Indian Steel Market Highlights Week 21
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Continuing with downtrend sentiments, for week 21 (from 15 May-20 May) the steel market again registered price cut in Semis and Finished Products.
For semi finished, the prices declined 500-1,600/MT (USD 8-25); for long products prices slip around INR 400-1,600/MT (USD 6-25) and for flat steel plunge was in the range of 500-1,000/MT (USD 8-15).
Domestic Iron Ore & Pellet Prices: Indian Iron prices were unaltered post decline up to INR 300/MT in the start of May'17. Although, another substitute that is pellet reported price corrections of INR 100-500/MT due to falling sponge prices in the local market and lull export for the material.
Owing to weak demand Goa E-auction held on 17 May'17 also received dull response only 18.75% was sold out of 16,000 MT offered quantity.
Slump in Coking Coal prices: Coal prices registered further decline by USD 8/MT to USD 182/MT CNF India. Price fall as there is ample supply of the product without any hindrance and the demand remain moderate. On further discussion these coking coal prices will further decline in coming times.
Further fall in Semis Offers: Owing to mute domestic sales, nil exports and bulk scrap vessels lined to be landed on Indian ports pressurized domestic sponge, billet and pig Iron offers. NINL, which is the largest supplier in domestic and exports have reduced pig iron prices by INR 1,300-1,400/MT (USD 20-22).
Thin Trading for Finish Steel: Indian steelmakers have become distressed over falling finish product prices amid lower sales volumes in the domestic market. Notably this week, in domestic market the rebar & structure prices have declined to 3 months low; last seen in Feb'17 and flat prices have declined to 6 months low; last seen in end of Nov-Dec'16
Export Offers Analysis for Week 21:
For this week flat steel makers have slashed the export offers. Current HRC offers dropped by USD 5-10/MT heard in the range of USD 460-465/MT, FoB India.
CRC offers down by USD 20-25/MT to USD 575/MT FoB India. These are only the offers however no trade deals were reported to be concluded at these offers.
Further on this there are Indian sponge exports offer to Bangladesh decline marginally and reported at USD 275-280/MT FoB but as of now there are no major bookings due to volatility and competitive imported scrap offers in the country.
Also, this week a pig iron export tender of NINL for 30,000 MT was unable to get expected bids. The tender were got bids at USD 280/MT and USD 300/MT respectively.
Raw Material and Finish Steel Prices for Week 21
| Products | Markets | Taxes | Prices in INR/MT | W-o-W |
| Pellet Fe 63%, 6-20 mm | Ex-Barbil | ED 12.5%, VAT/CST Extra | 4,000 | -100 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET | 3,650 | 0 |
| Coaking Coal, Premium HCC | CNF India | Prices in USD | 182 | -7 |
| Scrap HMS (80:20) | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 20,700 | -500 |
| C-DRI 80 FeM | Ex-Raipur | ED 12.5%, VAT/CST Extra | 15,600 | -600 |
| P-DRI 80 FeM | Ex-Raipur | ED 12.5%, VAT/CST Extra | 14,000 | -800 |
| Pig iron Steel grade | Ex-Raipur | ED 12.5%, VAT/CST Extra | 24,100 | -400 |
| Billet 125*125 MM | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 26,000 | -700 |
| Rebar (12mm) | Ex-Mumbai( Medium Scale) | ED 12.5%, VAT/CST Extra | 30,200 | -1,000 |
| Ex-Mumbai( Large Scale) | ED 12.5%, VAT/CST Extra | 35,600 | 0 | |
| HRC (2.5-8 mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 39,500 | -500 |
| CRC(0.90mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 46,000 | -500 |
| HR Plate(5-10mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 39,000 | 0 |
| Wire Rod (5.5 mm) | Ex-Raipur | ED 12.5%, VAT/CST Extra | 28,900 | -600 |
| Structure ( 40 Angle) | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 31,000 | -500 |
Sources: SteelMint Research
