Indian Steel Market Weekly Snapshot

During week 10 (5-10 March), domestic steel offers remained volatile amid moderate demand in the domestic market.

As per SteelMint’s assessment, this week prices of Semis & Finished steel products fluctuated by INR 200-800/MT (USD 3-12) in across major Indian markets. In contrast, the flat steel offers surge by INR 1,000/MT for March deliveries.

Iron ore and Pellets: Major merchant iron ore miners in Odisha are maintaining the same offers as of now. Few major miners resuming iron ore sales. Market participants are eyeing for fall in Odisha iron ore prices in near term.

— NMDC has slashed its prices by INR 90 to INR 120/MT for March deliveries.

— OMC auction held on 7th Mar’18 received a good response with entire quantity received bids, but the bids were concluded at prices lower than bids received in the previous auction (6th Jan).

Domestic pellet prices in Eastern and central India continue to remain under pressure witnessing fall of up to INR 100-200/MT W-o-W. However, in Southern and Western India pellet prices have remained unchanged. Central and Eastern India based market participant’s shared dull buying interest in pellets.

Scrap: Following robust global scrap prices, imported scrap offers to India moved up this week by USD 5-10/MT. Indian scrap importers booked containerized scrap in which Shredded scrap traded from UK and USA origin in the range of USD 400-405/MT, CFR Nhava Sheva. While HMS 1&2 (80:20) in containers assessed stable at around USD 380/MT, CFR from Dubai, at USD 360-370/MT, CFR from West Africa and at USD 375/MT, CFR from UK origin respectively.

Current bulk offers for Shredded or composite scrap cargoes are hovering in the range of USD 415-420/MT mostly for April shipments. Few importers were in ‘Wait and Watch’ mode over high prices for imported and kept preferring domestic scrap.

Coking Coal : Coking Coal prices have maintained stability despite a drop in the demand for Australian Coking Coal, the prime international export market. The waning of the demand has risen due to the Chinese steelmakers – the largest consumers of the coal, temporarily halting their imports in view of the significantly higher prices of the coal.

However, demand for Coking Coal is expected to return after 15 Mar’18, when the curb on steel production during the winter season mandated by the Chinese government will come to an end, and full-fledged steel production will resume in China.

In view of the impeding demand, sellers in Australia have refrained from lowering their prices of the coal. In Australia, spot prices of the Premium HCC were assessed at around USD 232.75/MT FoB Australia. The subsequent movement in the price will be governed by the demand pattern emanating from China.

Semi finished: In a week duration, domestic Sponge iron & billet offers fluctuated in the range of INR 200-500/MT (USD 3-8) in major markets. While in Chennai, Southern India due to limited production, short supply & multiple sentiments, billet offers rise upto INR 1,500-2,000/MT (USD 23-30).

Indian pig iron prices rally again and hit 6-yrs high on supply issues by private producers. The price rise in East India by INR 200-500/MT and in Central regions it sharply gain by INR 1,100-1,300/MT amid average demand. SteelMint’s price assessment for Steel grade pig iron stood at INR 31,000-31,500/MT ex-Raipur & INR 29,500-29,800/MT ex-Durgapur/Odisha, excluding GST.

— JSW Steel, India’s largest private steel producer has increased its gas based DRI (sponge iron) offers by around INR 500/MT (USD 8) for March, 2018 deliveries, according to trade participants. The current offers for FeM 80-82 DRI are reported at INR 23,000-23,500/MT (USD 353-361), ex-plant, Dolvi, Maharashtra.

— Indian sponge iron export offers increase further by USD 5-10/MT W-o-W, price assessment for 80 FeM sponge lumps are at USD 395-400/MT CPT Benpole (dry land port of Bangladesh & India) and USD 415-420/MT CFR Chittagong, Bangladesh.

— Vizag Steel concludes 11,008 MT (equivalent to 4 rakes) billet export tender for Nepal at around USD 518-520/MT (ex-mill) and the buyers are heard Panchakanya Steel and Himal Iron & Steel, the prime rebar producers based in Birgunj/Bhairahawa in Nepal.

— Tata Metaliks, India’s one of the largest foundry grade pig iron manufacturer has raised its prices by INR 800/MT (USD 12) & reported at INR 32,400/MT(Ex-Kharagpur) for high silicon, foundry grade Pig iron.

Finish-Long Steel: As per assessment, finish long steel market had reported optimistic review with average supply-demand since beginning of week. Trade activities have been passed through suffice shade till mid week along with some fluctuations. However, in last couple of days inquiries has slowdown resulting slump in prices.

The current offer prices for 12 mm rebar are assessed – at INR 36,400-36,600/MT (-200) Ex-Raipur, INR 38,200-38,400/MT (+400) Ex-Durgapur, INR 38,300-38,400/MT (-500) Ex-Mumbai. The changes mentioned above on W-o-W basis.

— Raipur based wire rod manufacturers have maintained existing discount level by around INR 700-800/MT.

Flat Steel Market: Two major Indian steel-makers namely- JSW Steel and SAIL have raised the flat steel prices by INR 1,000/MT in March over supply constraints

Fire breakout took place at SAIL Bokaro hot strip mill . Owing to this production will remain hampered for around 10 days.

Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 45,500/MT (ex-Mumbai), INR 45,500-46,000/MT (ex-Delhi),INR 45,500MT (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 49,500-50,000/MT (ex-Mumbai) INR 49,000/MT (ex-Delhi) and INR 48,500-49,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.

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

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

Indian Export Reference Prices as on 10th Mar’18

Prices in USD/MT
Source: SteelMint Research