Indian steel prices remain subdued in week 20 (08/05 to 13/05) owing to weak demand and low export orders. In order to offset this, several producers heard to have cut production.
Iron Ore Prices Slipped by INR 300/MT for May’17: Odisha based major merchant miners has cut iron ore prices by INR 300/MT for the May’17 deliveries. Low bookings by sponge producers over the slump in sponge prices have forced miners to cut prices.
Also tumbling pellet offers and decline in global iron ore prices another major fact behind iron ore prices corrections.
Coking Coal Prices: Coking coal prices sharply plummet to USD 189/MT, CNF India as the supply of coal has been resumed to full fledge after opening of Rail lines in Australia.
Downfall in Billet and Other Semis: Persisting sluggish demand is influencing the billet offers in the negative manner. In a week’s duration the correction of INR 100-800/MT was in domestic billet prices.
Indian Finish Steel Prices: Indian large long steel producers like RINL, SAIL has rolled over the prices for the May’17 Deliveries. Where by medium and small scale producers have cut prices by INR 100-700/MT, W-o-W. This fall in prices by medium producers; surged the gap between Large and medium scale producers to INR 4,000-5,000/MT .
While, in flat prices slashed; HRC by INR 1,000/MT and HR plates by INR 500/MT (both are Ex-Mumbai) following subdued demand and weak sentiments. Current Export offers for HRC are around USD 470-480/MT, FoB India; down by USD 10/MT.
Export Offers: Momentarily no export offers are heard from Indian ports which are making the market more sluggish as there is weak demand is domestic market with minimal export offers.
This is also influencing the manufacturers to cut the production. India’s production for sale of total finished steel has reduced by 8.6% M-o-M to 8.43 MnT in Apr’17 and crude steel production down by 2.7% M-o-M in Apr’17 to 8.11 MnT.
Raw material and Finished steel Prices in India as on 13 May’17 (Week 20)
| Products | Markets | Taxes | Prices in INR/MT |
W-o-W |
| Pellet Fe 63%, 6-20 mm | Ex-Barbil | ED 12.5%, VAT/CST Extra | 4,100 | -100 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET | 3,650 | -300 |
| Coking Coal, Premium HCC | CNF India | Prices in USD/MT | 189 | -57 |
| Scrap HMS (80:20) | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 21,250 | +250 |
| C-DRI 80 FeM | Ex-Raipur | ED 12.5%, VAT/CST Extra | 16,200 | -300 |
| P-DRI 80 FeM | Ex-Raipur | ED 12.5%, VAT/CST Extra | 14,850 | -300 |
| Pig iron Steel grade | Ex-Raipur | ED 12.5%, VAT/CST Extra | 24,500 | -400 |
| Billet 125*125 MM | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 26,700 | -100 |
| Rebar (12mm) | Ex-Mumbai(Medium Scale) | ED 12.5%, VAT/CST Extra | 31,200 | -100 |
| Ex-Mumbai(Large Scale) | ED 12.5%, VAT/CST Extra | 35,600 | 0 | |
| HRC (2.5-8 mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 40,000 | -1,000 |
| CRC(0.90mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 46,500 | -500 |
| HR Plate(5-10mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 39,000 | -500 |
| Wire Rod (5.5 mm) | Ex-Raipur | ED 12.5%, VAT/CST Extra | 29,500 | 0 |
| Structure ( 40 Angle) | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 31,500 | -100 |
Prices are in INR/MT, 1 USD = 64.14 INR
Sources: SteelMint Research and Customs
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