMint assessment, the domestic Billet prices have slumped by INR 200-1,200/MT (USD 3-18) & Sponge iron by INR 300-1,400/MT (USD 4-21).

In these period major fall of INR 1,200-1,400/MT in Semi finished seen in North & East India, due to limited inquiries.

In line Pig iron, prices declined by INR 500-1,000/MT. According to trade participants demand was subdued amid improved supply by private Pig iron producers.

— Indian Induction grade Billet export offers for Nepal by Durgapur based steel mills have reported at around USD 525-530/MT ex-mill.

— 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. These prices are similar against last week assessment, but no fresh deals have been reported.

— An Indian steel maker had floated a tender for export of 10,000 MT billets (IS 2830,GR A, size 90*90 mm 12 meters) and the tender was received the highest bid at around USD 530-535/MT, FoB India – as per sources.

— Punjipatra, Raigarh based steel manufacturers are still facing problems of power cut by JSPL. The plant’s are getting power supply of about 18 hrs per day.

— Recently, Jindal Steel offering Granulated Pig iron (Panther shots) at INR 29,500/MT & Pooled iron at INR 28,800-29,000/MT ex-plant, Odisha. The company also offering Pig iron from its Raigarh unit at INR 30,800-31,000/MT ex-plant.

— Neelachal Ispat Nigam Ltd (NINL), India’s largest and state owned steel grade pig iron manufacturer & exporter has reduced pig iron prices by INR 1,000/MT (USD 15). The latest offers for Steel (N1) grade material are assessed at INR 30,000/MT (USD 462) & for Foundry (N2) grade at INR 31,000/MT (USD 477), ex-Cuttack, Odisha. As per sources, the company has received good response and the total quantity have been sold out.

Finish Long steel: As per week assessment, Finish Long Steel prices have been declined around INR 500-1,500/MT commodity wise by trade industrialist amid subdued demand specifically in Rebars (12-25 MM) & Wire Rod (5.5 MM).

Price movement getting narrowed with inappropriate trade volumes amid falling billet prices and it is having general anticipation among trade participants to get rectified price for relishing supply chain movement.

While in South region, Chennai market specifically Rebar (12-25 MM) price range seem to be hovering around INR 41,200-41,500/MT (+/-) from last couple of weeks amid average demand as well as supply movement and traders are expecting the price range will get sustain for near term upon steadiness in Billet which is currently around 37,000/Mt & local Scrap at INR 26,300-26,400/MT; ex-works & excluding GST.

Flat Steel Market: Following price hike announced by major Indian steel mills last week, prices in traders market moved up this week. Traders market reported mixed sentiments regarding bookings and trade activities. Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 46,000-47,000/MT (ex-Mumbai), INR 46,500/MT(ex-Delhi),INR 46,500/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 51,500/MT (ex-Mumbai),INR 52,500/MT (ex-Delhi) and INR 51,500/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.

Indian Raw material and Finished Steel reference Prices as on 12 May 2018 (Week 19)

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

Indian Export Reference Prices as on 12th May’18

Prices in USD/MT
Source: SteelMint Research