Daily Update: Indian Semis Offers Decline Further
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Indian Steel prices continued down owing to limited inquiries and rising supply. On day trade activities prices drop by INR 100-600/MT (USD 9) through the mid sized mills.
The major fall in Billet prices seen in Western India (Gujarat & Maharashtra) by INR 400-600/MT, while in remaining markets it correct close to INR 200-300/MT. Sponge iron prices down by INR 200-300/MT, meanwhile Rebar slump in the range of INR 100-400/MT in major markets.
Following constant fall in prices, conversion spread (margins) of standalone Sponge iron, Billet & Rebar makers are learned to be bottomed out. Hence the mills are trying to hold offers, meanwhile price competitiveness isn't supporting the same.
SteelMint's latest price assessment for induction furnaces billet in Indian market stood at INR 31,000-34,400/MT (USD 445-494) ex-plant.
Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 19,000-20,000/MT (USD 272-287); prices are ex-plant & excluding GST.
Rupee & BSE Sensex
-- On 12th March 2019 (Tuesday) INR to USD exchange rate stood at INR 69.67.
-- ICEX (Indian Commodity Exchange Ltd) Apr'19 contract for STEELLONG today open at INR 34,180/MT & last traded (IST 18:12) at INR 34,160/MT.
-- BSE Sensex closed at 37,535(+481) on Tuesday, as against last day (Monday) at 37054(+382).
-- NSE Nifty50 index was closed today at 11,301(+133).
Raw Materials
-- Southern India based pellet maker - KOICL Ltd plans to ramp up pellet production to 2.6 MnT in next year.
-- SteelMint's current pellet assessment for Durgapur is around INR 6,000-6,200/MT this week down by INR 200-300/MT against last week's assessment
-- According to market sources report to SteelMint, pellet offers from Raigarh based pellet makers is around INR 6,100-6,300/MT (Ex-Raigarh).
-- JSW Steel's crude steel production plunged by 13% M-o-M in Feb'19- & stood at 1.257 MnT as compared to 1.45 MnT in Jan'19.
-- Local manufacturers in Central India offered 60-14 Silico Manganese at around INR 67,000-67,500/MT ex-plant.
Semi Finished
-- MMTC- India's largest and state-owned trading house, has floated export tender of 30,000 MT non-alloy Pig Iron on behalf of NINL. The due date for submission of bids is 14:30 hrs on 26 Mar'19 and bid validity is till 2nd Apr'19.
-- Indian sponge iron export offers reduced by USD 5-10/MT W-o-W, price assessment for 80 FeM sponge lumps are at USD 300-305/MT CPT Benapole (dry land port of Bangladesh & India) and USD 320-325/MT CNF Chittagong, Bangladesh.
-- Raipur, Central India based Integrated plants offers decreased by INR 200/MT, offering Sponge P-DRI at INR 18,600-18,800/MT & Sponge DR CLO grade at INR 20,900-21,100/MT ex-plant.
-- Raigarh based Singhal Steel offered P-DRI at INR 18,200/MT ex-Raigarh & Billet at INR 31,600/MT FoR Raipur, officials reported.
-- Aloke Steel Industries (Jharkhand) offered Fem 78-80 C-DRI lumps at INR 19,800/MT & Sponge mix material (60:40) at INR 19,500/MT ex-plant.
-- Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 19,100/MT & Billet at INR 31,000/MT ex-plant.
-- BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 18,600/MT ex-Bellary, offers decline by INR 400-500/MT from the last trade; an official reported.
-- BIOP Steels in South India has kept offers unaltered; offering FeM 80 & 82 C-DRI lumps at INR 19,800/MT & 20,100/MT ex-plant, Karnataka; an official reported.
-- Hare Krishna, a 300 TPD sponge manufacturer in Bellary, Karnataka has offered FeM 82 P-DRI at INR 20,000/MT ex-plant, an official reported.
Wire Rod & Pipe
-- Raipur based wire rod manufacturers reduced offers by INR 400/MT and trade discount through the manufacturers/suppliers is around INR 1,000-1,200/MT. The offers for 5.5 mm wire rod is hovering at around INR 38,000/MT ex-Raipur & INR 36,400-36,600/MT ex-Durgapur.
-- Raipur, Central India based ERW pipe manufacturers decreased prices by INR 200/MT & offers reported at around INR 37,300/MT ex-plant & excluding GST.
-- Hyderabad (South India) based manufacturer Mahalakshmi Profiles Pvt. Ltd (MPL) has offered ERW Pipe at INR 39,800/MT ex-plant. (basic & excluding GST).
Rebar (12 mm)
-- Rathi Steels based in North region is offering at INR 38,800/MT (Ex-Delhi).
-- Raipur based - SPEED TMT is offering at INR 36,100/MT (down by INR 200/MT).
