As per SteelMint`s assessment, in these days prices of Semis products (Billet & Sponge iron) have increased by INR 200-1,200/MT (USD 3-17). However, the Finished Long steel prices declined in the same proportion due to logistic issue amid seasonal slow down. In context to Flat steel, the suppliers have maintained offers with limited trade activities.
As per Finished steel producers, during the week supply for the Inter & intra state both was negatively affected due to transporters strike which begin from 20th July and end on 27th July (yesterday). Although, post the called off strike, supply movement have improved, which led to price rise.
Iron Ore: India`s largest iron ore miner - National Mineral Development Corporation (NMDC) has announced price revision on 26th July’18. Iron ore base prices at NMDC Donimalai has been decreased by INR 300/MT in fines and INR 100/MT in lumps with effect from (i.e. 26 July’18).
-- KJS Ahluwalia, Kaypee Enterprises, RP Sao Rungta Mines and Serajuddin Mines have increased Fe 63% iron ore fines prices by INR 150/MT. Currently Iron ore fines (Fe 63%) prices are assessed around INR 2,400-2,450/MT (ex-mines, including Royalty, DMF & NMET). Increased in pellets export realization and seasonal monsoon affect led the miners increased iron ore prices.
-- Jindal SAW (Rajasthan) increased pellet offers by INR 150/MT(USD 2). Offers for Fe 63% grade pellets are assessed around INR 7,500/MT (delivered Kandla) against last weeks’s assessment of INR 7,350/MT.
-- Central India Pellet price assessment for this week is at INR 6,400-6,500/MT (ex-Raipur) in line with the last week’s assessment. However, buying interest is heard INR 100-150/MT lower than present offers.
-- Indian pellet export prices of regular grade Fe 64% containing alumina about 3% has increased further by USD 2-3/MT W-o-W to USD 122-123/MT, CFR China.
Scrap: Very limited trades observed in imported scrap market this week amid competitive price of domestic scrap and depreciated currency. However, few steelmakers have started enquiries anticipating that prices might have bottomed out and may observe upward corrections in upcoming days.
Offers fell marginally for Shredded and remained almost stable for HMS on W-o-W. Price assessment of Shredded from UK and USA stands at around USD 360-365/MT, CFR Nhava Sheva. UAE origin HMS 1&2 (80:20) offers assessed at USD 330-335/MT,CFR while HMS 1 assessed at around USD 340-345/MT, CFR. West African HMS is being offered at USD 315-325/MT and UK HMS 1&2 at USD 335-340/MT, CFR Nhava Sheva depending on quality.
Coal: Seaborne coking coal prices continued their downward movement over the past week amid weak demand in Asian countries, especially in China and India; but the prices fell at a slower pace than the stupendous fall in the second-to-last week. Ongoing uncertainties over the US-China trade war and strict import restrictions at various ports have hindered buying interest in China. Moreover, China’s depreciating Yuan, declining coke prices, environmental restrictions on coal consumption and prospective production curbs on steel and coke capacity have aggravated the bearish situation further. Also the Indian market has quietened due to the onset of monsoon season. Import offers for the premium HCC grade have plummeted to as low as USD 173/MT FOB Australia.
Semi Finished: Indian Semi finished prices increase further over disruption of supply-demand during the days. As per SteelMint assessment, the domestic Billet prices have increased by INR 400-1,200/MT (USD 8-27) & Sponge iron by INR 200-1,000/MT (USD 7-23).
Indian Induction grade Billet export offers to Nepal by Durgapur based mills have increased with surge in domestic prices. The latest price assessment stood at USD 465-470/MT against last week at USD 460-465/MT ex-mill. Similarly offers through Odisha, Rourkela based manufacturers increased at USD 450-455/MT ex-mill.
-- Indian sponge iron export offers fall by USD 5/MT W-o-W, price assessment for 78-80 FeM sponge lumps are at USD 325/MT CPT Benapole (dry port of Bangladesh & India) and USD 345-350/MT, CFR Chittagong, Bangladesh.
-- Indian mills turned active in exports after currency depreciation and decline in domestic prices. INR depreciated to all time low of 69.05 against USD in the last week.
-- SAIL- a government of India company has floated export tenders for 16,200 MT billet, whose due date for bid submission was 27 Jul’18. Sources reported the highest bid fetched was heard at around USD 505-508/MT, FoB India.
-- Neelachal Ispat Nigam Ltd (NINL) - India’s largest pig iron manufacturer & exporter has rolled over pig iron prices in line with healthy bookings for domestic & exports. The latest offers for Steel (N1) grade material are assessed at INR 27,900/MT (USD 405) & for Foundry (N2) grade at INR 28,500/MT (USD 414), ex-Cuttack, Odisha.
-- SAIL`s auction held on 23-Jul`18 to sale about 9,000 MT Pig iron from its Rourkela Steel Plant (RSP), has received good response as total allotted quantity have been sold out with increase bid prices. The company has quoted base prices at INR 27,720/MT, however the auction get conclude at around INR 27,800-27,900/MT ex-plant, as per participants.
