Daily Update: Indian Semis Trade Slowdown
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Indian mid sized steel mills are remain under selling pressure due to poor off take in finished steel products and reduced prices by INR 100-500/MT on day trade activities.
The Billet prices fell majorly in Western India - Gujarat & Maharashtra by INR 400-500/MT, while in remaining markets it drop by INR 100-300/MT. Meanwhile, Rebar prices being declined and largely in North-east regions by INR 400-500/MT.
In context to Sponge iron, prices moved down by INR 100-300/MT day on day, following the price corrections in Billet. As per 100-300 TPD sponge manufacturers in Central & Eastern regions, prices have touched at bottom line looking at high cost Pellets. Hence they are not looking further drop in prices.
SteelMint's latest price assessment for induction furnaces billet in Indian market stood at INR 30,600-34,100/MT (USD 440-491) ex-plant.
Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 18,700-19,700/MT (USD 269-283); prices are ex-plant & excluding GST.
Rupee & BSE Sensex
-- On 27th May 2019 (Monday) INR to USD exchange rate stood at INR 69.53.
-- ICEX (Indian Commodity Exchange Ltd) Jun'19 contract for STEELLONG today open at INR 33,740/MT & last traded (IST 18:20) at INR 33,480/MT.
-- BSE Sensex closed at 39,683(+248) on Monday, as against last day (Friday) at 39,434(+623).
-- NSE Nifty50 index was closed today at 11,924(+80) & Nifty Metal at 2,965(+61).
Raw Materials
-- According to the latest assessment of Coking coal, spot prices of the Premium HCC are reported at around USD 205/MT FoB Australia & USD 218.1/MT CNF India.
-- India's crude steel output moved down by 7% to 8.78 MnT in Apr'19 against 9.41 MnT in the preceding month- WSA.
-- JSW Steel's iron ore purchases from Karnataka e-auctions increased by more than two folds to 2.18 MnT in Apr'19 compared to 1.02 MnT in Mar'19.
-- Melting scrap offers in Western India- Gujarat decline by INR 300/MT in a day trade activities.
Semi Finished
-- Private mills have maintained steel grade pig iron prices and offers through the Neo Metaliks reported at INR 27,800-28,000/MT ex-Durgapur & by Electrosteels at INR 27,500/MT ex-Bokaro, Jharkhand.
-- SAIL has schedule an auction to sale of about 3,000 MT basic grade Pig iron on 31st May'19 from its Rourkela Steel Plant (RSP).
-- Rashmi Metaliks in Durgapur has maintained sponge P-DRI prices despite falling Billet prices & reported at INR 18,500/MT.
-- Raipur based sponge manufacturers have quoted P-DRI at INR 18,700-18,900/MT, however few trades learned at close to INR 18,600/MT ex-plant.
-- Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 18,800/MT & Billet at INR 30,700/MT ex-plant.
-- BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 19,200-19,300/MT ex-Bellary, offers decline by INR 200-300/MT from the last trade; an official reported.
-- Apple Industries in Bellary (Karnataka) offered Sponge FeM 83+ P-DRI lump at INR 20,000/MT & Billet at INR 31,700/MT ex-plant.
-- BIOP Steels in South India has offered FeM 80 & 82 C-DRI lumps at INR 19,100/MT & INR 19,500/MT ex-plant, Karnataka; an official reported.
Wire Rod & Pipe
-- Trade discounts in Raipur Wire rod increased by INR 200/MT to INR 1,300-1,500/MT due to weak demand and steady basic offers at INR 37,500/MT. Meanwhile in Durgapur basic offers slump by INR 300-400/MT to INR 36,000-37,000/MT.
-- Raipur, Central India based ERW pipe manufacturers offers reported at around INR 37,800/MT ex-plant & excluding GST. Offers fall by INR 200/MT D-o-D.
-- Mandi Gobindgarh, North India based ERW pipe manufacturers offers reported at around INR 40,000/MT ex-plant & excluding GST.
Rebar (12 mm)
-- Raipur based - SPEED TMT has kept offers unchanged at INR 35,611/MT.
-- Real Ispat (GK TMT) in Raipur is offering at INR 37,400/MT
-- Jalna based Polaad Steels offers at INR 37,000/MT.
-- Mumbai based Guardian Castings Pvt. Ltd. (Guardian TMT) is offering at INR 35,500/MT.