-- Gujarat based Shreeyam Power & Steel Industries Ltd. (National TMT) is offering at INR 39,400/MT FoR (down by INR 200/MT).
-- Jalna based Rajuri Steel Pvt. Ltd. (Rajuri TMT) offers are at INR 38,300/MT.
-- Chennai based ARS Steel (ARS 500 D) offers are at INR 40,800/MT.
Note - Prices mentioned above are ex-work, excluding GST & changes are placed on day basis.
Reference prices as on 12th March 2019
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| Scrap | Ex-Alang | HMS(80:20) | 25,500 | 25,400 | 25,600 | - 200 | 26,100 | 27,000 |
| Ex-Mumbai | HMS(80:20) | 25,200 | 25,100 | 25,300 | 0 | 25,400 | 25,800 | |
| Ex-Chennai | HMS(80:20) | 24,900 | 24,800 | 25,100 | 0 | 25,500 | 25,400 | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 19,000 | 18,900 | 19,100 | - 200 | 20,000 | 22,000 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 19,000 | 18,900 | 19,100 | - 300 | 20,300 | 21,400 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 20,000 | 19,900 | 20,100 | - 200 | 21,100 | 22,700 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 19,300 | 19,200 | 19,400 | - 300 | 20,500 | 21,500 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 17,800 | 17,700 | 17,900 | - 200 | 18,800 | 20,900 |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 18,700 | 18,600 | 18,800 | - 200 | 19,750 | 21,800 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 18,700 | 18,600 | 18,800 | - 300 | 20,200 | 20,900 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 19,300 | 19,200 | 19,400 | - 300 | 20,800 | 21,500 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 34,150 | 34,100 | 34,200 | - 100 | 35,200 | 36,250 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 31,200 | 31,100 | 31,300 | - 100 | 32,100 | 33,500 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 30,700 | 30,600 | 30,800 | - 100 | 31,900 | 33,400 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 31,300 | 31,200 | 31,400 | - 400 | 32,600 | 34,150 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 33,700 | 33,600 | 33,800 | - 300 | 35,300 | 36,300 | |
| Billet | Ex-Mandi Gobindgarh | 100x100 mm, IS 2831 | 34,400 | 34,300 | 34,500 | - 300 | 35,700 | 36,700 |
| Ex-Durgapur | 100x100 mm, IS 2831 | 31,500 | 31,400 | 31,600 | - 200 | 32,650 | 34,000 | |
| Ex-Rourkela | 100x100 mm, IS 2831 | 31,000 | 30,900 | 31,000 | - 300 | 32,300 | 34,300 | |
| Ex-Raipur | 100x100 mm, IS 2831 | 31,600 | 31,500 | 31,700 | - 400 | 33,050 | 35,150 | |
| Ex-Ahmedabad | 100x100 mm, IS 2831 | 34,200 | 34,100 | 34,300 | - 600 | 35,700 | 36,300 | |
| Ex-Mumbai | 100x100 mm, IS 2831 | 33,900 | 33,800 | 34,000 | - 300 | 35,500 | 36,600 | |
| Ex-Chennai | 100x100 mm, IS 2831 | 33,800 | 33,800 | 34,000 | 0 | 34,700 | 35,200 | |
| Ex-Hyderabad | 100x100 mm, IS 2831 | 33,500 | 33,400 | 33,600 | 0 | 35,000 | 35,200 | |
| TMT | Ex-Delhi/NCR | 12-25 MM, IS 1786- 500 Fe | 37,600 | 37,400 | 37,800 | - 200 | 38,400 | 39,500 |
| Ex-Durgapur | 12-25 MM, IS 1786- 500 Fe | 36,300 | 36,100 | 36,500 | - 200 | 37,500 | 38,800 | |
| Ex-Raipur | 12-25 MM, IS 1786- 500 Fe | 36,000 | 35,800 | 36,100 | - 100 | 37,000 | 37,800 | |
| Ex-Mumbai | 12-25 MM, IS 1786- 500 Fe | 37,600 | 37,400 | 37,900 | - 200 | 38,600 | 39,400 | |
| Ex-Chennai | 12-25 MM, IS 1786- 500 Fe | 38,500 | 38,400 | 38,800 | - 100 | 39,000 | 39,000 | |
| Ex-Hyderabad | 12-25 MM, IS 1786- 500 Fe | 37,000 | 36,800 | 37,200 | 0 | 38,500 | 39,000 | |
| Wire Rod | Ex-Durgapur | Wire Rod(5.5 MM) | 36,500 | 36,300 | 36,600 | - 100 | 37,700 | 39,400 |
| Ex-Raipur | Wire Rod(5.5 MM) | 38,000 | 37,000 | 38,000 | - 400 | 40,000 | 41,200 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
