Daily Update: Indian Semis Offers Decline
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Spot steel trade activities remain lessened, resulting slight fall in prices in major Indian markets. As per assessment the prices through the mid sized mills fall in the range of INR 100-400/MT, day-on-day.
The Billet prices moved down by INR 100-400/MT and majorly in Western region-Gujarat by INR 400/MT (USD 6). Meanwhile, Sponge iron & Rebar prices declined by INR 100-200/MT on day trade activities in major markets.
Participants reported slight rise inventories of finished products, this may put pressure on Semis market in coming days.
SteelMint's latest price assessment for induction furnaces billet in Indian market stood at INR 30,900-34,200/MT (USD 439-486) ex-plant.
Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 18,700-19,600/MT (USD 266-278); prices are ex-plant & excluding GST.
Rupee & BSE Sensex
-- On 25th April 2019 (Thursday) INR to USD exchange rate stood at INR 70.3
-- ICEX (Indian Commodity Exchange Ltd) May'19 contract for STEELLONG today open at INR 33,720/MT & last traded (IST 18:50) at INR 33,540/MT.
-- BSE Sensex closed at 38,730(-323) on Thursday, as against last day (Wednesday) at 39,054(+489).
-- NSE Nifty50 index was closed today at 11,641(-84).
Trade Updates
-- Ferro Silicon prices in India are falling in line with low demand. Sellers are under persistent pressure to liquidate stocks. Prices hovering at INR 73,000-74,000/MT Ex-Guwahati.
-- India pellet export market remains quiet this week. Indian pellet makers were heard offering Fe 64/63% pellets with 3% Alumina at USD 119-120/MT CFR China but no deals were reported.
-- SteelMint has learned from the market sources that western India based steel mills have booked pellet from central India based pellet makers. As per the sources, they are moving pellet (Fe 63%) from plants via Dhamra port to Kandla. According to the sources landed cost will be around INR 8,000-8,100/MT.
-- India's Tata Steel concludes 15,000 MT imported scrap tender. According to sources, out of the total issued quantity through e-auction, 9,000 MT of HMS scrap was booked at around USD 330-335/MT, CFR Vizag and 6,000 MT of Shredded scrap at around USD 340-350/MT, CFR Vizag (India east coast).
-- Tata Metaliks Limited (TML) has declared its yearly results for FY19, in which the company's pig iron sales slightly fell by 2.5% Y-o-Y. However on Q-o-Q the same was surge 13% in Q4 FY19. The company's pig iron sales was about 283,454 MT in FY19 as against 290,902 MT during FY18; down by around 2.5% Y-o-Y.
-- BMM Ispat, a price trend setter in South India, Karnataka sponge market, has reduced prices by INR 200-300/MT and latest prices reported at INR 18,900-19,000/MT (ex-plant) for P-DRI.
-- Small lots of Billet & Wire rod sold for exports to Nepal by Durgapur, eastern India based mills. The deal prices reported at around USD 445/MT for Billet & close to USD 525/MT for Wire rod; ex-mill.
-- Odisha, Rourkela based plants are largely selling sponge C-DRI to North-east regions rather than in Central India. The deals have been reported at near to INR 18,700-18,900/MT (ex-plant) for 70:30 mix material.
-- Raipur based one of the major producer of Sponge iron is likely to resume sales in coming 1-2 days with an additional production capacity of 500 TPD. Meanwhile, due to present short supply, the remaining suppliers have raised offers to INR 18,700-18,800/MT, however no major deals heard at above to INR 18,600/MT (ex-plant) for P-DRI.
-- As per sources, gradual rise selling pressure with the major sponge producers in Durgapur due to weak demand and today offers reduced to around INR 18,200/MT for P-DRI & INR 19,500/MT for C-DRI, FoR.
-- Trade discounts in Raipur Wire rod remain unaltered and reported at INR 800-1,000/MT. Moreover basic prices being unchanged and stood at INR 37,900/MT ex-Raipur & INR 36,700-37,500/MT ex-Durgapur for 5.5mm & excluding GST.
-- Hyderabad (South India) based manufacturer Mahalakshmi Profiles Pvt. Ltd (MPL) has roll-over ERW Pipe prices and reported at INR 39,300/MT ex-plant. (basic & excluding GST).
