During the week-34 (17-24th Aug’19), Indian domestic trade activities reported mix response from the domestic buyers over uncertainty in the market. Offers surged in the second half of week, however due to holiday mood trades remained hand to mouth.
As per SteelMint’s assessment, in these days the prices of Semis products – Sponge iron & Billet fluctuated by INR 100-500/MT, while Finished long steel prices dropped by INR 200-600/MT (USD 3-8) through the mid size mills.
Also, the Flat steel prices moved down by around INR 1,000/MT (USD 14) through the traders end owing to limited demand.
IRON ORE & PELLETS
Essel Mining – a major iron ore mine in Odisha has reduced its offers for iron ore lumps by INR 200/MT (USD 3/MT) wef from 24 Aug’19. Other merchant miners from Odisha expected to revise soon.
— NMDC (C.G.) this week lowered Iron ore prices by INR 200/MT in both lumps and fines and INR 230/MT in DRCLO.
PELLEX- Raipur based pellet Index remains stable at INR 6,100/wmt (DAP Raipur) due to limited trades reported. However, Raipur based pellet makers are offering pellet at INR 6,200/MT ex-plant. East India based pellet manufacturers have decreased their offers by INR 300-400/MT to INR 5,200-5,300/MT (ex-Durgapur, GST extra) as against INR 5,500-5,700/MT towards the beginning of this week. Southern India based pellet plants witnessed stable for the week at INR 6,250/MT (ex-Bellary).
— No export transactions were reported to China amid sluggish Chinese demand. Pellet Export realization stands stable at USD 96-100/DMT FoB (Al 3%) due to the absence of bids from China.
— India’s largest private multi-port operator; Adani Ports and Special Economic Zone Limited (APSEZ) has announced to buy 65-70% stake in Krishnapatnam Port Company Ltd. The port is currently owned by the Andhra Pradesh government.
COAL
Australian coking coal prices edged down again this week – after remaining mostly stable and steady over the first three days – even with a resumption of fresh trading activities in the Chinese spot market. In China, multiple deals for both low- and medium-volatile grades of Australian premium hard coking coal have been concluded in the last few days on CFR China-price basis.
However, the Indian market continues to remain overtly bearish on the back of low demand from the downstream steel industry, which’s hugely impacted by a significant slowdown in the domestic automobile sector. Meanwhile, industry experts anticipate coking coal supply to tighten in the coming months, with large Australian miners reducing their output.
— Latest offers for the Premium HCC grade are assessed at around USD 153.00/MT FOB Australia and USD 169.00/MT CNF India.
SCRAP
A week of total silence was observed for imported scrap in India amid limited support from domestic fundamentals. Despite imported scrap prices have been under downtrend since almost 2 months and touched a new record low, domestic scrap remained far competitive to serve the limited demand at the moment. With releasing of stimulus to the economy by the Government, few participants have turned hopeful for recovery in the near terms.
— Assessment for containerised Shredded from Europe, UK and USA stand at USD 295-300/MT, CFR Nhava Sheva, down USD 5/MT further against last week, while no major trade was reported. Few inquiries from buyers were made at around USD 290-295/MT, CFR.
— HMS offers from Dubai remained in the range USD 270-280/MT with no major deal being witnessed. South African HMS 1 offered at around USD 280-285/MT, CFR Nhava Sheva, while West African HMS 1&2 (80:20) bids reported in the range or below USD 265-270/MT, CFR.
FERRO ALLOYS
— Silico Manganese prices inched down marginally in Raipur. Producers have had to continuously cut down prices on lacklustre demand.
— Ferro Manganese demand remains low and the market prices are gradually falling again in line with rupee depreciation and low demand. Moreover, the market is still affected by the imports from Malaysia and South Africa.
— Indian Ferro Chrome prices have gone up marginally from last week to adjust with the export price after the Rupee depreciation.
— Ferro Silicon Producers have maintained the prices despite low demand and thin trading activities. However, few producers were also heard to be undercutting the prices to entice the buyers.
SEMI FINISHED
Indian Semi finished market observed volatility in prices on subdued demand. Sponge offers fluctuated in the range of INR 100-500/MT (USD 3-7), in which Durgapur- eastern India registered surge in price range by INR 500/MT, while in remaining markets it inched down, as per assessment.
— Mid sized mills export offers to Nepal assessed at around USD 415-420/MT for Wire rod & around USD 355/MT for Billet, ex-plant at Durgapur, eastern India.
— Small parcels of Indian Sponge iron (79-80 FeM, 95-100% lumps) exports concluded during mid-week, for Nepal at around USD 225/MT ex-works & for Bangladesh at USD 255-260/MT CPT Benapole (dry port of India & Bangladesh), equivalent to USD 275/MT CFR Chittagong, Bangladesh.
— Indian private pig iron producers have reduced prices by INR 300-900/MT (USD 3-13), W-o-W. Latest offers for steel grade is hovering at INR 23,800-24,000/MT ex-Raipur, INR 22,700-23,000/MT in Jajpur, INR 23,600-24,000/MT ex-Durgapur & INR 23,400-23,600/MT ex-Bokaro (Jharkhand).
