JSW steels, India’s largest steel producer in terms of production, has rolled over long steel prices for October deliveries. JSW has an annual output of 15.8 million tonnes crude steel in FY17, surge by 26% Y-o-Y.
According to sources, JSW’s re- bar offers for 12-32 mm are hovering at INR 33,500-34,000/MT (USD 515-523) and 5.5mm Wire rod offers at around INR 37,000-37,500/MT (USD 570-575) ex- Mumbai basis, excluding GST of 18%. These levels are almost similar to previous month’s levels.
Prices have been kept unchanged on lower long steel production and export commitments, according to market sources. Notably JSW’s long steel production has dropped by 7% in second quarter of FY18, as net sales realization for flat steel is much higher than longs.
Export orders
SteelMint learned from market sources that JSW has sufficient export orders for re- bars and wire rods that they do not have pressure to sell in domestic market. Last export offers for re-bar were assessed at USD 550-560/MT FOB and wire rod at USD USD 585-590/MT FOB. At present there are no firm offers from JSW as company is waiting for market to take a proper direction.
Long steel production fall in July-Sep (Q-o-Q)
JSW Steel’s long steel production stood at 0.77 MnT in Q2 FY18 compared to 0.83 MnT in Q1 FY18, down 7% Q-o-Q basis. However on yearly premises it fall by 3% compared to Q2 FY17.
India domestic consumption drops – JPC
According to provisional numbers released by Joint Plant Committee (JPC), India’s overall domestic consumption has decreased by 1% in September (7.449 MT) over August 2017. Market relates this drop to new tax structure introduced by government in the month of July and seasonal slowdown.
Industry participants are hopeful that domestic demand will increase in coming months due to government’s spending on infrastructure.
JPC also reported an increase of 20.8% in steel exports and a drop of 19.4% in imports during September compared to August 2017.
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