Indian Steel Market Weekly Snapshot

Indian Steel market remain uncertain during the week 11 (12-17 March) as the demand was quite dull in the beginning of week which led to price fall. However, by the end of the week there was an improvement in domestic inquiries this has led to price rise.

According to SteelMint assessment, on Week-on-Weak basis Indian Semi finished & Long Steel prices registered volatility. Although the Flat steel prices remain unchanged in the week after showing increase in the beginning of March.

Iron ore and Pellets: Indian iron ore importers turn active amid falling global prices. Gujarat and Southern India based steel mills have turned active and raised inquiries for an imported South African lump. Odisha based iron ore prices most likely to be fall in April.

Domestic pellet prices in India continue to remain under pressure witnessing fall of up to INR 50-300/MT W-o-W. However, in Southern India pellet prices have remained unchanged. West India pellet maker, Jindal SAW has slashed recently pellet prices by INR 300/MT. Reference price assessment for Central India (basic, Raipur) decreased by INR150/MT. However, trade sources reported thin buying interest at these levels.

Scrap: This week slowdown in buying interest pulled imported scrap prices down in India. No major booking heard in the market, however, minor trades in containers concluded at falling prices by around USD 5/MT W-o-W. Offers for Shredded scrap assessed in the range of USD 395-400/MT, CFR Nhava Sheva while HMS 1 from Dubai assessed at USD 380-385/MT, CFR. West African HMS scrap offered at around USD 360/MT, CFR. Over limited inventories, buyers are likely to resume imports from next week with more certain market direction.

Coking Coal : The Coking Coal market in Australia has come under the influence of over-supply. The prices, as a fallout, have been negotiating a downward trend. With the supply exceeding the demand; sellers in Australia were resigned to lower their spot prices to entice buyers, and deals are also being done at lower rates as a result. The latest spot prices for the Premium HCC were down to around USD 215.50/MT FoB Australia. The downtrend in Coking Coal prices is expected to continue.

Semi finished: Following uncertainty in demand, the local billet & sponge prices volatile. However, the manufacturers in major markets reported limited inventories and are indicated further strong demand and less scope for price corrections.

— JSW Steel, India’s largest private steel producer has reduced its gas based DRI (sponge iron) offers to INR 22,000-22,500/MT (USD 353-361) for Mar’18 deliveries, which was last reported at around INR 23,000/MT; ex-plant Dolvi, Maharashtra.

— Indian sponge iron export offers reduced by USD 10/MT W-o-W, price assessment for 80 FeM sponge lumps stood at around USD 385/MT CPT Benapole (dry land port of Bangladesh & India) and USD 400/MT CFR Chittagong, Bangladesh.

— The latest Induction grade billet export offers to Nepal are quoted by Durgapur, East India based mills at USD 505-510/MT. Last week the offers were heard around USD 520-525/MT (ex-mill).

— In the initial days of week, Vizag Steel concludes billet export tender of 150*150mm (5,000 MT) at around USD 515-520/MT, FoB India and 75*75mm (10,000 MT) billet around USD 520-525/MT, FoB India.

— Indian domestic pig iron prices dropped by INR 500-1,000/MT (USD 8-15), the prices came under pressure in line with sharp fall in global Coking coal & domestic billet prices

— SteelMint’s pig iron export price assessment stood at USD 385-395/MT FoB India, USD 375-385/MT FoB Brazil and USD 360-365/MT FoB Black sea.

Finish-Long Steel : As per assessment, finish long steel market had reported price fluctuation of INR 200-800/MT over subdued demand on volatility in billet prices. In Raipur, Central India offers rise by INR 800-1,000/MT over increased inquiries for other states.

The current offer prices for 12 mm rebar are assessed – at INR 37,100-37,500/MT (+900) Ex-Raipur, INR 38,000-38,400/MT (+0) Ex-Durgapur, INR 38,100-38,600/MT (+200) Ex-Mumbai. The changes mentioned above on W-o-W basis.

While, the offers by large producers for 12-25 mm rebars are assessed at around INR 44,000-45,000/MT ex-Mumbai, Western region.

— The Wire rod (5.5mm) export offers for Nepal by medium mills in Durgapur are reported at around USD 595/MT as compared to USD 605-610/MT ex-mill which was heard a week ago.

Flat Steel Market: Indian flat steel prices remain unchanged this week owing to slow demand and limited trade activities experienced in domestic market.At present,demand from traders and end users has been slowed down. Earlier this month Indian manufacturers had raised flat steel prices by INR 1000/MT.

However on the other side supply constraints in domestic flat steel market has pushed the Indian manufacturers to keep the prices on higher side.As earlier reported by SteelMint , SAIL Bokaro steel plant faced fire breakout in its hot strip mill which was under maintenance is expected to resume the production by end of this week.

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/MT (ex-Mumbai) INR 49,000-50,000/MT (ex-Delhi) and INR 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 17 Mar 2018 (Week 11)

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

Indian Export Reference Prices as on 17th Mar’18

Prices in USD/MT
Source: SteelMint Research