Weekly round-up: Indian long products volatile, flats prices drop

The semi-finished steel market saw some price fluctuations on the back of moderate demand during week 39 (20-25 Sept'21). Indian semi-finished prices (including that of sponge iron and billets) fluctuated in the range of INR 100-700/tonne (t), on a w-o-w basis.

The induction furnace (IF)-route finished long market witnessed limited trade across major supplying regions in India. In terms of prices, rebar remained volatile, fluctuating by INR 100-500/t in most locations although offers declined by up to INR 800/t in some markets.

Domestic finished flat steel prices remained under pressure due to low demand. Hot rolled coils (HRCs), cold rolled coils (CRCs) and HR-plates markets noticed a price correction of INR 200-800/t (exy-Mumbai), w-o-w.

Iron ore and pellets

• SAIL conducted an auction for 60,000 t of iron ore fines (Fe 62.5%-indicative) from its Bolani mines in Odisha. The due date for the submission of bids was 24 Sept'21. The base price for the material offered was INR 5,900/t FOR, inclusive of royalty, DMF, NMET and the additional amount mentioned in the MMDR Amendment Act. The tender failed to fetch any response due to bid-offer disparities.
  
  
• National Mineral Development Corporation (NMDC) had scheduled two iron ore auctions from its Chhattisgarh mines on 24 Sept'21. The auctions received subdued response, with the iron ore fines lot fetching no participation and the lumps and DR-CLO lots fetching a marginal premium of INR 100/t over the set base price.
  
  
• JSW Steel had scheduled an auction for 23,700 t of Fe58% iron ore fines on 24 Sept'21. It received bids for the entire material booked at INR 1,760/t (ex-mines, including royalty, DMF, and NMET).
  
  
• State-owned miner Odisha Mining Corporation (OMC) has scheduled iron ore lumps and fines e-auction on 1 Oct'21. About 781,000 t of iron ore lumps and 942,000 t fines have been put up for auction. The base price of the material is yet to be disclosed.
  Rungta Mines has placed the highest bid for the Jumka Pathiriposhi iron ore block in the ongoing mines auctions in Odisha at a premium of 110.15%.
  
  
• SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, fell marginally by INR 50/t to INR 11,050/t DAP Raipur on 24 Sept'21.
  
  
• SteelMint's India pellet export index (Fe 64%, 3% Al, FOB east coast) declined $16/t, w-o-w, to $100/t. These price levels were last witnessed towards end-Jul'20.
  
  
• SteelMint's weekly export index for low-grade Indian iron ore fines (Fe 57%) fell by $3/t to $35/t FOB east coast India.
  
  

Coal

• Australian premium low-volatile (PLV) hard coking coal (HCC) prices continued to surge this week, on the back of active trading in ex-China Asian markets amidst tight spot supply.
  
  
• The Chinese market continued witnessing shortages of both imported and domestic coking coal amid ongoing safety and environmental regulations and limited availability of non-Australian premium materials, while demand remained robust on healthy steel margins.
  
  
• Earlier this week, a trade deal was reported for 75,000 t of Australian premium mid-vol Moranbah North, with a mid-Nov'21 laycan - 30,000 t of the cargo concluded at $395/t FOB, while another 45,000 t was concluded on a floating price based on PLV HCC FOB Australia.
  
  
• Latest prices for the premium HCC grade are assessed at around $402/t FOB Australia, $586/t CNF China and $431.75/t CNF India.
  
  
• South African RB2 portside prices surged by INR 700/t on strong demand, averaging at INR 11,500/t ex-Gangavaram.
  
  
• South African RB1 prices rose sharply this week to $170/t on China's robust demand. Discounts for RB2 and RB3 were assessed at $22/t and $35/t respectively.
  
  

Ferous scrap

Imported scrap prices to India have seen a downward correction in recent deals concluded this week. Northern and western-India based mills booked some volumes of HMS of South Africa- and West Africa-origin. However, deals for shredded scrap continued to remain on the lower side.

Recent deals and offers

• 500 tonnes (t) of UAE-origin HMS 1&2 (80:20) have been booked at $455-458/t CFR Nhava Sheva. But, majority of the suppliers were resisting at $460/t CFR levels.
  
  
• 500 t of West African-origin HMS (80:20) was booked at $445/t CFR Nhava Sheva levels.
  
  
• 2,500 t of South African HMS1 has been booked at around $465/t CFR west coast of India.
  
  
• Indicative offers for imported shredded scrap were heard at $520-525/t. However, no firm offers are available, due to suppliers shifting to other markets.
  
  

Finished flats

The market for flat steel continues to relay sentiments similar to that of the previous week with low demand from downstream industries and end-users in the trade segment.

SteelMint's benchmark price assessment:

• HRC (2.5-8 mm IS 2062) prices stands at around INR 65,000-65,500/t (exy-Mumbai), down INR 200/t w-o-w.
  
