Weekly round up: Semi-finished steel prices see uptrend, flats remain rangebound

The domestic steel market saw positive price trend during week 10 ( 6 March- 11 March, 2023). Semi-finished steel prices increased in the range of INR 50-400/tonne (t).

Domestic induction furnace-finished long steel offers saw positive movement. Offers were hiked by up to INR 800/t w-o-w. The trade reference prices for HRCs and CRCs fluctuated in the range of INR 100-800/t across region.

Iron ore and pellets

• SteelMint’s bi-weekly domestic pellets (Fe 63%) index, PELLEX, remained stable at INR 10,000/tonne (t) DAP Raipur compared to the last assessment on 7 March, 2023. No deal was reported in this publishing window as market participants are yet to come back from the Holi festival holidays.
• NMDC conducted around 1.3 mnt of iron ore auction from Karnataka’s Donimalai and Kumaraswamy mines on 7 March, 2023. According to sources, 228,000 t of lumps (10-40mm, Fe61%) and 372,000 t of fines (Fe59%) were booked at INR 3,301/t and INR 2,872/t respectively from Donimalai. 310,000 t of lumps (10-40mm, Fe59.5-65.73%) and 388,000 t of fines (Fe58.22-64.74%) were sold at INR 2,892-3,752/t and INR 2,566-3,321/t respectively from Kumaraswamy. Prices exclude royalty, DMF, and NMET charges.
• Vedanta’s subsidiary, Electrosteel Steels Limited (ESL), conducted an auction on 9 March, 2023 for 60,000 t of iron ore lumps from its Nadidih BICO and Feegrade mines in Odisha’s Keonjhar district. According to sources, 50,000 t (10-40mm, Fe61%) was sold at INR 6,400-6,450/t and 10,000 t (5-18mm, Fe61%) was sold at INR 7,400/t. Prices are ex-mines and include royalty, DMF, and NMET charges.
• SteelMint’s India pellets (Fe 63%, 3% Al) export index FOB east coast was recorded at $118/t, down $5/t w-o-w amid low demand in China due to preference for low-grade iron ore. Increase in freight rates and some firm bids in the market limited export trades over the past week.

Coal

• Australian premium hard coking coal prices fell by $5/t w-o-w to $363/t FOB and $380/t CNF on 11 March, 2023 on an improved supply and lower demand. Portside prices of South African RB3 (4,800 NAR) thermal coal at Vizag Port have recorded at 10,300/t, majorly stable w-o-w.
• RB1 (6,000 NAR) grade prices were down by 7% w-o-w to $129.65/t FoB and RB3 prices recorded a drop to $93/t FOB, down by $11/t w-o-w.

Ferrous scrap

• The Indian ferrous scrap market remained silent over moderate enquiries due to the Holi festival. Steel producers were in a festive mood throughout the week. Offers remained range-bound and no major deals were heard this week. The imported scrap market remained slow as negotiations remained on hold for the bid-offer disparity.
• Mostly the western region of India remained inactive due to prior bookings of Pakistan-routed materials. These materials reached recently, creating scope for sufficient availability and fresh bookings might be heard at the end of March. The domestic ferrous scrap market, returning from Holi, mostly remained positive with minimal price revisions. Trade activities likely to resume in the near-term.
• SteelMint’s assessment for imported shredded scrap in containers stood at $480/t CFR, unchanged w-o-w.

Ferro alloys

• In SteelMint’s assessment on 10 March 2023, Indian silico manganese prices were unchanged w-o-w to INR 74,000/t ex-Durgapur, INR 74,000/t ex-Vizag, and INR 74,600/t ex-Raipur. Silico manganese prices remained stable because of a mixed market trend in domestic markets.
• As on 10 March 2023, Indian ferro manganese prices were almost stable w-o-w to INR 78,000/t ex-Durgapur and ex-Raipur at INR 78,300/t. Since demand for special steel remained muted, ferromanganese prices stayed the same.
• Indian ferro chrome prices fell due to weak demand. According to SteelMint’s assessment on 9 March, smelters were offering at around INR 118,800/t exw, dropped by INR 2,600/t w-o-w. Weak demand of domestic stainless steel prices also impacted ferro chrome prices.
• According to SteelMint’s assessment on 10 March, Bhutan’s ferro silicon smelters started offering at INR 120,000/t exw since early March and kept prices firm in this week as well to attract buying interest. Meanwhile, Guwahati producers also followed suit with offers of INR 120,000/t exw.

