Indian Steel Market Highlights, Week 36

During the Week-36 (28 Aug-02 Sep), Indian Steel Industry observed slight fluctuation in prices amid moderate demand in the domestic market. Meanwhile, the Industry participants are hopeful for the bright trends owing to higher raw material prices and favorable exports of Indian made steel.

Raw Material: NMDC, largest Iron ore miner increased the Iron ore offers by 9% (upto INR 240/MT) for September deliveries and OMC has kept base prices majorly stable for upcoming e-auction scheduled on 07 Sept.

Pellets offers in domestic market almost remained firm owing to limited inquiries where as an East India based pellet manufacturer have concluded an export deal at USD 115/MT, CFR China for Sept shipment.

Domestic scarp offers almost remained firm with marginal fluctuation of INR 200-300/MT owing to heavy rainfall in western regions and approaching holiday's. Indian imported scrap market remained silent this week. Offers fell marginally by USD 5-10/MT W-o-W. Shredded scrap offers are assessed at USD 340/MT, CFR Nhava Sheva.

Coal: Coking Coal prices have sky-rocketed on aggressive demand, and now the prices have become unbearable for the buyers. Spot prices of Premium HCC have gone up to USD 208.5/MT FoB Australia. Most Chinese steel makers--the major buyers--were heard to have decided to lower imports in view of the abruptly high prices in Australia. Given the demand scenario, the momentum of the rising Coking Coal prices is likely to slacken.

Semis Finished Update: Indian billet prices remain volatile this week due to slow off take of finished goods. Steel demand generally slows down during this period due to monsoons. However domestic prices are unlikely to fall from these levels as export realizations keep high. Interestingly, some mid sized induction furnaces have concluded bulk billet export deals. Large mills do not have allocations at the moment.

Long Steel Update: In a week's duration, the long steel market maintained it volatility in the offers owing to weak demand from the end users. The prices in Eastern and Western Region improved marginally by INR 300-400/MT. In domestic Market the rebar offers are hovering in the range of INR 29,600-33,400/MT. Meanwhile, Structure and Wire rod offers remained firm in a week's duration.

Flat Steel Update: Major Indian steel players are planning to increase the flat steel prices? in first week of Sept by INR ?1,000-1,500/MT in line with surge in raw material prices and coupled with upward trend in global market. ?Despite slow demand in the domestic market Indian manufacturers are anticipating further rise in domestic flat steel prices? as they are having good realizations of sales in export market.

Indian Raw material and Finished Steel reference Prices as on 2 Sep (Week 36)

Prices are Ex-works, Exclusive of GST at 18%

Indian Export Reference Prices

Source: SteelMint Research