-- Jindal Steel (JSPL) has kept offers for Panther shots (Granulated pig iron) unaltered and current trades at INR 27,500-28,000/MT ex-plant, Angul, Odisha.
-- SteelMint`s pig iron export price assessment is at around USD 380-385/MT FoB India, USD 380-385/MT FoB Brazil & USD 385-390/MT FoB Black Sea.
Finish Long Steel went down up to INR 1,200/MT (W-o-W) commodity wise (Rebar, Structure, Wire Rod & ERW Pipe) amid quiet response from traders end along with limited supply movement due to transportation strike.
Market participants share that slow demand in rebars and minor volume has been concluded in overall regions with limited accessibilities and price range might get supportive for near term as strike called off.
-- Whereas West region - Gujarat market have seen slight developed over noticeable movement & reported INR 400-600/MT rise in rebars prices since the transport strike as few transporters charged high premium with their regular freights.
-- In the mid week, North region (UP) based mills have changed the gauge parity in rebars i:e; 8mm – INR 2,300/MT, 10 mm – INR 1,500/MT, 16/20/25 mm – INR 500/MT and 28/32 mm – INR 2,300/MT.
-- Central region – Raipur based Re-sellers have decreased Wire Rod (5.5 mm) discount range to INR 600-800/MT whereas earlier it was hovering by around INR 1,200-1,400/MT and current trade reference price range reported at INR 36,300/MT, Ex-Raipur.
Currently rebar prices assessed at INR 35,900-36,300/MT Ex- Jalna, INR 34,500-34,900/MT Ex- Raipur, INR 38,700-39,100/MT Ex-Chennai. All prices are basic & excluding GST.
-- As per reports, about 4 medium scale mills in Chennai, South India who produces Billet, Rebar & Structure, closed in recent due to pollution issues. Hence, market expects local steel prices to get support in the region.
-- In last one week, A large mill based in South India has reduced rebar prices by INR 500/MT. Currently the prices heard at around INR 42,000/MT, size 10-25mm, ex-Chennai & excluding 18% GST.
-- A state owned Steel unit currently offers Wire rod is around INR 42,000/MT (ex-plant) in Central India, size 5.5-6mm, GST extra.
Finish Flat Steel: This week domestic flat steel prices continued to remain steady over dull trades and dwindling demand in domestic market. Traders continue to remain under pressure to sell the material and thus lowering the prices in domestic market. Inline prices decline by INR 500-700/MT in few regions like Ludhiana and Delhi.
As per SteelMint price assessment,currently trade reference prices for HRC (IS2062)2.5mm-8mm is around INR 45,000/MT (ex-Mumbai), INR 44,800-45,000/MT(ex-Delhi) and INR 45,000/MT (ex-Chennai).The prices mentioned above are basic on cash payment excluding GST @ 18%.
Currently trade reference prices for CRC (IS513) 0.9mm is hovering in the range of INR 49,500- 50,000/MT (ex-Mumbai),INR 49,500/MT (ex-Delhi) and INR 51,000/MT (ex-Chennai).The prices mentioned above are basic on cash payment excluding GST@18%.
However traders and end users are expecting correction in domestic flat steel prices in coming month.
Indian Raw material and Finished Steel reference Prices as on 28 July 2018 (Week 30)
| Products | Regions | Taxes | Pricesin INR/MT | W-o-W |
| PelletFe63%,6-20mm | Ex-Barbil,Loadedtowagon | GST at 5% Extra | 6,500 | 0 |
| IronoreFe62%,10-30mm | Jodaloadedtowagon | Incld Royalty, DMF & NMET, GST at 5%Extra | 5,750 | 0 |
| Coking Coal, Premium HCC | CNFIndia | Prices in USD | 188 | -7 |
| ScrapHMS(80:20) | Ex-Mumbai | GST at 18% Extra | 24,800 | +300 |
| C-DRI80FeM | Ex-Raipur | GST at 18% Extra | 22,000 | +300 |
| P-DRI80FeM | Ex-Raipur | GST at 18% Extra | 20,500 | +800 |
| PigironSteelgrade | Ex-Raipur | GST at 18% Extra | 29,100 | +100 |
| Billet125*125MM | Ex-Raipur | GST at 18% Extra | 31,800 | +600 |
| Rebar (12-25mm) | Ex-Raipur (Medium Scale) | GST at 18% Extra | 34,700 | -400 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 36,900 | -100 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 37,000 | -200 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 45,000 | 0 |
| CRC (0.90mm) | Ex-Mumbai | GST at 18% Extra | 50,000 | 0 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 44,500 | 0 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices as on 28th July`18
| Commodity | Size and Grade | Prices | 1W | 1M |
| Pellet | Fe 64% | 112 | 110 | 108 |
| Billet | 150*150 mm | 500 | 510 | 517 |
| Pig Iron | Steel Grade | 383 | 383 | 388 |
| HRC | 2.5-8mm, IS 2062 | 615 | 615 | 622 |