— Neelachal Ispat offered Steel (N1) grade pig iron at INR 22,500/MT (USD 314) & Foundry (N2) grade at INR 23,000/MT (USD 321), ex-Cuttack, Odisha.
— TATA Metaliks Limited (TML) has reduced Foundry pig iron offers by INR 800/MT (USD 11) to INR 29,600/MT (USD 414) ex-plant, Kharagpur, eastern India.
— An Indian mill is learned to have concluded a 30,000 MT pig iron export deal to SE Asia at around USD 330-335/MT, FoB; for Sept shipment.
— Jindal Steel has reduced pig iron offers by INR 200/MT and reported steel grade at INR 23,500-23,800/MT ex-plant, Raigarh, Central India.
— SAIL conducted auction for around 2,400 MT steel grade pig iron on 19th Aug’19 from its Rourkela Steel plant (eastern India). The auction received average response as close to 60% was sold out at the base price of INR 24,200/MT (USD 339) ex-plant.
FINISH LONG
As per weekly analysis, Indian Finish Long steel market remained dull as prices dropped by INR 200-600/MT (USD 3-9). However since couple of days, significant improvement has been notified in major supplying regions like central, east & western India and it’s been assuming among market participants that slight improvement can be registered or there are less chances for price reduction in overall regions due to tight raw materials (Sponge iron & Billet) as well short supply of scrap owing to unviable imports.
— Current trade reference rebar prices (12-25 mm) assessed at INR 29,500-29,700/MT Ex-Raipur & INR 31,000-31,200/MT Ex-Jalna. All prices mentioned above are basic & excluding GST.
— Central region, Raipur based heavy structure manufacturers have maintained trade discount around INR 1,000-1,500/MT stable against last week and current trade reference prices at INR 34,500-34,900/MT (200 Angle) ex-work.
— Trade discounts in Raipur Wire rod currently hovering at INR 1,300-1,500/MT and trade reference prices stood at INR 30,000-30,500/MT ex-Durgapur & INR 29,500-29,500/MT ex-Raipur, size 5.5 mm.
FLAT STEEL
Ongoing monsoon season and lower consumer spending leads to gloomy sentiments in Indian flat steel market. Trade segment is expecting heavy discounts and rebates from major steelmakers to improve buying activities in domestic market. Meanwhile few sources also shared that major Indian mills are scheduling annual maintenance shutdown to offset domestic demand.
On the other hand mills are actively engaged in HRC exports over weakening steel prices in domestic market. Indian steel mills have corrected their HRC export offers to Vietnam and Nepal for Sep-Oct shipments since Indian steel mills are targeting overseas nations to offload surplus inventory present in domestic market.
As per SteelMint price assessment trade reference prices for HRC (IS2062, 2.5-8 mm) is currently at INR 37,000-37,500/MT ex-Mumbai, INR 36,500-37,000/MT ex-Delhi.
This week domestic CRC (0.9 mm, IS 513) witness decline in few major markets over poor sales and weak purchases. Thus trade references prices on weekly basis are currently hovering around INR 41,000-42,000/MT ex-Mumbai, INR 40,000-41,800/MT ex-Delhi Prices mentioned above are basic and extra GST at 18% will be applicable.
Reference Prices as on 24th August 2019 (Week 34)
| Products | Regions | Taxes | Prices in INR/MT | W-o-W |
| Pellet Fe 63%, 6-20 mm | Ex-Durgapur,Delivered | GST at 5% Extra | 5,250 | -500 |
| Iron ore 6-40 mm, Fe 65% | Chhattisgarh | Excluding Royalty, DMF & NMET. GST @ 5% extra | 2,900 | -200 |
| 5-18mm, Fe 63% | Odisha | Ex-mines, Incld Royalty, DMF & NMET, GST extra | 3,800 | 0 |
| Fines Fe 63% | Odisha | Ex-mines, Incld Royalty, DMF & NMET, GST extra | 2,050 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 170 | -3 |
| Silico Manganese (60-14) | Ex-Raipur | Excluding GST | 63,150 | -1,100 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 21,500 | +200 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 17,000 | -200 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 15,800 | -200 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 23,900 | -100 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 26,150 | +300 |
| Rebar (12-25mm) | Ex-Raipur (Medium Scale) | GST at 18% Extra | 29,500 | 0 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 30,100 | 0 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 32,300 | -300 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 37,250 | 0 |
| CRC (0.90mm) | Ex-Mumbai | GST at 18% Extra | 41,500 | -1,250 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 37,250 | -750 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices as on 24th Aug’19
| Commodity | Particular/Delivery | Size and Grade | Prices | 1W | 1M |
| Pellet | FOB India | 6-20 mm, Fe 64% | 100 | 101 | 119 |
| Scrap | CNF India | HMS(80:20), Europe | 275 | 285 | 293 |
| Billet | FOB India | 150*150, IS 2830 | 398 | 398 | 410 |
| Sponge Iron | CNF Bangladesh | Lumps, FeM 80, India | 275 | 275 | 293 |
| Pig Iron | FOB India | Steel Grade | 335 | 350 | 350 |
| HRC | FOB India | 2.5-8mm, IS 2062 | 467 | 467 | 508 |
Prices in USD/MT
Source: SteelMint Research
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