Indian Steel Market Weekly Snapshot

Indian steel market observed surge in prices in the last week of CY18 as demand improved from the domestic buyers. However raw materials remained on down trend on improved supply and lessen exports.

During the week (24-29 Dec’18) prices of Semis & Finished steel products through the mid size mills surge approximately by INR 200-1,300/MT (USD 3-19) in across major Indian markets. However the Flat steel products registered fall of INR 500-1,000/MT in traders market amid weak demand globally.

Iron ore & Pellets: Odisha’s major merchant miner – Essel Mining and Industries have announced another price cut in iron ore yesterday. The miner has reduced iron ore prices by INR 350/MT (USD 5) in lump and fines by INR 200-300/MT (USD 3-4).

— Eastern India pellet prices fall to 7-months low amid fewer trades. Durgapur pellet prices have moved down this week by INR 200-300/MT to INR 6,100-6,200/MT against last week’s assessment at INR 6,400/MT. Current assessment for Raipur pellet stands at around INR 6,200/MT (ex-plant) against INR 6,400-6,500/MT towards the beginning of last week.

— Jindal Steel & Power -an eastern India (Barbil ) based pellet maker has concluded two pellet export deals to China for 50,000 MT each at USD 112/MT, CFR China.

— In another pellet export deal, (Jajpur) East India based pellet maker-Brahmani River Pellets concluded deal to South Korea for around 55,200 MT of grade Fe 64% with 3% alumina at USD 112/MT, CFR.

Coal: Seaborne premium hard coking coal prices edged down this week, as more selling interest was seen in the spot market, while most buyers stayed cautious. Realistically, Chinese end-users would not be buying seaborne cargoes until they get proper clarity on the customs clearance ban on imported coal imposed at different ports in Southern China. Moreover, there is adequate supply in the domestic market.

Although there are no urgent requirements at the moment, traders expect that there could be the usual restocking needs in the near term, adding that end-users will seek seaborne cargoes when import prices fall below USD 200/MT CFR China.

— Latest prices for the Australian Premium HCC and 64 Mid Vol HCC grade are assessed at around USD 220/MT and USD 183.40/MT FOB respectively. For Indian buyers, the above offers amount to USD 232.40/MT and USD 195.80/MT CNF, respectively.

Scrap: Indian imported scrap market remained silent amid year-end and no major inquiries observed this week. Many of the supplying yards have already closed on seasonal concerns and holiday mood. Although global scrap prices continued down trend, domestic scrap prices turned up by INR 400-500/MT (USD 5-7) on lesser availability and appreciating INR.

— SteelMint’s assessment for containerised Shredded from the UK and Europe stands at around USD 325-330/MT, CFR Nhava Sheva. Dubai origin HMS-1 was being offered at USD 318-325/MT and the assessment of West African HMS stands at USD 305/MT, CFR.

Semi finished steel market showed improvement on weekly basis, domestic sponge iron offers moved up by INR 200-700/MT & Billet prices upto INR 1,200/MT. In this period major price rise in Sponge & Billet seen in Durgapur by INR 700/MT & INR 1,200/MT on improved demand from Northern India (Punjab) and for Nepal exports.

— Indian Sponge iron export offers slightly up on strong rupee against USD & surge in Indian domestic prices. The offers hovering at USD 345-350/MT as against deals at the start of current week at USD 340-342/MT CFR Chittagong, Bangladesh.

— Indian Billet export offers to Nepal surge by USD 15-20/MT (W-o-W) on rising domestic prices. The latest offers of Induction grade evaluated at close to USD 455/MT as against beginning of week at USD 435-440/MT ex-mill at Durgapur.

— On 24th Dec’18, the Steel Smelting Shop (SMS-2) of SAIL’s Bhilai Steel Plant (BSP) has achieved its highest single-day production of 51 rail bloom heats (6,020 tonnes) amid higher demand by the Indian Railways, company said in its press release.

