SteelMint | Morning Brief

Iron ore & pellets –

• KIOCL concluded an export deal for pellets (Fe 63.5% and 2-2.1% Al) via a tender process. The deal was heard to be concluded at around $205/t FoB for a quantity of around 110,000t. KIOCL’s pellet export price has increased by $13 m-o-m.
• SteelMint’s bi-weekly domestic pellet index “PELLEX ” increased sharply by INR 1,200/t to INR 14,700/t DAP Raipur in recent deals. Around 47,000 t pellets deals have been reported in this publishing window, out of which deals for around 22,000 t were booked from outside Raipur based supplier at INR 14,200/t DAP, Raipur.
• NMDC increased the base price for yesterday’s auction from Kumarswamy mines. Base price for fines moved up by around INR 700/t and that for lumps by about INR 800/t.

Coal –

• Port-side prices for South African RB2 coal remain relatively unchanged towards the end of the week. At Gangavaram RB2 prices have been assessed at INR 6,600/t.

Scrap & Metallics –

• SteelMint’s benchmark sponge iron (P-DRI) prices rose further by INR 200/t to INR 30,900/t ($415), exw Raipur, Central India. However, the demand remained moderate as buyers resisted purchasing on higher offers and are expecting these offers to be unsustainable.
• Alang ship breaking scrap prices hit an all-time high on oxygen supply constraints.
• SteelMint’s domestic steel scrap index increased sharply to INR 38,100/t DAP Mandi Gobindgarh. Strengthening prices supported by bullish sentiments led to d-o-d price changes. However, increasing price levels kept buyers cautious and transactions remained moderate.
• Shredded offers to India remain generally firm at $460-465/t CFR Nhava Sheva basis. UAE origin HMS1 is now being offered at $440-445/t CFR Nhava Sheva basis.

Semi-finished steel

• SteelMint’s daily billet index has been assessed at INR 43,300/t (+800) exw Raipur on 16th Apr ’21, 18:00 IST. The demand remained active from the outside state-based rolling mills i.e. Jalna, Maharashtra, which led to a surge in prices in Raipur, Central India.
• Vizag Steel, a state-owned steelmaker, has floated an ocean sale export tender for 90,000 t blooms (150x150mm, 3SP/4SP grade). The tender floated is against 100% advance payment terms with the due date on 20 Apr ’21.

Finished steel –

• China Steel Corporation (CSC) – Taiwan’s leading steel company raised its steel product prices by an average of 8.1% for May sales.
• Severstal’s share of export shipments increased to 52% in Q1 CY ’21 from 35% in Q4 ’21, basically due to the favourable export price dynamics and higher demand.
• Europe’s ArcelorMittal lifted its coil prices further by Euro 50/t ($60).
• ArcelorMittal Nippon Steel (AM/NS), India announced its third hike in list price of HRC by INR 1,500/t and CRC by INR 3,250/t.
• APL Apollo Tubes Limited, increased pipe price by INR 2,000/t to INR 64,000/t ($858/t) FoR Chhattisgarh, yesterday. This is the third hike by the company for Apr ’21 sales.
• China’s crude steel output rose by 19% y-o-y basis, despite autumn production curbs, to 94.02 mn t in Mar ’21.

Ferro Alloys –

• Tata Steel mining arm, Tata Steel Mining Limited (TSML), formerly TS Alloys Limited, has made an announcement regarding doubling of its ferrochrome production capacity from 450,000 t to 900,000 t per year in view of the growing stainless steel demand in the country and projected rise in global demand and exports.