Weekly round-up: Semi-finished steel prices edge up on strong demand

The domestic steel market saw during week 2 ( 9 January – 14 January, 2023) semi-finished steel prices increasing in the range of INR 200-2,100/tonne (t).

Domestic induction furnace finished long steel offers witnessed an upward trend. Offers increased by up to INR 1,300/t w-o-w. Trade reference prices for HRC and CRC increased in the range of INR 200-1,100/t across regions.

Iron ore and pellets

• SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 9,700/tonne (t) DAP Raipur, stable compared to the last assessment on 10 January, 2023. Around 18,000 t of pellets deals have been concluded in this publishing window.
• India’s pellets export trade has improved over the previous week on active trades of around 150,000 t. SteelMint’s India pellets (Fe 63%, 3% Al) export index, FOB east coast, was recorded at $117/t, up by $8/t w-o-w.
• SteelMint’s weekly price index of India’s low-grade iron ore fines (Fe 57%) exports stood at $70/tonne (t) FOB east coast on 12 January, 2022, up $4/t w-o-w on active deals of 200,000t. As per sources, restocking by steel mills in China before the Lunar New Year holidays led to the rise in prices this week.

Coal

• Australian hard coking coal prices fell by $5/t w-o-w to $309/t FOB and $321/t CNF India as Indian buyers are stocked up. While China has allowed Australian coal imports, its demand remained slow due to the upcoming Lunar New Year Holidays.
• Portside RB3 (4800 kcal/kg NAR) grade coal prices fell by INR 200-300/t to INR 11,900/t ex-Vizag with a fall in demand from sponge iron sector.
• High-CV RB1 (6000 kcal/kg NAR) grade coal prices fell marginally by $8/t to $172/t FOB amid muted demand in the market.

Ferrous Scrap

• Gujarat-based induction furnace (IF) steel manufacturer, Mono Steel India Limited, recently bought a couple of US-origin bulk scrap cargoes. Each cargo was 30,000 t, out of which HMS, shredded and bonus material were booked at $460/t. Another vessel was booked at $450/t for January-February, 2023 shipment, SteelMint learnt from sources.
• Imported scrap buyers are cautious as prices are unstable. However, limited deals were recorded for the containers. Some buyers in India kept a close watch on the market dynamics before taking procurement decisions, as bid-offer disparity still exists.
• SteelMint’s assessment for Europe-origin shredded scrap offers to India is at $460/t CFR Nhava Sheva, up by $5/t w-o-w.

Ferro Alloys

• As on 13 January 2023, Indian silico manganese prices rose by 3% w-o-w to INR 80,000 exw Durgapur and INR 80,200/t exw Raipur. Prices decreased due to worsening liquidity problems and a fall in domestic demand and a bearish market overseas.
• Indian ferro manganese prices were rangebound w-o-w to around INR 80,500/t exw Durgapur, nearly stable at INR 81,000/t exw Raipur, dropped by 1% w-o-w, assessed on 13 January 2023. Rangebound ferro manganese prices are a result of a mismatch between supply and demand.
• According to SteelMint’s assessment on 12 January 2023, ferro chrome producers were offering at around INR 107,000-108,000/t exw Jajpur, an increase of INR 3,600/tonne w-o-w. Furthermore, some producers offered higher prices to match the export offers, but buyers did not accept the offers completely.
• Indian ferro silicon prices remained stable this week with a marginal hike to follow suit of Bhutan’s offer. According to SteelMint’s assessment on 13 January, 2023, ferro silicon smelters were offering at around INR 120,000/t exw from both Guwahati and Bhutan.

Semi-finished

• Indian semi-finished steel prices increased as per SteelMint’s assessment. The domestic billets prices increased by INR 400-2,100/t across region with a major increase of INR 2,100/t seen in Mumbai. Similarly, sponge iron prices also increased by INR 200-1,150/t w-o-w.
• Vizag Steel has floated an ocean sale export tender for 20,000 t of steel billets (90x90mm, C20MMn Gr. A). The due date for the tender is 23 January, 2023 and the delivery is scheduled for 5 March, 2023.
• SAIL conducted an auction for 10,950 t (60 kg and 52 kg, full length) of commercial rails on 7 January, 2023 from its Bhilai Steel Plant (BSP). Out of the total quantity, only 750 t was booked, of which 60 kg rails were approved at INR 42,800/t ex-work and 52 kg rails were unsold, sources informed.
• RINL has floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP) FOB ST delivery against 100% advance payment terms. The due date of the tender is 20 January, 2023 and the delivery is scheduled for 28 February this year.

Finished long

India’s induction furnace (IF)-route finished long steel market saw limited purchase enquiries at the start of the week. However, trades escalated during the mid-week after a drop in prices specifically in rebars and wire rods steel. Mills started offering discounts over and above offer prices as per quantity and payment terms. Bulk purchases were made by traders as well as end-users post-price correction in the market. Subsequently, suppliers reverted back to higher offer prices after they received ample booking orders and are currently busy with the dispatching of materials, SteelMint learned.

• In rebars steel prices were sharply hiked in the range of INR 100-1,300/t w-o-w in various regions, SteelMint’s assessment showed.
• The trade reference price of Fe 500 grade rebars manufactured via the IF-route for 10-25 mm size was assessed at INR 52,300-52,700/t exw Raipur, INR 56,500-57,000/t exw Jalna.
• Trade discount given by Raipur-based heavy structural steel manufacturers is around INR 2,000-2,500/t and trade reference price of 200 mm angles stood at INR 58,100-58,500/t exw Raipur.
• Trade discounts in Raipur wire rods given by resellers is around INR 500-600/t and trade reference price at INR 52,400-52,800/t exw Raipur and INR 52,500-52,900/t exw Durgapur, size 5.5 mm.
• Trade prices of BF-route rebars rose w-o-w across major markets amid good buying interest during the week. Leading primary mill, JSPL announced a hike of INR 1,500/t in rebars list prices, marking this as an increase for the second time during the month, while other mills are likely to follow suit in coming days. However, market participants are still concerned about shortage in some sizes of rebars as mills are having lower inventories at their yards.
• SteelMint’s weekly price assessment for rebars (12-32 mm, BF-route, IS 1786, Fe500D) edged up by INR 100/t w-o-w to INR 59,500/t, exy-Mumbai, excluding GST at 18%.

Finished flat

• Trade reference prices of flat steel products continued to increase this week. Trade prices are now treading close or even higher than the list prices for some products, hinted sources. Thus, there is a possibility of an interim hike in the next week.
• Automobiles are doing good as per the performance reports while government infrastructure and construction projects are also coming out with demand. This is going to lend support to prices in the near-term, sources opined.
• On the exports front, SteelMint’s HRC (SAE1006) export index stood at $615/t FOB east coast, rising to a six-month high this week. Increasing HRC export offers and mills in other countries raising their HRC prices led to higher quotes by Indian mills as well. Also, European buyers are actively stocking up to replenish inventories. This is also providing more export opportunities to Indian mills with rising counter quotes in succeeding inquires.