Semi-finished

• The semi-finished steel market has seen price volatility as demand has been moderate during these days, resulting in price fluctuations on floated offers through mid-sized mills.
• Domestic billets prices increased by INR 50-400/t in a weak trade, with the exception of the Hindupur market, where prices decreased by INR 100/t. Meanwhile, sponge iron offers fluctuated by INR 100-400/t.
• SAIL-Durgapur Steel Plant conducted an auction for 1,500 t of steel grade pig iron on 10 March, 2023, at which 900 t were booked at an average price of INR 41,250/t exw.
• Bhilai Steel Plant (BSP) conducted an auction for 10,000 t (60 kg, full length) of commercial rails on 4 March, 2023. Out of the total quantity, only 1,000 t was sold at INR 41,500/t ex-works, sources informed.
• RINL has floated an import tender for 50,000 tonnes (t) of billets. The last date and time for receipt of the tender is 13 March, 2023. Price bids are to be submitted electronically through Vizag Steel Plant’s SRM portal and the material is to be delivered by 31 March, 2023.
• SAIL-Rourkela Steel Plant held an auction for 4,000 t of steel grade pig iron on 6 March, 2023. The entire quantity was booked with an average price of INR 40,850/t exw. Vizag Steel has floated two ocean sale export tenders – one for 10,000 t of wire rod coils (5.5-16mm, SAE-1008/1010/1012/1012S/1018) and the other for 20,000 t of steel billets (90x90mm, C20MMn Gr. A). The due date for bid submission for both tenders is 14 March, 2023.

Finished long

• India’s induction furnace-route finished long steel market remained slow throughout the week owing to holi festivities across the regions. Despite limited purchase enquiries and minimal trading activity in the spot market, suppliers kept offer prices on the higher side owing to the unavailability of labour in the market this week.
• Buyers opted for a wait and watch mode to avoid purchasing at higher prices and in order to observe the market trend in the coming week since full-fledged working will resume again. Rebars steel prices increased by up to INR 800/t w-o-w across regions except in some markets where prices remained stable or declined by INR 600/t, as per SteelMint’ assessment.
• The trade reference price of Fe 500 grade rebars manufactured via the IF-route for 10-25 mm size was assessed at INR 50,500-50,900/t exw Raipur, INR 55,500-56,000/t exw Jalna.
• Trade reference prices of heavy structural steel for base size 150mm channel stands at INR 52,800-53,000/t exw Raipur. Trade reference prices in steel wire rods (5.5 mm, SWRY 14) in Raipur is at INR 50,700-51,000/t exw and INR 50,800-51,200/t exw Durgapur, prices are excluding GST at 18%.
• Trade level prices of rebars made through blast furnace (BF) route continued to show downtrend across key markets due to subdued domestic demand. Market activities in the distribution channel network remained muted this week amid Holi. SteelMint’s weekly price assessment for rebars (12-32 mm, BF-route, IS 1786, Fe500D) fell by INR 700/t w-o-w to INR 61,600/t, exy-Mumbai, excluding GST at 18%.

Finished flat

• Trade level prices of flat steel products remained range bound in key markets. Mills having increased list prices in the preceding week has supported trade market prices. However, lacklustre buying interest in the traders’ market and the Holi festive mood kept activities low this week, informed distributors.
• On the exports’ front, SteelMint’s India HRC (SAE1006) export index stood unchanged at $708/t FOB east coast for the fourth consecutive week. Major steel producers are to announce fresh quotes for April, 2023 shipments keeping overseas buyers on the sidelines, especially in Middle East markets. “European buyers have shown low buying interest over the past three weeks. However, Indian HRC prices to Europe are likely to increase in the upcoming deals amid an increase in latters’ domestic HRC prices,” hinted an EXIM trade source.