SteelMint | Morning Brief

Iron ore & pellet –

• SteelMint’s bi-weekly domestic pellet index “PELLEX ” remained stable at INR 14,550/t DAP Raipur as seen in a recent deal. Single deal of 5,000 t pellet was reported in this publishing window from Odisha at INR 14,200/t DAP, Raipur.
• NMDC is planning to conduct two iron ore auctions for around 180,600 t from its Bacheli and 50,400 t from Kirandul mines, Chhattisgarh. Out of the offered quantity, 16,800 t would be DR-CLO and 163,800 t fines. Both auctions are scheduled for 30 Apr ’21.

Coal –

• Australian hard coking coal prices remained steady this week, amid lower price indications and relatively fewer bids. Latest prices for the Premium HCC and the 64 Mid Vol HCC grades are assessed to be around $110.00/t and $105/t FOB Hay Point, Australia
• In a confirmed deal, 4,000 tonne of South African RB2 (5500 NAR) coal has been traded at INR 6,550/t ex-Gangavaram.

Scrap & Metallics –

• Benchmark sponge iron (P-DRI) prices dropped by INR 100-200/t to INR 29,250/t ($390), exw Raipur, Central India. Weak demand in the spot market resulted in a fall in prices. Sources are expecting prices to remain under pressure due to improved supply, low demand & competitive offers from outside plants.
• SteelMint’s domestic steel scrap index has moved up to INR 37,800/t DAP Mandi Gobindgarh. Average transactions and improved buying amid optimistic market sentiments led to this hike in bids.
• India’s imported scrap trade has slowed down due to stringent lockdown restrictions that have been implemented in different parts of the country in view of the exponential growth in COVID cases. Shredded offers in containers remain mostly firm at $460-465/t CFR Nhava Sheva basis.
• Ship-breakers at Alang are staring at a huge financial crisis, with activities having come to a halt in face of the second wave of COVID cases.
• Japanese scrap offers have spiked by $20 before the Golden week holidays and offers have increased to $520/t CFR levels. Trades of around 3,000 t have been concluded recently at $505/t CFR basis for Japanese HRS 101-grade scrap.

Semi-finished steel –

• An Indian state-owned mill has reported having sold 30,000 t billets through a tender. According to SteelMint sources, the tender was concluded at $598-600/t, FoB levels. The expected scheduled shipment is mid-Jun ’21, with China as the likely destination.
• SteelMint’s daily billet index has been assessed at INR 41,850/t (-50) exw Raipur on 23rd Apr ’21, 18:00 IST. The index inched down in view of subdued demand, however producers are not reducing the prices on expectations of disturbed production due to the oxygen crisis and limited labour availability.
• SteelMint’s current assessment for billet imports in SE Asia is $645-650/t CFR Philippines, up by $5-10/t w-o-w.

Finished steel –

• Major Indian steel mills have collectively booked around 50,000 t CRC for Europe at $1,330-1,350/t CFR for May end shipments.
• India’s leading ERW pipe manufacturer is likely to hike pipe prices by INR 2,000/t ($27) in the first week of May ’21. The increase in price is being attributed to an increase in Hot-Rolled Coil prices.
• This week’s domestic HR-plate prices witnessed a steep increase in the trader market by around INR 1,000-1,500/t. This is basically in anticipation of a hike that is likely to be announced by major mills in the first week of May ’21.
• India’s largest automaker-Maruti Suzuki India Ltd. is considering fewer shifts at its Gurugram and Manesar plants because of COVID-19 protocols, amid growing concerns that demand may fall if states persist with stringent restrictions to control the pandemic.

Ferro alloys –

• Pursuant to the decision taken during the high-level meeting on 22nd Apr ’21, chaired by Hon’ble CM of Meghalaya on the power crisis, the load shedding by Meghalaya Electric Corporation Ltd (MeECL) will become effective from midnight of 24th Apr ’21 and is likely to continue till further announcements.
• OMC reduced the base price of chrome ore by around 25% m-o-m for the auction held yesterday in line with the falling ferrochrome prices. Only 42% of 35,100t received bids at the floor price.