Indian Steel Market Weekly Snapshot

During this week (15-20 Oct) of 2018, Indian domestic steel offers remained volatile, however trades remained on lower side amid ongoing Dussehra festive holidays.

As per SteelMint’s assessment, in these days prices of Semis products (Billet & Sponge iron) have increased by INR 200-1,000/MT (USD 3-14) however limited trades were observed at high offers. While, the Finished Long steel prices fluctuated by INR 400-600/MT. In context to Flat steel, the suppliers have maintained offers with limited trade activities.

Presently, buying activities remain dull owing to an inert mood of buyers and festive holidays. Most of the participants adopted ‘wait & watch’ mode for the next week.

Iron ore & Pellets: India’s largest iron ore miner – National Mineral Development Corporation (NMDC) is going to conduct an e-auction for 40,000 MT calibrated lump ore, 16,000 MT ROM, 16,000 MT iron ore lump and 40,000 MT iron ore fines on 23rd Oct’18.

Central India (Raipur) pellet offers stood at INR 8,400-8,500/MT, however, buying interest is lower by INR 300-400/MT than current offers. Durgapur pellet price assessment has not seen any movement and it remains marginally unchanged to INR 8,000-8,100/MT (delivered) in line with the last week’s assessment. Amid festive holidays less trades were reported.

Indian pellet export prices have softened this week further amid uncertainty of Chinese steel mills regarding winter production cuts. Southern India based pellet maker – KIOCL had floated an e-tender for export of 50,000 MT pellets (Fe 64%, 2% Alumina). The bid submission due date was on 11th Oct. According to market sources report to SteelMint, the tender received highest bid around USD 140/MT, FoB which is less by USD 9-10/MT against its previous tender in 3rd week of Sept’18.

Indian Imported scrap booking remained very slow amid local festive holidays and depreciated currency this week. Prices corrected marginally on slowdown in the demand amid limited deals concluded despite firm global levels. Shredded scrap from UK and Europe traded in containers in the range of USD 355-360/MT, CFR Nhava Sheva. While limited offers heard for Dubai and South African HMS 1&2 containerized scrap in the stable range of USD 335-345/MT, CFR Chennai on W-o-W basis. West African HMS heard at around USD 320-330/MT, CFR Chennai

Seaborne metallurgical coal prices strengthened on higher trades getting concluded in the FOB market, while CNF China offers remain unchanged on slow trade as Chinese end-users continue to adopt a wait-and-see attitude due to cheaper domestic coal.

Chinese buyers are not receptive to current prices, and could see port stock activities pick up in the near term with end-users seeking small tonnages of coking coal.

Meanwhile, the persistence of vessel queues at Dalrymple Bay Coal Terminal in Queensland and concerns about Australia’s rainy season approaching would prevent any significant correction in FOB prices in the coming weeks.

Besides, a possible disruption at a major coal mine in Mozambique could be contributing to the rise in prices, according to Indian trading sources.

The latest price for the Premium HCC grade is assessed at around USD 223/MT FOB Australia, higher by about USD 8.50/MT than the closing price of around USD 214.50/MT at the end of last week (i.e. on 12 Oct’18).

Latest import offers for the 64 Mid Vol HCC grade are assessed at around USD 184.30/MT FOB Australia, higher by about USD 2.05/MT than the closing price of around USD 182.25/MT at the end of last week (i.e. on 12 Oct’18).

For Indian buyers, the above offers amount to USD 239.55/MT and USD 200.85/MT respectively on CNF India basis.

Semi finished steel market showed improvement on weekly basis, domestic Sponge offers surge by INR 200-300/MT in major markets. However in East India Market remains uncertain over Durga Puja. Meanwhile, Indian buying activity has considerably subdued due to the onset of festive moods. While domestic Billet prices have inclined by around INR 200-800/MT (USD 3-11).

— Indian sponge iron export offers to Bangladesh for lumps grade FeM 78-80, recorded at USD 330-335/MT CPT Benapole (dry land port of Bangladesh & India) and USD 350-355/MT CFR Chittagong, Bangladesh. These prices are similar against last week assessment, but no major deals have been reported due to festive season.

— Tata Sponge Iron Ltd – one of the largest sponge producers in Eastern India has reported decline of 15.30% in its total income to INR 23,107 Lacs in Q2 FY19 as against INR 27,283 Lacs in Q1 FY19.

— On 18 Oct’18, Indian government officially notified imposition of anti-dumping duty on imports of alloy bars and rods from China for the period of five years. The duty ranges from USD 44.89 to USD 185.51 per tonne varying for different producers and exporters.

— Rashtriya Ispat Nigam Limited (RINL) – a state owned steel maker under the Ministry of Steel, has invited a tender for export of 10,000 MT Billets and 20,000 MT Blooms. Interested bidders can submit their bids till 24 Oct’18 at 11:00 hrs.

— SteelMint’s Pig iron export price assessment stood at USD 388-390/MT FoB India, USD 350-360/MT FoB Brazil and USD 370-375/MT FoB Black sea.

Finish Long steel has been observed mix sentiments and market trend hovering with uncertain direction in particular regions. However price range improved in specified locations during mid week and considerable trade volume was booked by traders end with an assumption to get developed prices.

Further, central based heavy structure mft’s maintained trade discount level to INR 800-1,000/MT as per quantity and current trade reference price hovering at INR 42,600-43,000/MT (200 Angle).

Currently trade reference rebar (12-25 mm) price assessed at INR 38,300-38,500/MT ex- Jalna, INR 37,500-37,800/MT ex- Raipur, INR 40,500-40,900/MT ex-Chennai. All prices are basic & excluding GST.

Finish Flat Steel: This week Indian HRC, CRC prices continue to remain stable on the backdrop of festive season along with thin trades prevailing in domestic market. Trade participants shared limited trade volumes and tedious demand in domestic market.

The current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 47,500/MT (ex-Mumbai) & INR 47,500-48,000/MT (ex-Delhi).The prices for CRC (IS513) 0.9mm is hovering in the range of INR 53,500-54,000/MT (ex-Mumbai) & INR 53,000 – 54,500/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

Indian Raw material and Finished Steel reference Prices as on 20 October 2018 (Week 42)

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

Indian Export Reference Prices as on 20th October’18

Prices in USD/MT
Source: SteelMint Research