Daily Update: Indian Semis Offers Decline on Demand Concern
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Indian steel prices moved down trend today by INR 100-500/MT due to weak demand and rising stock with the mid sized mills. As per participants, inquiries continued weak from the re-rollers owing to poor off take in finished steel products.
The Billet prices fall by INR 100-500/MT and majorly in Hyderabad by INR 500/MT & in Raipur by INR 300-400/MT, as per daily assessment.
Meanwhile Sponge iron marked fall of INR 100-300/MT in Central & Eastern regions, which are the major producers in India.
Industry participants believed that, prices less likely to find support on assumptions of average demand and expected price fall in raw materials.
SteelMint's latest price assessment for induction furnaces billet in Indian market stood at INR 30,900-34,400/MT (USD 448-499) ex-plant.
Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 18,800-20,100/MT (USD 272-292); prices are ex-plant & excluding GST.
Rupee & BSE Sensex
-- On 26th March 2019 (Tuesday) INR to USD exchange rate stood at INR 68.90.
-- ICEX (Indian Commodity Exchange Ltd) Apr'19 contract for STEELLONG today open at INR 33,740/MT & last traded (IST 18:05) at INR 33,710/MT.
-- BSE Sensex closed at 38,233(+424) on Tuesday, as against last day (Monday) at 37,808(-355).
-- NSE Nifty50 index was closed today at 11,483(+129).
Raw Materials
-- South Korean steel major - POSCO has signed a term contract with west India pellet maker - Jindal SAW, SteelMint learned from a market source. The pellet maker will supply four export vessels carrying 55,000 MT pellets each till Dec'19.
-- According to market sources report to SteelMint, assessment for South African lump to India is heard at around USD 114-115/MT, CNF Kandla.
-- Imported scrap offers to India for HMS 1&2 (80:20) Dubai origin containers stood at around USD 320/MT, CFR Nhava Sheva.
-- Silico Manganese offers remain stable in the domestic and global market. Offers stood at INR 67,500/MT ex-Durgapur and INR 66,500/MT ex-Raipur.
Semi Finished
-- Indian induction grade billet (100*100 mm size) export offers to Nepal are reported at USD 455-460/MT (ex-mill at West Bengal), equivalent to USD 485-490/MT CFR Nepal (Raxaul border).
-- SAIL has schedule a auction to sale of about 5,900 MT basic grade Pig iron on 27th Mar'19 from its Rourkela Steel Plant (RSP).
-- Raipur, Central India based Integrated plants offers decreased by INR 200-300/MT, offering Sponge P-DRI at INR 18,500-18,700/MT & Sponge DR CLO grade at INR 20,900-21,100/MT ex-plant.
-- In West Bengal - Durgapur, big manufacturers have decreased sponge prices by INR 300-400/MT D-o-D; offering P-DRI at INR 18,700-18,900/MT.
-- Aloke Steel Industries (Jharkhand) offered Fem 78-80 C-DRI lumps at INR 19,900/MT & Sponge mix material (60:40) at INR 19,600/MT ex-plant.
-- Apple Industries in Bellary (Karnataka) offered Sponge FeM 83+ P-DRI lump at INR 19,700/MT & Billet at INR 32,400/MT ex-plant.
-- BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 18,700-18,800/MT ex-Bellary, an official reported.
-- BIOP Steels in South India has offered FeM 80 & 82 C-DRI lumps at INR 19,200/MT & 19,600/MT ex-plant, Karnataka; an official reported.
-- Hyderabad, South India based steel manufacturers reduced their Billet offer by INR 500/MT to INR 32,500/MT. And offering 12 MM Rebar at around INR 36,000/MT. prices are ex-plant & excluding GST.
Finished Long
-- Today trade discounts in Raipur Wire rod by re-sellers have raised to INR 1,000/MT as against last day at INR 600-800/MT. The basic offers for 5.5 mm Wire rod is hovering at INR 38,200/MT ex-Raipur & INR 36,800-37,000/MT ex-Durgapur.
-- Mid size mills wire rod export offers from Durgapur assessed at USD 530/MT ex-mill, which is equivalent to USD 560/MT CNF Nepal (Raxaul border).
-- Mandi Gobindgarh, North India based ERW pipe manufacturers offers reported at around INR 40,300/MT ex-plant & excluding GST.
