Indian Steel Market Weekly Snapshot

Indian steel market observed surge in prices during week-9 (23 Feb – 2 Mar’19) as demand improved from the domestic buyers along with prevailing positive trends on assumptions of further surge in prices by large steel mills.

As per the assessment, this week mid sized mills have raised Semis & Finished long steel prices by INR 200-1,100/MT (USD 3-16) in across major Indian markets. In line with Flat steel, the major mills have raised prices by INR 1,000-1,500/MT.

However the raw materials (Iron ore & Pellet) prices fall slightly in current week after a constant rise in earlier weeks.

Iron ore and Pellets

Essel Mining, a unit of Aditya Birla group is set to reduce its offers for iron ore lumps by INR 400/MT (USD 5.6). Meanwhile, National Mineral Development Corporation (NMDC), has announced hike in floor prices in Karnataka e-auctions by around INR 400/MT in both fines and lumps.

— Indian pellet offers have decreased further this week by INR 200-550/MT over lowered pellet buying interest from China and Indian domestic market at current offers.

— SteelMint’s current pellet assessment for Durgapur is around INR 6,300-6,500/MT this week against the end of last week’s assessment at INR 6,700/MT. Central India based pellet manufacturers have reduced offers to INR 7,200/MT as against last assessment of INR 7,600/MT; ex-Raipur & excluding GST.

Coal

Seaborne metallurgical coal prices have mostly remained firm over the past week as buyers in China appear to be treading cautiously, preferring to “wait and watch” in an effort to gauge the end market demand and price direction, especially after their week-long absence during the Lunar New Year holiday break.

In China, buying interest has remained relatively low with no urgent requirements reported this week. This could be in light of the persistent uncertainties over port restrictions in North China. A lack of sustainable downstream demand from the steel mills was observed, which exerted downward pressure on prices for seaborne coking coal cargoes, rendering them more competitive compared with domestic prices.

— Latest offers for the Premium HCC grade are assessed at around USD 211.75/MT FOB Australia & USD 223.25/MT CNF India.

Scrap

Indian scrap importers remained less active amid bearish sentiments, trade tensions between India and Pakistan and hike in scrap cargo freight rates this week. Prices fell around USD 10/MT W-o-W for the second successive week and anticipated to have reached short term bottom.

— SteelMint’s assessment for containerised Shredded scrap fell to USD 325-330/MT on very limited trades, while offers from suppliers were being quoted mostly in the range USD 330-335/MT; CFR India (Nhava Sheva).

— HMS 1 from Dubai and South Africa traded in the range USD 322-330/MT, while West African HMS assessed at USD 300-310/MT; CFR.

— After moving further down domestic scrap prices, have been recovered in the second half this week by INR 400-600/MT.

— India’s DGFT exempts Pre Shipment Inspection Certificate for metal scrap imports at Mundra port.

Semi Finished

Indian Semi finished steel prices increase further and as per SteelMint assessment, the domestic Billet prices have increased by INR 300-1,100/MT (USD 4-16) & Sponge iron by INR 200-800/MT (USD 3-11). Participants reported good demand on rising prices

— Indian sponge iron export offers for 80 FeM sponge lumps hovering at USD 310-315/MT CPT Benapole (dry land port of Bangladesh & India) and USD 330-335/MT CFR Chittagong, Bangladesh.

— Indian induction grade billet (100*100 mm) export offers to Nepal are reported at USD 445-450/MT (ex-mill at Durgapur, West Bengal), equivalent to USD 475-480/MT CFR Nepal (Raxaul border).

— SAIL’s Rourkela Steel Plant tender held on 27th Feb’19 to sell about 15,000 MT steel grade pig iron, had received weak response. The base price for the tender was quoted by RSP at INR 27,400/MT and near about 90% (13,500-14,000 MT) material remained unsold.

— Vizag Steel- state-owned steel maker, has issued a export tender of 25,000 MT basic grade Pig iron for any country other than Nepal. This tender is due on 4 Mar’19.

— Raigarh, Central India based Jindal steel has maintained offers this week and reported at INR 28,000/MT (ex-plant) for Steel grade pig iron.

— SAIL export tender for 24,300 MT Prime Mild Steel CC Billets from its IISCO plant concluded at around USD 465-470/MT, FoB Vizag. The bid due date was 20 Feb’19 and the bid validity was till 25 Feb’19. The material shipment is scheduled by 31 Mar’19 from Vizag port.

— SteelMint’s Pig iron export price assessment stood at USD 355-360/MT FoB India, USD 330-340/MT FoB Brazil & USD 335-345/MT FoB Black sea.

Finish Long

Indian Finish long steel market rebound amid positive view by market participants and overall average trade volume has been noticed in most of the regions.

Traders are still cautious to book healthy volumes on strengthening prices as few pending stock yet to lift by retailers and overall medium scale manufacturers doesn’t bothered due to previous order existence as weekly price range moved up to INR 1,100/MT.

Further market expects that slight uncertainty may noticed, if deals not support at current higher price range.

— Current trade reference rebar prices (12-25 mm) assessed at INR 39,000-39,400/MT Ex- Jalna & INR 36,600-36,900/MT Ex- Raipur; basic & excluding GST.

— During the week, Central region, Raipur based heavy structure manufacturers have maintained trade discount around by INR 300-400/MT and current trade reference prices at INR 41,900-42,200/MT (200 Angle), ex-work.

— Tata Metaliks based in Khargapur, eastern India in recent board meeting (held on 27th Feb’19) has announced to two-fold increase in its DI pipe production capacity from 2 lakh tone p.a. to 4 lakh tone p.a.

— This week, wire rod export offers from mid sized mill in Durgapur have reported at USD 520-525/MT, although deals heard at close to USD 515-520/MT; ex-mill, equivalent to USD 545-550/MT CNF Nepal (Raxual border).

— JSW Steel & Vizag Steel (RINL) both have increased rebar offers for Mar’19. JSW steel has raised rebar prices by around INR 1,500/MT, while Vizag Steel hike by INR 300-800/MT depending on the location and sizes, as per sources. After consideration of hike, rebar offers by large players stood at close to INR 42,000-42,500/MT ex-Mumbai, 12 mm & excluding 18% GST.

— Jindal Steel and Power Limited – (JSPL), one of the largest steel producer in India has marked sharp surge in wire rod production by 48% M-o-M in Jan’19 and stood at 34,000 MT in comparison with 23,000 MT in Dec’18: JPC

Flat Steel

Major Indian steelmakers hike flat steel – HRC prices in Indian domestic market by INR 1,000-1,500/MT for Mar’19 amid hike in global prices.

After increase in mills price, effective offers of HRC (2.5-8 mm, IS2062) is in the range of INR 43,500-44,500/MT, whereas prices of CRC (0.9 mm, IS513GR) hovering at INR 49,000-50,000/MT. The prices are ex-Mumbai; basic & excluding 18% GST. However the price hike reflection will be seen in traders market next week.

Reference Prices as on 2 March 2019 (Week 9)

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

Indian Export Reference Prices as on 2nd March’19

Prices in USD/MT
Source: SteelMint Research