  
• CRC (IS 513 Gr O, 0.9mm) is being traded at INR 72,000-73,000/t (exy-Mumbai), down INR 800/t on the week.
  
  
• HR-plates (IS 2062/E250, 5-10mm) stood at INR 65,000-65,500/t exy-Mumbai, moving down by INR 500/t w-o-w."The gap between procurement and trade reference prices is among the concerns bearing on the trade channel partners. Also, slow trade for an extended period has turned distribution channel participants weary of building up stocks," traders told SteelMint, when asked about the slow inventory movement in the trade segment.
  
  

Semi-finished

The semi-finished steel market witnessed volatility in prices as demand was moderate during the week which led to price fluctuations in offers from mid-sized mills.

Domestic billet prices fluctuated by INR 100-500/t following sponge iron offers, which were also volatile by INR 100-700/t this week.

• At SAIL's auction for 8,000 t of basic grade pig iron on 22 Sept'21 from Bhilai Steel Plant (BSP), the entire quantity was booked at a weighted average price of INR 40,150/t exw.
  
  
• Vizag Steel floated two ocean sale export tenders for 20,000 t of billets (90x90mm, C20MMn Gr. A) and 15,000 t of wire rod coils (5.5-12 mm, grades SAE - 1008/ 1010 / 1012/ 1012S / 1018). Both tenders are due on 4 Oct'21.
  
  
• SAIL has scheduled an auction for 4,000 t (two rakes) of basic grade pig iron on 29 Sept'21 from Bokaro Steel Plant.
  
  
• Tata Metaliks Ltd (TML) raised foundry grade pig iron prices by INR 900/t to INR 44,500/t exw-Kharagpur. Prices are applicable for the Kolkata and Howrah markets in West Bengal.
  
  
• Vizag Steel conducted an auction for 1,500 t of basic grade pig iron on 24 Sept'21 at INR 41,000/t. As per sources, the tender received no bids.
  
  
• This week, demand remained dry from the Nepal mills for Indian IF-route billets. SteelMint's assessment has been dropped to $565-570/t exw-Durgapur, equivalent to $595/t CPT Nepal, via road delivery.
  
  
• Pig iron prices further rose in the domestic market due to a slight supply shortage along with the rally in coke prices. Prices this week rose by INR 1,000-2,000/t and the major hike was recorded in the central region by INR 1,500-2,000/t.
  
  
• SteelMint's benchmark Indian sponge C-DRI (FeM 80%, lumps 100%) export price assessment rose this week by $5-10/t, with around 15,000 t of fresh deals reported at an average price of $460/t CPT Benapole, equivalent to $490/t CFR Chittagong.
  
  

Finished longs

This week, finished long steel manufactured via the IF route observed limited transactions across the major supplying regions in India. Owing to limited demand in the spot market and high volatility in semi-finished steel prices, traders are cautious of procuring in bulk volumes.

Despite curtailed production, more than average inventories are pressuring the mills to adjust rebar prices as per requirement and movement of raw material prices.

In terms of prices, on a weekly basis, rebar prices were volatile by INR 100-500/t in most markets while in a few markets these decreased by up to INR 800/t as well, SteelMint's assessment shows.

• The trade reference IF-route rebar prices of 10-25 mm, Fe 500 grade, is assessed at INR 44,500-44,800/t exw-Raipur, and INR 45,800-46,200/t exw-Jalna.
  
  
• Trade discount given by Raipur-based heavy structural steel manufacturers is at INR 900-1,200/t and the trade reference price of 200 mm angles stood at INR 49,700-50,100/t exw-Raipur.
  
  
• Trade discounts given by Raipur-based wire rod suppliers are at INR 1,000-1,200/t and trade reference prices stood at INR 45,200-45,400/t exw-Raipur, INR 44,800-45,000/t exw-Durgapur, for the 5.5 mm category.
  
  

Ferro alloys

Silico manganese prices increased w-o-w owing to improved demand and positive sentiments in the Chinese market.

• The current price of silico manganese is at INR 92,000/t exw-Raipur while for Durgapur, prices are at INR 91,900/t exw.
  
  
• According to SteelMint, ferro manganese prices remained stable from Raipur at INR 100,000/t exw with moderate bookings noted. Ferro manganese prices in Durgapur increased marginally to INR 99,500/exw on a weekly basis.
  
  
• Ferro chrome prices bounced back owing to increased inquiries from the domestic and Chinese markets. The current price has increased by INR 4,600/t w-o-w to INR 111,600/t exw-Jajpur, according to SteelMint's assessment.
  
  
• Ferro silicon prices registered an all-time high this week. Due to robust inquiries, buyers were increasing prices on a daily basis. SteelMint assessed the current market price of ferro silicon at a historical high of INR 157,700/t exw-Guwahati.