Indian Steel Market Weekly Snapshot

In the 1st week of Dec’19 (30th Nov-7 Dec’19), Indian mills announced hike in finished steel prices for domestic market amid fall in inventories. However the midsize mills reported limited response from the domestic buyers over uncertainty in the market.

As per SteelMint’s assessment, in these days the prices of semis products (Billet & Sponge iron) declined by INR 100-400/MT, while rebar prices fluctuated by INR 100-600/MT (USD 10). Meanwhile HRC/CRC registered price hike of around INR 300-500/MT in the traders market.

IRON ORE and PELLETS

On the heels of the annulment of auctions, the Odisha government has issued fresh Notice Inviting Tenders (NITs) for 20 lapsing merchant mine blocks. In another major development Ministry of Mines, Govt of India recently notified Odisha Mineral Exploration Corporation Limited (OMECL) as a separate legal entity to undertake operations of R P Sao mines (Guali) Iron Ore Block.

— PELLEX stable at INR 6,150/wmt (DAP Raipur) amid deals from the nearby region. Pellet deals for around 5,000- 6,000 MT reported from Durg to Raipur market at INR 5,900/MT ex-plant; normalizing for freight to Raipur at INR 6,150/MT (DAP Raipur). Bellary based pellet maker sold around 22,000-23,000 MT pellets at INR 6,150-6,200/MT (EXW) this week.

— KIOCL has concluded two pellet export vessels for 50,000 MT each consisting of Fe 64% content with less than 2% alumina at around USD 105/MT, FoB India. SteelMint’s assessment for Indian pellet export stands at USD 109-110/MT, CFR China for Fe 64%, 3% Al pellets up by USD 2-3/MT W-o-W.

COAL

Australian coking coal prices have remained stable this week, with transaction rates seeing only mild movements in recent days. Buying activity continues to be driven by the Chinese market, while buyers outside China are exhibiting lackluster interest in spot cargoes of coking coal. Nevertheless, the implementation of Chinese import restrictions beyond this calendar year remains ambiguous in the midst of fears that they may possibly extend until the Chinese New Year in late January.

Meanwhile, the Indian steel market is in dire need of government stimulus measures in the coming months, but for now coking coal prices hold steady.

— Latest offers for the Premium HCC grade are assessed at around USD 133.75/MT FOB Australia and USD 147.25/MT CNF India.

FERROUS SCRAP

Imported scrap Offers to India moved up this week following the upsurge in the global prices, while the buying activities showed a slight improvement in comparison to the previous 2 weeks, with few bookings being concluded.

Assessment for containerized Shredded from the UK, Europe and the USA to India climbed up to USD 290-292/MT, CFR Nhava Sheva, against around USD 285/MT levels in last week’s report. Few deals of shredded were concluded at USD 290-291/MT for CFR Nhava Sheva and CFR Mundra.

HMS scrap offers slightly inched up with few deals being concluded. HMS 1 from South African was sold in decent quantity at around USD 275/MT CFR Nhava Sheva, while another deal of South African origin was also reported at USD 280/MT CFR. Offers for HMS 1&2 (80:20) from Europe being offered at around USD 267-270/MT CFR. UAE origin HMS 1 super (no ci gi) from Dubai was reported at around USD 280/MT CFR Nhava Sheva. West African HMS 1&2 (80:20) is now being offered at around USD 270/MT CFR Goa.

FERRO ALLOY

— Silico Manganese prices increased amid short supply as most of the producers are operating at low capacity.

— Ferro Manganese Prices remained stable despite the Manganese ore shortage. Demand in the export market remains moderate.

— Ferro Chrome prices remained depressed owing to the selling pressure and low demand in the domestic and overseas markets.

— Ferro Silicon prices in Bhutan and Guwahati increased, as the inquiries from the export market is strengthening.

SEMI FINISHED

Indian domestic Billet offers plunged by INR 100-400/MT (USD 1-6) across the country on account of mis-match trade cycle amid slower demand in domestic market. Inline, Sponge iron prices fall slightly by INR 100-200/MT across regions following drop in Billet prices.

