Indian Steel Market Weekly Snapshot
Mining News Pro - Indian steel prices moved up during the Week 31 (30 Jun- 4 Aug) on improved domestic & export inquiries.
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Indian steel prices moved up during the Week 31 (30 Jun- 4 Aug) on improved domestic & export inquiries.

The Induction grade billet producers have actively participated for overseas as couple of export deals reported from South India to South East Asia. Similarly, the mills in East India fetched good bookings from Nepal re-rollers which dispatches are in pipe line. Indian Sponge iron export deals being observed during the mid of week for near about 4,000 MT.

As per SteelMint assessment, during the week prices of Semis & Finished long steel products have inclined by INR 200-1,600/MT (USD 3-24). However, the Flat steel prices were unaltered in the major market.

Iron Ore: Orissa Mining Corporation Iron ore lump auction fetches bids higher by INR 200/MT in the recently concluded iron ore auction on 03rd August 2018.

Domestic pellet prices in India have remained mostly stable this week with the marginal increase in eastern India by around INR 100/MT W-o-W. The reference pellet price assessment stands at INR 6,600-6,700/MT in Durgapur (delivered) & INR 6,500/MT ex-Raipur. Southern India (Bellary) based pellet makers have kept prices unchanged to INR 6,250-6,350/MT.

As per the sources, rake availability in the eastern part of India is extremely critical, which has hampered the material movement in the domestic market.

KIOCL (Kudremukh Iron Ore Company Limited) has recently concluded another deal of 50,000 MT pellets of Fe 64% grade (less than 2% alumina) at around USD 116-118/MT, FoB India for August shipment- Sources. And its a 3rd export deal concluded by pellet maker in the last 15-20 days.

Scrap: Indian imported scrap prices remain almost stabilised during this week. Although buying inquiries made at slightly lower levels by USD 5-10/MT, sellers were not much interested to offer below their expectations. Sentiments are likely to turn positive in upcoming 10 days with improving demand. However, domestic scrap despite slight moving up of prices, remains cheaper over imported.

Price assessment of UK and USA origin containerized Shredded scrap stands at around USD 360-365/MT, CFR Nhava Sheva. On W-o-W basis, HMS 1&2 offers have inch down following global trend. Offers from UAE for HMS 1&2 (80:20) heard at USD 330-335/MT and for HMS 1 at around USD 335-340/MT, CFR. UK origin HMS 1&2 (80:20) is being offered at USD 335-340/MT, West African scrap sold in limited quantity in the range of USD 315-320/MT, CFR.

Coal: Australian premium low-vol hard coking coal prices witnessed a slight uptick after trades were concluded at higher levels in the first half of this week, but prices for the mid-vol grade plunged deeper. Ongoing port congestion`s continue to hinder buying activities in China, though the current level of imported metallurgical coal prices sold into China is quite reasonable for most end-users. CFR China met coal prices may soften further as the Chinese government’s tightening clampdown on steel and coke output capacities as well as stringent port restrictions are likely to intensify going forward. Spot prices of the Premium HCC are currently assessed at around USD 175.50/MT FOB Australia.

Semi Finished: In a week duration, domestic billet prices increase by INR 200-1,600/MT (USD 3-24) and the hike of INR 1,200-1,600/MT (USD 17-24) observed in Jalna & Mumbai, Western India. As per billet producers in West India they have good bookings in hand, hence are not looking for price corrections.

Domestic Sponge offer increased by INR 300-700/MT W-o-W. The market participants mentioned that prices may support & stay strong due to seasonal low productions .

-- Indian Sponge iron export deals concluded at around USD 325/MT CPT Benapole (dry port of India & Bangladesh), equivalent to USD 345-350/MT CFR Chittagong, Bangladesh. According to manufacturers based in east & southern India, about 4,000 MT of Sponge iron export deal to Bangladesh during the mid days of week.

-- The current export offers of Billet produced through EA or induction furnaces are evaluated at USD 465-468/MT ex-Durgapur, East India, equivalent to USD 495/MT CFR Raxaul border, Nepal.

-- SAIL’s oldest Blast Furnace-1 in BSP (Bhilai Steel Plant) which was on shut down since start of Feb’18 owing to repairs and maintenance, has resumed production on 01 Aug`18, as reported by company.

