Indian Steel Market Weekly Snapshot

Indian Iron & Steel market showed mix sentiments in current Week-6 (5-11 Feb), where Semis & Long steel prices decline but due to short supply, Flat steel offers further increase.

During the week prices of Semis & Finished steel products fall approximately INR 200-700/MT (USD 3-12) in across major Indian markets. In contrast, the flat steel offers surge by INR 500-1,100/MT for February deliveries.

Iron ore and pellets: As per Market sources, Honorable Supreme Court instructed in its hearing on 9th Feb’18, that if payments of penalty along with interest have been made, the miner should be allowed to resume operations. However, the miner still awaits a clear direction from the state govt. regarding resumption of operations.

Next hearing for the case related to Essel Mining is scheduled on 13 Feb’18 in Supreme Court.

Domestic pellet offers in India have decreased further this week up to by INR 250/MT W-o-W. Durgapur pellet offers have been declined significantly this week by 250/MT. Central India pellet market remains softened this week.

JSPL, largest pellet exporter has concluded 50,000 MT Pellet export deal at around USD 116/MT, CFR China this week.

Scrap: Indian steel mills remained active and inquiries witnessed an increase. Offers for Shredded in containers is assessed at USD 370/MT, CFR Nhava Sheva. However offers HMS 1 from Dubai is assessed at USD 360/MT, CFR and that from West Africa and UK around USD 345/MT, CFR.

Coking Coal: Pushed by the resurgence of imports by Chinese steel makers, Coking Coal prices in Australia have again traversed northwards. With the intent of resuming full scale steel production post the Lunar Year holidays, steel makers in China have started importing the coal for stocking, thus strengthening the demand in Australia. In view of the importing spree, Coking Coal sellers in Australia have hiked their spot prices. The latest export offers for the Premium HCC have gone up to around USD 227.5/MT FoB Australia. The offers are expected to exhibit a rising trend.

Semis Finished Steel: On weekly basis, domestic sponge iron prices slipped by INR 200-500/MT owing to improved availability amid low demand by local EAF/IF.

Private pig iron producers also slightly reduce steel grade pig iron prices due to poor inquiries and slump in global scrap prices. SteelMint’s price assessment for Central India-Raipur in current week stood at INR 28,000-28,300/MT against last week at INR 28,200-28,500/MT.

— JSW Steel, India’s largest private steel producer has reduced its gas based DRI (sponge iron) offers by around INR 500/MT (USD 8) for Feb 2018 deliveries, according to the trade participant.

— Indian Sponge iron export offers decline by USD 5/MT this week to USD 385-390/MT CPT Benapole port (land port of India & Bangladesh) due to slump in domestic prices and fall in global scrap prices.

— Durgapur based steel mills are offering induction grade billet (120*120mm) exports to Nepal at around USD 495/MT which was last week at USD 495-500/MT ex-mill. While billet (100×100) export offers from Rourkela are reported at around USD 485/MT ex-plant.

— Neelachal Ispat (NINL) reduced Pig iron prices by INR 500/MT (USD 8) in its latest price circular and offered Steel grade pig iron at INR 27,500/MT & Foundry grade material at INR 28,000/MT, ex-Cuttack, Odisha.

— SteelMint’s pig iron export price assessment stood at USD 365-375/MT FoB India, USD 370-375/MT FoB Brazil and USD 345-355/MT FoB Black sea.

Finish Long Steel Market: As per week assessment, Finish long commodities have got the constructive demand in a week sight and Medium/small mills have booked appropriate quantity in a mid week when market momentum has observed relished direction.

— South India – Chennai based 4-5 plants have shut down by government officials with an initiative to control pollution affects and may get resume within 7-8 days. These plants include standalone billet manufacturers and couple of integrated plants and the price range will get increased by their antagonist due to supply contribution to be interrupted for coming few days.

— Further, Rebar has got the positive sentiments by market participants as price level gain by INR 200-300/MT except in Durgapur where it has fluctuated by around INR 200/MT along with Mumbai market.

In a view of commodities wise – Structure has lost around INR 100-500/MT and it’s been registered at INR 37,800/MT (40 Angle) Ex-Mumbai, INR 32,800-33,000/MT (55 Angle) Ex-Raipur & Wire Rod (5.5 mm) have decline by INR 400/MT to INR 37,500/MT Ex-Raipur & INR 36,700/MT Ex-Durgapur.

Flat Steel Market: Indian flat steel prices continued to remain on higher side in traders market this week amid lesser availability of material in domestic market.

In previous week major Indian steel manufacturers have raised flat steel prices by INR 1500-2000/MT in for Feb deliveries.

Also,some major steel mills are undergoing maintenance issue in their plants due to which they are unable to supply adequate material in domestic market..Thus demand supply mismatch and less imports is leading to hike in Indian flat steel prices.

Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 44,000-44,500/MT (ex-Mumbai), INR 44,500/MT (ex-Delhi),INR 44,500MT (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 47,600-48,000/MT (ex-Mumbai) INR 47,000-48,500/MT (ex-Delhi) and INR 48,000-48,500/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.

Indian Raw material and Finished Steel reference Prices as on 10 Feb 2018 (Week 06)

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

Indian Export Reference Prices as on 10th Feb’18

Prices in USD/MT
Source: SteelMint Research