Indian Steel Market Weekly Snapshot

Indian Steel market observed limited trades during the Week-23 (04-09 June) and registered sharp fall in prices. As per participants, the producers are in hurry to deal as inquiries for Finished steel products has slowdown in major markets due to approaching monsoon.

As per SteelMint assessment, this week prices of Billet have sharply fall by INR 500-1,500/MT (USD 7-22) & Rebars by INR 300-800/MT (USD 4-12) in particular regions.

In line Sponge iron, the price have increased in the range of INR 200-800/MT (USD 3-12) in Central & East regions due to short supply & increase prices of raw materials i.e. Iron & Pellets.

Coming to price movements of Flat steel products, the price rise seen during last week by INR 500-700/MT and are unaltered in current week due to limited inquiries.

Iron ore and Pellets: Odisha’s merchant iron ore miner like KJS and Kaypee, Rungta, Essel, and Serajuddin have raised the price by INR 200/MT in a lump and by INR 150/MT in fines amid strong steel prices. As per sources, NMDC Iron Ore Auction on 7th Jun 2018 from Chhattisgarh received active Participation from Electro steel. OMC Iron Ore E-auction Bids Increase up to INR 700/MT in a recently concluded auction on 5th June 2018.

Iron ore rake availability issues prevailing in the eastern part of India has further pushed domestic pellet offers this week. Durgapur pellet prices elevated further by INR 650/MT this week. They have revised prices thrice in a week. Also, Central India (Raipur) based pellet makers have increased offers by INR 150/MT.

Scrap: Indian scrap importers continued to remain less working again this week. Price assessment stood almost stable and very limited trades are being reported in the market. Most of the steel makers remain preferring cheaper and easily available domestic scrap and sponge iron. Import activities are likely to increase in upcoming weeks as less bookings have done during the last one months’ time.

Price assessment in containers for Shredded from UK and USA stood stable at USD 380-385/MT while South Africa and Dubai origin HMS 1&2 scrap assessed in the range of USD 370-375/MT on the CFR Nhava Sheva basis. West African and European HMS assessment stood in the range of USD 345-355/MT, CFR depending on the quality of scrap in containers.

Coking Coal: Seaborne coking coal prices moved up this week on the back of the strengthening China’s domestic market for the steel making raw material as well as uncertainties over Australian supply. Moreover, prices are expected to increase further depending on the sustainability of Chinese buyers’ demand for importing Coking coal. Additionally, ongoing logistical issues persisting in Australia’s Queensland coal belt area is likely to prevent any near-term downward correction in coking coal prices. Import offers for the premium HCC are assessed at around USD 197/MT FOB Australia, which translates to around USD 211 CFR India.

Semi Finished: Indian billet prices decline over limited purchase by re-rollers on seasonal weak demand. As per assessment, the prices fall by INR 400-1,500/MT and the major fall of INR 1,300-1,500/MT seen in Jalna & Mumbai, Western India due to heavy rainfall forecast resulted poor trades.

Further, Sponge iron offers increased over less production amid rise of key raw material prices of Iron ore & pellets.

— The latest billet export offers for Nepal of Indian Induction grade billet (100*100 mm) stood at around USD 550/MT ex-mill, Durgapur & USD 540/MT ex-mill Odisha, Eastern India.

— Indian sponge iron export offers increased by USD 10/MT W-o-W and the price assessment for 80 FeM sponge lumps are at USD 355-360/MT CPT Benapole (dry land port of Bangladesh & India) and USD 375-380/MT CFR Chittagong, Bangladesh. As per suppliers fresh deals yet to take place as buying interest at less prices by USD 10-15/MT than the current quotes.

— JSPL has booked two rakes (equivalent to 5,500 MT) of prime grade billet for Nepal at around USD 555-560/MT (Ex-Raigarh), which is equivalent to USD 610-615/MT CFR Raxaul border (Nepal).

— In the initial days of week, NINL has reduced pig iron prices by INR 1,100/MT (USD 16.5). The company’s offer for Steel (N1) grade material were assessed at INR 28,900/MT (USD 430) & Foundry (N2) grade at INR 30,000/MT (USD 477), ex-Cuttack, Odisha. As per participants, the company manages to book around 25,000 MT Pig Iron at revised prices.

— Jindal Steel has recently reduced prices and are reported Pooled iron at INR 27,800/MT, Granulated Pig iron (Panther shots) at INR 28,800/MT ex-plant, Odisha & steel grade pig iron at INR 29,800/MT ex-plant, Raigarh.

— SAIL’s RSP (Rourkela Steel Plant) tender held on 7th June’18 to sell about 12,000 MT steel grade Pig iron had received good response as the company has sold out almost total quantity at the base price of INR 28,500/MT ex-plant.

— In the week it was also noticed, an Indian private mill has booked around 20,000 – 25,000 MT steel grade pig iron to Bangladesh at around USD 395-400/MT, FOB India.

Finish Long Steel: As per the market participants, Finish Long steel demand in India remain a concern as rainy season approaching. Small & Medium Rebar producers have reduced prices by INR 500-800/MT in current week. While Large scale producers have rolled over Rebar prices in the starting of June on account of high inventories.

Presently Rebar prices are assessed (12-25mm) at INR 41,400-42,000/MT in ex-Jalna & ex-Raipur, INR 40,300-40,500/MT ex-Mumbai. Offers through large scale producers for Rebars are assessed at INR 44,500-45,000/MT ex-Mumbai. All prices are basic & excluding 18% GST.

— Rashtriya Ispat Nigam Limited has invited a tender for export of 5,504 MT Wire rods to Nepal. The minimum offered quantity is 2,752 MT. The due date for submission of bids is 12 Jun’18.

— Vizag steel (RINL) which is one of the largest long steel producers in India has revised its prices of Billet/ Bloom, Structure & Rounds w.e.f 9 June’18 as per our sources. The company has increased its Structure prices by INR 500/MT, Round prices by INR 500-750/MT and billet/ bloom prices by INR 500/MT.

Flat Steel Market: This week domestic flat steel market remained gloomy with limited trades being reported. Dull buying and sluggish demand prevailing in traders market resulted to bearish sentiments in domestic market.

Last week major Indian mills have announced price hike of upto INR 500/MT (USD 8) for June deliveries amid higher iron ore and coking coal prices.

However hike in flat steel prices have not yet absorbed in the traders market. Traders remained distressed since end users are reluctant to purchase the material at higher prices.

Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 46,000/MT (ex-Mumbai), INR 46,200-46,300/MT(ex-Delhi), INR 46,500-47,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST at 18%.

Trade reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 51,500/MT (ex-Mumbai),INR 53,500/MT (ex-Delhi) and INR 52,000-52,500/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.

Indian Raw material and Finished Steel reference Prices as on 9 June 2018 (Week 23)

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

Indian Export Reference Prices as on 9th Jun’18

Prices in USD/MT
Source: SteelMint Research