— India’s leading steel producer, SAIL (Steel Authority of India Ltd) said on Monday that it has supplied 35,400 tonnes of steel for Bogibeel Bridge construction over the Brahmaputra river in the northeastern Indian state of Assam between Dhemaji and Dibrugarh district.

— Rashtriya Ispat Nigam Limited (RINL) has invited tender for export of 10,000 MT Billets and 40,000 MT Blooms. The bid due date is till 04 Jan’19 at 11:00 hrs.

— SAIL’s Rourkela Steel Plant tender held on 27th Dec’18 to sell about 10,000 MT steel grade pig iron & had received weak response. The base price for the tender was quoted by RSP at INR 27,950/MT and only 600 MT quantity have been sold out

— Jindal Steel reduces offer and reported Steel grade pig iron at INR 28,500-28,700/MT ex-plant, Raigarh & Panther shots (Granulated pig iron) at INR 26,800-27,000/MT ex-plant, Odisha.

— NINL extended domestic Pig iron price circular due date to 31st Dec’18 as against earlier on 27th Dec’18. The company’s offer for Steel (N1) grade hovering at INR 27,500-27,900/MT & Foundry (High silicon) grade at INR 29,000/MT; ex-Cuttack, East India.

— SteelMint’s Pig iron export price assessment stood at USD 355-365/MT FoB India, USD 340-345/MT FoB Brazil & USD 345-355/MT FoB Black sea.

Finish Long Steel market has been improved on weekly basis and price range increased upto INR 1,300/MT in specified locations amid improved trade volumes.

Market participants assuming that price range will hover in existing range with slight fluctuations as stock level is maintained on average basis in major locations of Central & Western regions.

Further as per sources few mid size mills in Central India are planning to add on finish long steel (TMT/Wire Rod) capacities in a month or two.

— Current trade reference rebar prices (12-25 mm) assessed at INR 36,700-37,000/MT Ex-Jalna & INR 35,200-35,600/MT Ex- Raipur; basic & excluding GST.

— Wire Rod trade discount offered by the manufacturers/suppliers in Raipur have decreased compared to last week which is now about INR 500-700/MT, as per sources.

— Large Mills have not made any announcement of price revision in the current week but traders/stockist reduces prices in rebar by about INR 500/MT in order to push sales.

— Currently trade reference rebar prices through the large mills hovering at INR 40,700-41,100/MT ex-Vizag & INR 40,500-40,800/MT ex-Mumbai, size 12 mm & excluding GST.

Finish Flat Steel: This week Indian HRC prices witnessed further correction by INR 500-1,000/MT in traders market over sluggish trades and limited buying. Although buyers are also reluctant to purchase material and await price announcement by major Indian mills for Jan’19 deliveries.

— Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 43,000-43,500/MT (ex-Mumbai) & INR 42,000-42,500/MT (ex-Delhi). The prices for CRC (IS513) 0.9mm is hovering at INR 48,500-49,000/MT(ex-Mumbai) & INR 48,500-49,000/MT (ex-Delhi). The prices are basic, excluding GST & on cash payment basis.

— Another major reason for constant correction in HRC prices is cost effective import bookings made in past which will be arriving to India in end Dec’18 or early Jan’19. Thus to cope up with competitive offers of imports, traders and manufacturers have lowered HRC prices in domestic market.

Indian steel mills exploring HRC export options – The major Indian steel manufacturers in western region is heard to be in talks to book HRC of around 25,000 MT for export to Middle East at around USD 500/MT CFR basis for January’19 shipments.

Other major Indian mill in eastern region concluded deal of around 10,000-20,000 MT of HRC with Vietnam at USD 475-480/MT CFR, for January’19 shipments.

Indian Raw material and Finished Steel reference Prices as on 29 December 2018 (Week 52)

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

Indian Export Reference Prices as on 29th December’18

Prices in USD/MT
Source: SteelMint Research