Note - Prices mentioned above are ex-work, excluding GST & changes are placed on day basis. Prices are subject to reconfirmation.
Reference prices as on 27th May 2019
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| Scrap | Ex-Alang | HMS(80:20) | 25,500 | 25,400 | 25,600 | - 300 | 25,800 | 26,900 |
| Ex-Mumbai | HMS(80:20) | 24,800 | 24,800 | 25,000 | 0 | 25,100 | 25,000 | |
| Ex-Chennai | HMS(80:20) | 23,600 | 23,600 | 23,800 | 0 | 23,400 | 24,300 | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 19,500 | 19,400 | 19,600 | - 100 | 19,500 | 19,300 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 18,700 | 18,600 | 18,700 | - 50 | 18,900 | 18,900 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 19,700 | 19,600 | 19,800 | - 200 | 19,800 | 19,800 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 19,100 | 19,000 | 19,200 | - 150 | 19,000 | 19,200 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 18,300 | 18,200 | 18,400 | - 100 | 18,400 | 18,100 |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 18,600 | 18,500 | 18,700 | - 200 | 18,800 | 18,750 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 19,000 | 19,000 | 19,200 | - 100 | 18,500 | 18,900 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 19,400 | 19,300 | 19,500 | 0 | 19,000 | 19,400 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 33,700 | 33,600 | 33,800 | - 300 | 34,500 | 34,200 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 31,100 | 31,000 | 31,200 | - 100 | 31,500 | 31,250 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 30,100 | 30,000 | 30,100 | - 200 | 30,700 | 30,800 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 30,600 | 30,600 | 30,800 | - 200 | 30,900 | 30,900 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 31,600 | 31,500 | 31,700 | - 350 | 32,700 | 33,450 | |
| Billet | Ex-Mandi Gobindgarh | 100x100 mm, IS 2831 | 34,100 | 34,000 | 34,200 | - 300 | 34,850 | 34,500 |
| Ex-Durgapur | 100x100 mm, IS 2831 | 31,500 | 31,400 | 31,600 | - 100 | 32,000 | 31,600 | |
| Ex-Rourkela | 100x100 mm, IS 2831 | 30,600 | 30,500 | 30,600 | - 200 | 31,000 | 31,100 | |
| Ex-Raipur | 100x100 mm, IS 2831 | 31,200 | 31,100 | 31,300 | - 250 | 31,600 | 31,650 | |
| Ex-Ahmedabad | 100x100 mm, IS 2831 | 32,200 | 32,100 | 32,300 | - 400 | 32,800 | 33,300 | |
| Ex-Mumbai | 100x100 mm, IS 2831 | 31,800 | 31,700 | 31,900 | - 350 | 33,000 | 33,650 | |
| Ex-Chennai | 100x100 mm, IS 2831 | 32,000 | 32,000 | 32,200 | - 100 | 31,900 | 32,200 | |
| Ex-Hyderabad | 100x100 mm, IS 2831 | 31,700 | 31,500 | 32,000 | - 300 | 32,000 | 32,500 | |
| TMT | Ex-Delhi/NCR | 12-25 MM, IS 1786- 500 Fe | 37,100 | 36,900 | 37,200 | - 500 | 37,500 | 37,900 |
| Ex-Durgapur | 12-25 MM, IS 1786- 500 Fe | 36,600 | 36,500 | 36,700 | - 400 | 37,000 | 36,500 | |
| Ex-Raipur | 12-25 MM, IS 1786- 500 Fe | 35,300 | 35,200 | 35,400 | - 100 | 35,200 | 35,400 | |
| Ex-Mumbai | 12-25 MM, IS 1786- 500 Fe | 35,000 | 34,900 | 35,100 | - 200 | 35,900 | 36,900 | |
| Ex-Chennai | 12-25 MM, IS 1786- 500 Fe | 36,700 | 36,500 | 36,900 | - 100 | 37,100 | 37,500 | |
| Ex-Hyderabad | 12-25 MM, IS 1786- 500 Fe | 35,800 | 35,600 | 36,000 | - 200 | 36,000 | 36,200 | |
| Wire Rod | Ex-Durgapur | Wire Rod(5.5 MM) | 36,800 | 36,500 | 37,500 | - 400 | 37,500 | 37,100 |
| Ex-Raipur | Wire Rod(5.5 MM) | 36,800 | 36,100 | 37,500 | - 100 | 37,100 | 38,200 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
