Indian Steel Market Highlights, Week 24
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Indian steel market remained downtrend in the Week 24 as the prices dipped owing to lack of domestic demand and also due to lower export orders.
Also, approaching GST (Goods and Service Tax) is the major concerned for Indian Steel Market which is to be implemented from 1st July'17.
During the week prices of Semis & Finished products down approximately by INR 500-1,000/MT (USD 8-15) across major trading markets.
- Iron Ore: NMDC rolled over the prices for Jun'17 deliveries, last week other large private miners in Odisha namely Rungta and Essel Mining cut their prices in the range of INR 75-250/MT. These miners announced the cut owing to the sharp fall in the sponge offers and also to pick up the orders.
- Pellets: With improved demand through exports, Indian domestic pellet offers have slightly increased by INR 100-200/MT. The fresh export offers for Indian origin pellet are evaluated at USD 84/MT CFR China which is equivalent to USD 75/MT FOB India.
- Coking Coal: Coking Coal spot prices slightly increase by USD 4/MT to USD 159/MT CFR India. Indian steel makers have imported the coal for stocking as well as catering to their regular consumption.
- Semis Market Highlights: Domestic market registered a fall in the Billet offers approximately INR 1,000/MT for week 24 due to weak demand and quite export market.
Indian billet export trade has slowed down in last couple of months owing to lower prices in global market. Billet exporters are struggling to find buyers at desired prices. Exports offers are at USD 410/MT, but the bidders are not going above USD 390-400/MT, according to market participants.
- Finish Steel Market: Indian large producers like RINL and JSW slashed the offers up to INR 1,000/MT for Jun'17 which pressurized the medium/small scale producers to reduce their offers by INR 500-1,000/MT. This reduction in the offers was also due to weak demand.
Major flat steel makers kept their offers unaltered but are offering the discounts of INR 500-1,500/MT, as per the market sources. Arrival of imported cargoes pressurized the domestic market and are registered a fall in HRC and CRC offers by INR 500/MT. However, due to shortage of HR plates the offers for the product went up by INR 500/MT.
- Crude Steel Production: There was a marginal hike in India's crude steel production to 8.16 MnT in May'17, M-o-M but the consumption surged by whopping 19% M-o-M with registered quantity at 7.4 MnT in May'17.
Raw material and Finish Steel Prices as on Week 24 ( till 10 Jun'17)
| Products | Markets | Taxes | Prices in INR/MT | W-o-W |
| Pellet Fe 63%, 6-20 mm | Ex-Barbil | ED 12.5%, VAT/CST Extra | 3,800 | 0 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET | 3,400 | -250 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 159 | +4 |
| Scrap HMS (80:20) | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 21,100 | -200 |
| C-DRI 80 FeM | Ex-Raipur | ED 12.5%, VAT/CST Extra | 15,800 | -300 |
| P-DRI 80 FeM | Ex-Raipur | ED 12.5%, VAT/CST Extra | 14,100 | -400 |
| Pig iron Steel grade | Ex-Raipur | ED 12.5%, VAT/CST Extra | 22,150 | -450 |
| Billet 125*125 MM | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 26,500 | -500 |
| Rebar (12mm) | Ex-Mumbai( Medium Scale) | ED 12.5%, VAT/CST Extra | 30,100 | -500 |
| Ex-Mumbai( Large Scale) | ED 12.5%, VAT/CST Extra | 33,500 | -1,600 | |
| Wire Rod (5.5 mm) | Ex-Raipur | ED 12.5%, VAT/CST Extra | 29,400 | -900 |
| Structure ( 40 Angle) | Ex-Mumbai | ED 12.5%, VAT/CST Extra | 30,800 | -200 |
| HRC (2.5-8 mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 38,500 | -500 |
| CRC(0.90mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 45,500 | -500 |
| HR Plate(5-10mm) | Ex-Mumbai | Incld ED 12.5%, VAT/CST Extra | 39,500 | +500 |
Source: SteelMint Research and Customs