-- In recent, SAIL has re-issued export tenders for Prime Mild Steel Non-Alloy Concast billets of 8,100 MT (125*125mm) from Durgapur Steel plant and 10,800 MT (150*150mm) from IISCO Steel plant. The due date for submission of bids is is 17:00 hrs as per IST on 07 Aug’18.

-- Jindal Steel is offering Pig iron at INR 29,000/MT Ex-plant, Raigarh & Panther shots (granulated pig iron) at INR 27,500/MT Ex-plant, Odisha.

-- Neelachal Ispat has received good response in pig iron offers and more than 30,000 MT has been booked by Central & North India based stockiest. The Company`s domestic Pig iron offers were at INR 27,500-27,900/MT for steel grade & INR 28,500/MT for Foundry grade, Ex-plant, Odisha.

-- As per reports, NINL has achieved its best ever saleable pig iron dispatch, about 4,190 MT on 24th Jul`18 from its Kalinganagar, Odisha plant. Prior to this, healthy volume of dispatch was recorded at 3,718 MT on 26th Nov`15.

-- SteelMint`s Pig iron export price assessment stood at USD 375-385/MT FOB Brazil, USD 380-390/MT FOB Black Sea & USD 375-385/MT FOB India.

Finish Long Steel remain on positive mode from mid week and the price increase up to INR 1,100/MT on better demand and enhanced supply movement in over all regions dragged by strengthening semi finish prices. As per participants, upward movement might get supported for near term as healthy bookings were registered in last couple of days.

-- Central region – Raipur based Re-sellers decreased Wire Rod (5.5 mm) discount to INR 800-1,000/MT whereas earlier it was at around INR 1,400/MT and current trade reference price range reported at INR 37,200/MT, Ex-Raipur.

-- Major re-rollers hub in western region (Jalna) & central region (Raipur) reported to be have less inventory levels in comparison to past week and selling pressure doesn’t exist as per current situation.

-- Current rebar price assessed at INR 36,700-37,000/MT Ex- Jalna, INR 34,900-35,200/MT Ex- Raipur, INR 38,800-39,200/MT Ex-Chennai. All prices are basic & excluding GST.

-- Government owned - Vizag steel has reduced rebar prices by INR 750-1,000/MT and wire rod by INR 500/MT for Aug’18, as per company`s price circular.

-- Presently, large steel producers are offering 12mm rebar in the range of INR 41,500-42,000/MT ex-Chennai & excluding GST.

-- JSW Steel exported around 61,000 MT of rebar in Jul`18 from Krishnapatnam port as per custom data maintained with SteelMint.

Finish Flat Steel: Major Indian steel manufacturers may roll over flat steel prices for the month of August. However confirmation from company officials is still awaited. Amid sluggish demand and slow movement of material in domestic market along with limited export bookings, companies may offer some rebates to attract buyers.

Last month also Indian steel mills had kept domestic prices unchanged over weak purchases.

Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 44,500-45,000/MT (ex-Mumbai), INR 44,500/MT(ex-Delhi) and INR 45,000/MT(ex-Chennai). And 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 prices excluding GST@18%.

Indian HRC export offers decline - Owing to cheaper HRC offers from Chinese mills and competitive domestic HRC prices in Vietnam results to decline in Indian HRC export offers by USD 5-8/MT W-o-W to USD 593-605/MT CFR Vietnam.

Indian Raw material and Finished Steel reference Prices as on 4 August 2018 (Week 31)

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

186

-3

ScrapHMS(80:20)

Ex-Mumbai

GST at 18% Extra

25,400

+600

C-DRI80FeM

Ex-Raipur

GST at 18% Extra

22,350

+350

P-DRI80FeM

Ex-Raipur

GST at 18% Extra

20,700

+300

PigironSteelgrade

Ex-Raipur

GST at 18% Extra

29,100

+100

Billet125*125MM

Ex-Raipur

GST at 18% Extra

32,000

+400

Rebar (12-25mm)

Ex-Raipur (Medium Scale)

GST at 18% Extra

35,100

+400

Wire Rod (5.5 mm)

Ex-Raipur

GST at 18% Extra

37,400

+500

Structure ( 40 Angle)

Ex-Mumbai

GST at 18% Extra

38,200

+1,100

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 4th August`18

Commodity

Size and Grade

Prices

1W

1M

Pellet

Fe 64%

113

112

110

Billet

150*150 mm

500

503

515

Pig Iron

Steel Grade

380

383

385

HRC

2.5-8mm, IS 2062

611

615

622


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