-- Raipur, Central India based ERW pipe manufacturers decreased prices by INR 300/MT & offers reported at around INR 37,200/MT ex-plant & excluding GST.
Reference prices as on 26th March 2019
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| Scrap | Ex-Alang | HMS(80:20) | 26,100 | 26,000 | 26,200 | - 300 | 25,600 | 25,800 |
| Ex-Mumbai | HMS(80:20) | 25,000 | 24,900 | 25,100 | 0 | 24,800 | 25,000 | |
| Ex-Chennai | HMS(80:20) | 24,500 | 24,400 | 24,700 | - 100 | 24,800 | 25,000 | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 20,100 | 20,000 | 20,200 | - 300 | 19,300 | 19,600 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 18,800 | 18,700 | 18,900 | - 300 | 18,600 | 20,000 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 19,900 | 19,800 | 20,000 | - 300 | 19,700 | 21,000 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 19,100 | 19,000 | 19,200 | 0 | 19,000 | 20,200 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 18,800 | 18,700 | 18,900 | - 350 | 18,100 | 18,400 |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 18,600 | 18,500 | 18,700 | - 350 | 18,400 | 19,800 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 18,700 | 18,600 | 18,800 | 0 | 18,400 | 19,700 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 19,000 | 19,000 | 19,100 | 0 | 18,800 | 20,400 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 34,050 | 34,000 | 34,100 | - 250 | 33,800 | 34,350 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 31,400 | 31,300 | 31,500 | - 200 | 31,300 | 31,100 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 30,600 | 30,500 | 30,600 | - 200 | 30,200 | 31,000 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 31,000 | 30,900 | 31,100 | - 400 | 30,900 | 31,900 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 33,300 | 33,200 | 33,400 | - 200 | 33,000 | 34,700 | |
| Billet | Ex-Mandi Gobindgarh | 100x100 mm, IS 2831 | 34,400 | 34,400 | 34,500 | - 200 | 34,100 | 34,800 |
| Ex-Durgapur | 100x100 mm, IS 2831 | 31,800 | 31,700 | 31,900 | - 200 | 31,600 | 31,600 | |
| Ex-Rourkela | 100x100 mm, IS 2831 | 30,900 | 30,800 | 31,000 | - 100 | 30,500 | 31,400 | |
| Ex-Raipur | 100x100 mm, IS 2831 | 31,500 | 31,400 | 31,600 | - 350 | 31,400 | 32,800 | |
| Ex-Ahmedabad | 100x100 mm, IS 2831 | 34,200 | 34,100 | 34,300 | - 200 | 33,700 | 34,950 | |
| Ex-Mumbai | 100x100 mm, IS 2831 | 33,500 | 33,400 | 33,600 | - 200 | 33,200 | 34,950 | |
| Ex-Chennai | 100x100 mm, IS 2831 | 32,200 | 32,100 | 32,300 | - 150 | 33,000 | 34,200 | |
| Ex-Hyderabad | 100x100 mm, IS 2831 | 32,500 | 32,400 | 32,600 | - 500 | 32,500 | 33,800 | |
| TMT | Ex-Delhi/NCR | 12-25 MM, IS 1786- 500 Fe | 37,700 | 37,600 | 37,900 | + 200 | 36,800 | 37,400 |
| Ex-Durgapur | 12-25 MM, IS 1786- 500 Fe | 36,700 | 36,500 | 36,900 | - 300 | 36,000 | 36,000 | |
| Ex-Raipur | 12-25 MM, IS 1786- 500 Fe | 36,000 | 35,900 | 36,100 | - 100 | 35,500 | 35,900 | |
| Ex-Mumbai | 12-25 MM, IS 1786- 500 Fe | 37,200 | 37,000 | 37,500 | 0 | 36,800 | 38,300 | |
| Ex-Chennai | 12-25 MM, IS 1786- 500 Fe | 37,500 | 37,300 | 37,700 | 0 | 38,000 | 38,600 | |
| Ex-Hyderabad | 12-25 MM, IS 1786- 500 Fe | 36,000 | 35,800 | 36,200 | - 500 | 36,000 | 37,200 | |
| Wire Rod | Ex-Durgapur | Wire Rod(5.5 MM) | 36,900 | 36,700 | 37,200 | - 200 | 36,500 | 36,800 |
| Ex-Raipur | Wire Rod(5.5 MM) | 38,200 | 37,200 | 38,200 | 0 | 37,700 | 39,000 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