— Vedanta hikes domestic Pig iron price by INR 500/MT for Dec’19 on improved sales. Foundry grade offers reported at around INR 31,500-32,000/MT FoR (landed) Maharashtra.

— Vizag Steel had floated bloom export tenders of quantity 40,000 MT for end Dec shipment. The tender floated was for IS 2830 C20MMn Gr A grade and 150*150 mm size. According to SteelMint sources, the company has concluded the tender at around USD 406-409/MT, FoB India.

— RINL has invited a tender for export of 20,000 MT Bloom and 20,000 MT Billets. Interested bidders can submit their bids till 14:00 hrs on 10 Dec’19.

— SAIL’s Rourkela Steel Plant tender held yesterday (6th Dec’19) to sell about 7400 MT steel grade pig iron & had received improved response. The base price for the tender was quoted by RSP at INR 23,050/MT and 100% material sold out at INR 23,050-23,150/MT ex-plant.

— Indian sponge iron export deals reported to Bangladesh at around USD 285-288/MT CFR Chittagong & around USD 265/MT CPT Raxaul/Jogbani border, Nepal. The prices are mentioned for FeM 80 & lumps grade material.

— Nepal mills remained active to book Indian induction grade BILLET & deals learned at around USD 395/MT & for Wire rod at near to USD 450/MT, CPT Raxaul border.

— As per officials from Jindal Steel, panther shots (granulated pig iron) are not available for domestic sales due to healthy export orders. Meanwhile last deals for steel grade pig iron reported at around INR 24,000/MT ex-plant, Raigarh.

FINISH LONG

Finish Long Steel market has observed the limited trade volume in most of the regions where rebar price range has been contracted by INR 200-500/MT as per weekly assessment and west region based few particular markets notified with a moderate response like Ahmedabad/Goa/Mumbai & Bangalore.

However, major supplying regions reported minor selling pressure exists where discount level might get stretch up to a certain level or might consider minor price correction as production level is already adjusted as per market condition.

Further, ban construction activities in north region might get expands up to last week amid poor air quality shared as per trade sources.

— Current trade reference rebar prices (12-25 mm) through midsized mills assessed at INR 29,300-29,500/MT Ex Raipur (central region) & INR 30,800-31,200/MT Ex-Jalna (western region).

— Central region, Raipur based heavy structure manufacturers have maintained their offering price stable on a weekly basis and slightly stretched trade discount by INR 100-200/MT to INR 1100-1,600/MT and Current trade reference prices at INR 33,200-33,600/MT (200 Angle) ex-work.

— Trade discounts in Raipur wire rod is currently at INR 1,300-1,700/MT and trade reference prices stood at INR 29,500-30,000/MT ex-Raipur and INR 30,700-30,800/MT ex-Durgapur, size 5.5 mm.

FINISH FLAT

Domestic HRC prices continued witness upward momentum this week after major steel producers announce price hike by around INR 1,000-1,250/MT for Dec’19.

Current trade reference price for HRC (2.5-8 mm, IS2062) stands at INR 35,750-36,000/MT ex-Mumbai, INR 35,000-35,200/MT ex-Delhi, and INR 36,000-36,250/MT ex-Chennai. And the domestic CRC (0.9 mm, IS 513) trade reference prices on a weekly premise assessed at INR 40,000-41,000/MT ex-Mumbai, INR 39,750-40,000/MT ex-Delhi, and INR 39,750-40,500/MT ex-Chennai. Prices mentioned above are basic, and extra GST@ 18% will be applicable

However, traders had already raised offers by around INR 500/MT last week in anticipation of a surge in domestic flat steel prices & improved demand.

The market sentiments are improving over better demand and improve in inquiries, higher prices in global market and limited import bookings have kept domestic prices supported.

Reference Prices as on 7th December 2019 (Week 49)

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

Indian Export Reference Prices as on 7th Dec’19

Prices in USD/MT
Source: SteelMint Research