Indian Steel Market Weekly Snapshot

According to Mining News Pro - As per industry participants, sponge iron supply has improved in merchant market, while limited demand in finished steel products leads to price fall in across major Indian markets.

In these days the prices of Semis & Finished long steel products fall approximately by INR 500-1,500/MT (USD 7-21). However the Flat steel prices have remained firm on average demand amid anticipations of further hike in prices by large mills.

Iron Ore: Odisha iron ore merchant miners have kept prices unchanged for this week. According to market sources reported to SteelMint, demand for Australian origin imported lumps in India has witnessed an increase amidst limited supplies from South Africa. Weather constraints, port congestion along with the railway maintenance shut down have reduced the South African lump availability.

Central India (Raipur) pellet price assessment has decreased significantly by INR 700-800/MT to INR 9,000-9,200/MT this week against the last assessment which was INR 9,700-9,800/MT (basic, GST extra). Durgapur (Eastern India) reference pellet price assessment stands at INR 8,500/MT (delivered) this week against last week INR 8,700-8,800/MT.

Earlier at the beginning of the week, Central India steel mills had booked pellets from Jamshedpur as offers were competitive and coming around INR 9,100-9,300/MT (landed to Raipur).

Southern India based pellet maker - KIOCL had concluded another pellet export tender for around 50,000 MT of Fe 64% grade (less than 2% alumina) at around USD 149-150/MT, FoB India- Sources.

Indian imported scrap market witnessed more number of trades as compared with Pakistan and Bangladesh amid Muharram holidays this week. However, depreciated currency kept trade volumes limited at inched up prices in containers and no bulk inquiry heard.

Offers for UK origin Shredded scrap in containers heard at around USD 365/MT, CFR Nhava Sheva. Offers from Dubai based suppliers remain at USD 355/MT for HMS 1 and for South Africa HMS 1&2 at around USD 350/MT, CFR. Offers for HMS 1&2 (80:20) heard at USD 345-350/MT from UAE, UK and other origins while few deals for West African HMS 1&2 in containers is learned mostly at around USD 340/MT, CFR Nhava Sheva.

Australian coking coal export prices declined gradually from last week’s price level as most buyers held back amid uncertainty about near term prices.

-- But, notably, the premium metallurgical coal segment is comparatively steadier at the moment, on the back of strong demand for premium hard low-volatile cargoes.

-- In China, steelmakers were heard contemplating on current prices, believing that prices may see some downward pressure in coming weeks.

-- Meanwhile, India’s rupee depreciation in the past month against the US dollar has substantially increased end-users’ cost, thereby making imported met coal unviable at present.

-- Latest spot prices for the Premium HCC grade are assessed at around USD 205.50/MT FOB Australia and USD 221.75/MT CNF India; while current offers for the 64 Mid Vol grade are assessed at around USD 179.60/MT FOB Australia and USD 195.85/MT CNF India.

Semi finished steel: In a week duration, domestic Sponge iron offers slashed by INR 500-1,300/MT & Billet prices fall in the range of INR 800-1500/MT (USD 11-21). In this period major fall in Billet seen in Ahmedabad, Western India owing to limited inquiries & following price corrections in local ship breaking scrap.

-- Indian sponge iron export offers to Bangladesh for lumps grade(FeM 78-80) stood at USD 370-375/MT CPT Benapole (dry land port of Bangladesh & India) and USD 390-395/MT CFR Chittagong, Bangladesh.

-- Indian induction grade Billet export offers to Nepal slump on declined domestic prices. Latest offers hovering at USD 495-498/MT Ex-Mill, Durgapur & loaded to rake, Odisha.

-- RINL has invited a tender for export of 10,000 MT Billets, 25,000 MT Blooms and 5,000 MT Wire Rod. Interested bidders can submit their bids till 25 Sep’18 at 11:00 hrs.

-- Neelachal Ispat Nigam Ltd (NINL), India’s largest and state owned steel grade pig iron manufacturer & exporter has increased pig iron prices by INR 300/MT (USD 4). The latest offers for Steel (N1) grade material are assessed at INR 30,200/MT (USD 420), ex-Cuttack, Odisha.

-- RSP (Rourkela Steel Plant) tender held on 18th Sep`18 to sell about 9,100 MT steel grade pig iron & had received mix response. The base price for the tender was quoted by RSP at INR 30,660/MT, As per participants around 1,200 MT pig iron was sold at the base price of INR 30,660/MT, while near about 3,600 MT fetched bid around INR 31,000/MT, ex-plant Rourkela, Odisha.

-- SteelMint`s Pig iron export price assessment stood at USD 365-370/MT FOB Brazil, USD 370-375/MT FOB Black Sea & USD 380-390/MT FOB India.

Indian Finish Long steel market remained depressed over poor off take in overall regions amid weaken raw material (Billet) offers and disturbed supply chain in particular regions.

As per market participants, trade volumes was thin amid volatile sentiments and price range slashed by INR 1,000-1,500/MT commodity wise except Chennai where price range slight positive on weekly basis due to strengthening raw material (Billet & Melting Scrap) prices.

The trade reference rebar (12-25 mm) offers of medium scale produces are assessed at INR 39,500-39,700/MT ex- Jalna, INR 38,800-39,000/MT ex- Raipur, INR 42,800-43,000/MT ex-Chennai. All prices are basic & excluding GST.

-- Central India based heavy structure manufacturers have slightly reduce discount range to INR 600-700/MT as per quantity and current trade reference price hovering in the range of INR 40,200-40,400/MT (40 Angle) and INR 41,100-41,300/MT (200 Beam).

-- Wire rod trade discount offered by manufacturers/suppliers in Raipur has slightly increased compared to last week which is now in the range of INR 800-1,300/MT.

Indian large steel producers has not made any announcement for the rise in long steel prices. But industry leaders strongly believes that large steel companies are going to increase prices next week due to rising input cost. Also rupee depreciation against dollars has further increased the cost of importing coal. As per sources, long steel prices are likely to increase prices in the range of INR 500-1,500/MT in the upcoming week.

Currently, rebar prices will be offered by the large scale producers close to INR 43,100-43,500/MT ex-Chennai, INR 44,000-44,500/MT in Delhi/NCR for the retail segment, Size - 12 mm & excluding GST at 18%.

Finish Flat Steel: Indian steel manufacturers are planning to hike domestic flat steel prices by around INR 1,000/MT (USD 14) in October amid higher raw material cost and costlier imports. Inline trade participants reported the announcement is likely to be made in next week.

However on other hand flat steel prices witness marginal uptrend in northern regions like Faridabad and Ahmedabad markets by INR 500/MT. And CRC prices increased by INR 500-1,000/MT in Ludhiana and Faridabad market amid short supply. In other regions, demand was reported to be slower than in previous week.

The current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 46,500/MT (ex-Mumbai) & INR 46,500-46,800/MT (ex-Delhi).The prices for CRC (IS513) 0.9mm is hovering in the range of INR 51,500/MT (ex-Mumbai) & INR 52,000-53,500/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

Indian steel mills actively booking HRC for exports to Vietnam- Indian HRC export offers for Vietnam is learned around USD 575-580/CFR basis for Oct shipments against previous deal price of USD 580-585/MT, CFR. However no major deal at corrected price was reported.

Indian Raw material and Finished Steel reference Prices as on 22 September 2018 (Week 38)

Prices are Ex-works, Exclusive of GST at 18%

Indian Export Reference Prices as on 22nd September`18