Weekly round-up: Semi-finished prices volatile amid moderate demand

Iron ore and pellets

SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 8,900/tonne (t), stable compared to the last assessment on 13 December, 2022. Around 5,000 t of deals were reported in this current publishing window. Buyers are now showing interest in pellets. However, market participants are still in a wait-and-watch mode.

Odisha Mining Corporation (OMC) conducted an iron ore auction (1.15 mnt of fines and 0.65 mnt of lumps) on 16 December, 2022. According to market sources, nearly 1.11 mnt of fines and 0.442 mnt of lumps have been booked while the remaining lots were unsold. OMC’s iron ore production increased to 27 mnt in FY22 compared to 13.06 mnt in FY21.

The Goa government recently auctioned off four iron ore blocks. As per the latest updates, Vedanta, erstwhile Sesa Resources Limited, has won the Bicholim iron ore mineral block, Salgaoncar Shipping has won the Sirigao-Mayem iron ore mineral block and Nana Bandekar has won the Monte De Sirigao iron ore mineral block.

NMDC conducted an auction for 600,000 t of iron ore from its Donimalai mines in Karnataka on 13 December, 2022. According to sources, 200,000 t of lumps (10-40mm, Fe61%) and 400,000 t of fines (Fe59%) were booked at INR 2,751/t and INR 2,056/t, respectively. All prices exclude royalty, DMF, and NMET charges.

India’s pellets export trade slowed down against last week, despite the index witnessing slight improvement. SteelMint’s India pellets (Fe 63%, 3% Al) export index, FOB east coast, was recorded at $106/t, up by $3/t w-o-w.

Coal

Australian hard coking coal prices rose to $258/t FOB and $273/t CNF India amid marginal improvement in restocking demand from India.

Portside RB3 (4800 kcal/kg NAR) grade coal prices remained unchanged at INR 12,700/t ex-Vizag with limited change in demand dynamics.

High-CV RB1 (6000 kcal/kg NAR) grade coal prices rose by $6/t to $45/t FOB amid slight improvement in demand sentiments in the global market.

Ferous scrap

India’s scrap imports slowed down this week, due to slow finished steel demand. Imported scrap prices remained unchanged as the weekend approached. However, trade slowed down as buyers are waiting for clearer market directions.

Imported scrap prices are falling due to slow trading activity in the absence of Turkey, a major scrap buyer. Suppliers are looking to sell material at high prices before the winter holidays.

SteelMint’s assessment for UK/EU-origin shredded is now at $445-450/t CFR.

Ferro alloys

In SteelMint’s assessment on 16 December 2022, Indian silico manganese prices  inched up by 1% w-o-w to INR 74,200/t ex-Durgapur, INR 73,900/t ex-Vizag, and INR 74,000/t ex-Raipur. The fluctuating trends in raw materials in the local steel market caused prices of silico manganese to rise gradually.

As on 16 December 2022, Indian ferro manganese prices were nearly stable w-o-w to INR 74,200/t ex-Durgapur and ex-Raipur at INR 74,500/t. Demand for special steel remained flat, although ferro manganese prices held steady.

According to SteelMint’s assessment on 15 December, Indian ferro chrome prices rose sharply by INR 2,800/t w-o-w to around INR 97,500/t exw-Jajpur following a hike in Chinese prices. However, some producers have begun to offer higher prices as well amid good inquiries from domestic and export markets.

SteelMint’s assessment on 16 December, ferro silicon (70%) prices were hovering at around INR 118,700-123,500/t exw- from both Guwahati and Bhutan, down due to limited trade.

Semi Finished

The semi-finished steel market observed volatility in prices as demand was moderate during the week which led to price fluctuations on offers floated through the mid-sized mills.

Domestic billets prices fluctuated by INR 100-1,000/t following sponge iron offers which were also volatile by INR 100-800/t in weak trading.

• SAIL-IISCO (ISP) Burnpur plant held an auction for 150 tonnes (t) of steel grade pig iron on 16 December, 2022. The entire quantity was booked at an average price of INR 39,100/t exw.
• Tata Steel subsidiary Neelachal Ispat Nigam Limited (NINL) has scheduled an auction for around 7,000 t of pooled iron fines from its Kalinganagar plant in Odisha on 23 December, 2022.
• Vizag Steel has floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP) on FOB ST delivery against 100% advance payment terms. The due date of the tender is 20 December, 2022, and the delivery is scheduled for 5 February, 2023

Finished Longs

• India’s finished long steel market of IF route witnessed a need-based buying in first half of the week vary across region wise while the demand slightly improved later the week by seen increased in steel billet prices specifically in north region. Market was trying to stabilize in the spot market. Although, due to gradually rising inventories in the mills as healthy trades were lacking so, manufacturers preferred either to marginal decline in offers or adjusting trade discounts depending upon payment and delivery terms. However, market participants hoping that prices are likely to remain supported in the near term.
• On a weekly basis, In rebar steel prices shows mixed trend vary region wise, increased marginally by INR 300/t in few markets of all regions except in southern where down by up to INR 700/t as SteelMint assessment shows.
•  The trade reference price of Fe 500 grade rebar manufactured via the IF route for 10-25 mm size was assessed at INR 48,000-48,400/t exw Raipur, INR 52,700-53,200/t exw Jalna.
• Trade discount given by Raipur- based heavy structural steel manufacturers is upto INR 2,000/t and trade reference price of 200 mm angles stood at INR 53,800-54,200/t exw Raipur.
• Trade discounts in Raipur wire rod given by resellers is around INR 700-800/t and trade reference price at INR 48,300-48,500/t exw Raipur and INR 48,800-49,000/t exw Durgapur, size 5.5 mm.
• Two leading primary mills raised their list prices of rebars by INR 500/t earlier this week. Following this, BF route-rebars trade prices saw an uptrend and remained supported by an improved buying interest. Furthermore, demand from northern provinces stayed strong with resumption of construction activities.
• This week’s assessment for rebars (12-32 mm, BF-route, IS 1786, Fe500D) rose by INR 400/t to INR 56,500/t, exy-Mumbai, excluding GST at 18%.

Finished flats

Trade reference prices of hot-rolled (HR) coils, plates and cold rolled (CR) coils dropped initially this week. However, towards the weekend, distributors refrained from dropping prices. This kept the coated steel product prices pegged to last week’s levels.

Sentiments were elevated by mid-week amid improved overseas market activities, and indications of a price increase by mills for domestic sales started floating, sources informed. Thus, distributors refrained from reducing prices any further, especially for HR and CR products in the traders’ market.

• SteelMint’s India HRC (SAE1006) export index increased by $25/t to $560/t FOB India as assessed on 13 December. Furthermore, mills had withdrawn their export offers by mid-week, and are likely to raise them further in the near term. “The increase in overseas trade activities and export offers after the 15% export duty removal on 19 November, will give way to domestic price increases in India,” observed some distributors.

Prices are exw & exclusive of GST