Iron ore –
- India’s leading iron ore miner NMDC produced 3.13 mn t iron ore, up by 74% as against 1.8 mn t in Apr ’20, SteelMint learned from its BSE filing. However, on a monthly basis, production volumes fell against 4.57 mn t in Mar ’21 due to reduced shifts amid the second wave of COVID.
- NMDC supplied 386 rakes (1.48 mn t) of iron ore from its Chhattisgarh mines in the month of Apr ’21, as against 504 rakes (1.94 mn t) a month before, according to railway movement data maintained with SteelMint. Their dispatches reduced as it felt the impact of second wave of COVID which resulted in reduced number of shifts for operations.
Scrap & metallics-
- PSU steel major SAIL held an auction from its Bhilai Steel Plant (BSP) for 10,650 t pig iron on 03 May ’21. The entire quantity was booked at a weighted average price of INR 39,100/t exw, recording a drop of INR 200/t compared to the previous auction held by BSP.
- SteelMint’s domestic steel scrap index has considerably increased to INR 38,700/t DAP Mandi Gobindgarh. Improved semi-finished steel trade volumes along with improving conversion spread lifted bids for scrap purchase
- SteelMint’s assessment for Japanese H2 stood steady at $480/t CFR basis, witnessing a stability w-o-w. Imported scrap market remained quiet amid holidays.
- Benchmark sponge iron (P-DRI) prices gained by INR 600/t to INR 29,400/t ($398), exw Raipur, Central India. The demand remained active following a sharp surge in billet prices by INR 900/t, d-o-d.
- Japan’s ferrous scrap exports witnessed an increase of 13% m-o-m in Mar’21. The country exported 0.7 mn t of scrap in Mar ’21 as against 0.62 mn t in Feb ’21, as per the data maintained with SteelMint. Vietnam overtook South Korea to become the largest importer at 0.24 mn t.
Semi-finished steel –
- SAIL’s defective steel auction from Bhilai Steel Plant, conducted on 30 Apr ’21 for 20,319 t received bids at INR 37,450/t exw Bhilai basis. Bids fell by INR 650/t compared to the previous auction held on 22 Apr.
- Iranian mills exported around 9 mn t steel in the last fiscal year (ended on 20 Mar ’21), down by 13% y-o-y, as per the recent data released by Iranian Steel Producers Association (ISPA). Semi-finished steel exports stood at 6.1 mn t (-11% y-o-y) with billet and blooms exports falling by 6% while finished steel exports were recorded at 2.83 mn t (-18% y-o-y).
- SteelMint’s billet index increased by INR 900/t to INR 42,500/t exw Raipur on 03 May ’21. The index rose on account of active demand from local buyers even as only a few mills resumed operations. Total 4,700 t billet trades occurred yesterday as against 4,000 t on 01 May ’21. Sources are expecting prices to remain supported in line with the price hike announcement made by primary mills.
Finished steel –
- The gap between HRC and CRC spreads in India was around INR 15,000/t at the beginning of May ’21 after the mill announced a steep hike in prices. However, from Jan.’21 the difference between the two was around INR 11,000/t. The gap is abnormally wide since the normal gap was around INR 4,500-5,000/t.
- Indian steelmakers have collectively booked around 30,000 t CRC last week for exports to Europe in the range of $1,375-1,380/t CFR basis for June ’21 shipments, SteelMint learned from its credible sources.
- Two major Indian steel mills have collectively concluded an HRC export deal of about 30,000 t for UAE at $985-990/t CFR basis for June ’21 shipments, SteelMint learned from its authentic trade channels.
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