Reference prices as on 25th April 2019
| Products | Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M |
| Scrap | Ex-Alang | HMS(80:20) | 27,200 | 27,100 | 27,300 | +200 | 26,100 | 25,800 |
| Ex-Mumbai | HMS(80:20) | 25,200 | 25,000 | 25,200 | +200 | 25,100 | 24,800 | |
| Ex-Chennai | HMS(80:20) | 24,400 | 24,200 | 24,500 | 0 | 24,500 | 24,500 | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 19,500 | 19,400 | 19,600 | -100 | 20,200 | 19,800 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 18,700 | 18,600 | 18,800 | 0 | 18,800 | 18,700 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 19,600 | 19,500 | 19,700 | 0 | 19,800 | 19,700 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 19,500 | 19,400 | 19,600 | 0 | 19,800 | 18,900 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 18,300 | 18,200 | 18,400 | -100 | 18,900 | 18,400 |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 18,600 | 18,500 | 18,700 | 0 | 18,600 | 18,400 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 19,000 | 18,900 | 19,100 | -200 | 19,300 | 18,400 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 19,600 | 19,500 | 19,700 | -100 | 19,900 | 19,000 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 33,800 | 33,700 | 33,900 | -100 | 34,500 | 33,800 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 31,200 | 31,100 | 31,300 | -100 | 31,500 | 31,000 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 30,600 | 30,500 | 30,700 | 0 | 30,800 | 30,200 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 30,850 | 30,800 | 30,900 | 0 | 30,800 | 30,600 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 33,000 | 32,900 | 33,100 | -200 | 32,700 | 32,600 | |
| Billet | Ex-Mandi Gobindgarh | 100x100 mm, IS 2831 | 34,200 | 34,100 | 34,300 | -100 | 34,800 | 34,200 |
| Ex-Durgapur | 100x100 mm, IS 2831 | 31,500 | 31,400 | 31,600 | -100 | 31,900 | 31,300 | |
| Ex-Rourkela | 100x100 mm, IS 2831 | 30,900 | 30,800 | 30,900 | 0 | 31,200 | 30,400 | |
| Ex-Raipur | 100x100 mm, IS 2831 | 31,500 | 31,400 | 31,600 | +50 | 31,500 | 31,100 | |
| Ex-Ahmedabad | 100x100 mm, IS 2831 | 33,600 | 33,500 | 33,600 | -400 | 33,400 | 33,300 | |
| Ex-Mumbai | 100x100 mm, IS 2831 | 33,300 | 33,200 | 33,400 | -100 | 32,900 | 32,800 | |
| Ex-Chennai | 100x100 mm, IS 2831 | 32,800 | 32,700 | 32,900 | -100 | 33,200 | 32,000 | |
| Ex-Hyderabad | 100x100 mm, IS 2831 | 32,300 | 32,300 | 32,500 | 0 | 32,500 | 32,500 | |
| TMT | Ex-Delhi/NCR | 12-25 MM, IS 1786- 500 Fe | 37,600 | 37,500 | 37,800 | 0 | 38,100 | 37,900 |
| Ex-Durgapur | 12-25 MM, IS 1786- 500 Fe | 36,800 | 36,600 | 37,000 | -200 | 37,400 | 36,300 | |
| Ex-Raipur | 12-25 MM, IS 1786- 500 Fe | 35,600 | 35,500 | 35,800 | -100 | 36,000 | 35,700 | |
| Ex-Mumbai | 12-25 MM, IS 1786- 500 Fe | 36,900 | 36,700 | 37,100 | 0 | 36,900 | 36,800 | |
| Ex-Chennai | 12-25 MM, IS 1786- 500 Fe | 37,700 | 37,500 | 37,900 | 0 | 37,800 | 37,400 | |
| Ex-Hyderabad | 12-25 MM, IS 1786- 500 Fe | 36,000 | 35,800 | 36,200 | -200 | 36,000 | 36,000 | |
| Wire Rod | Ex-Durgapur | Wire Rod(5.5 MM) | 37,000 | 36,700 | 37,500 | 0 | 37,400 | 36,500 |
| Ex-Raipur | Wire Rod(5.5 MM) | 37,900 | 37,000 | 37,900 | 0 | 38,400 | 38,000 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
