Indian Steel Market Weekly Snapshot

In the Week-15 (9-14 April, 2018), Indian Steel market remained on positive direction and the prices moved up sharply with some shortage of semis products, strong inquiries & power supply issues.

During these days, prices of Semis & Finished steel products rise approximately INR 500-1,500/MT (USD 8-23) in across major markets by medium & small scale manufacturers.

Also, the large scale producers have raised finished steel prices by INR 500-1,000/MT(USD 8-15) due to poor inventories and supportive demand.

Iron ore and Pellets: Domestic pellet prices in eastern India witnessed an increase up to INR 100/MT W-o-W. However, in other major pellet markets prices have remained stable this week. In Durgapur (eastern India) pellet price assessment has increased INR 100/MT W-o-W. Few trade sources also reported that the pellet prices are not increasing substantially, in proportion to sponge prices which have been increasing from the last few days. KIOCL has recently concluded a deal of 50,000 MT pellets at USD 105/MT, FoB basis.

Scrap: Indian imported scrap market witnessed improved trades activities and increase in inquiries this week, unlike last 3-4 weeks. Imported scrap prices continued marginal downtrend by USD 5-8/MT on W-o-W basis. Shredded in containers booked at USD 383-387/MT, CFR levels while price assessment for HMS 1 from Dubai remained at USD 372-375/MT in containers. Offers for African and European origin HMS (80:20) remained in the range of at USD 350-360/MT, CFR Nhava Sheva. Scrap buying activities are improving in India amid strong billet and finish steel prices and sentiments are expected to remain good in coming days.

Coking Coal: Coking Coal prices have tumbled again, under the influence of over-supply vis-a-vis soft demand. As the tropical cyclone did not cast any damage to the coal transport infrastructure, normal business resumed after the departure of the cyclone. Spot prices of the Premium HCC have sank to around USD 192/MT FoB Australia.

Semi Finished: Indian Semi finished prices increase further and stood all time high since 2010 over strong trade activities during the days. As per SteelMint assessment, the domestic Billet prices have increased by INR 600-1,600/MT (USD 9-25) & Sponge iron by INR 300-900/MT (USD 9-14). While Indian induction grade billet export offers to Nepal increased by USD 15-20/MT W-o-W and hovering at USD 535-540/MT ex-mill, Durgapur & USD 530/MT ex-mill Odisha, Eastern India.

-- Indian Sponge iron export offers to Bangladesh for lumps of grade FeM 78-80, recorded at USD 365/MT CPT Benapole (dry land port of Bangladesh & India) and USD 385/MT CFR Chittagong, Bangladesh.

-- JSW Steel offered Gas based DRI (Sponge iron) at around INR 22,000/MT (USD 339) ex-plant, Dolvi - Maharashtra.

-- Manufacturers in Durgapur, West Bengal & Raigarh, Chhattisgarh are not operating mills at optimum utilization as power cut remained by DVC (Damodar Valley Corporation) in Durgapur & Jindal Power Ltd (JPL) in Raigarh.

-- In the mid of week, SAIL has floated a export tender for 10,800 MT billet from its Durgapur Steel plant. The due date for bid submission is 16th Apr'18.

-- Recently, Jindal Steel offered Granulated Pig iron (Panther shots) at INR 29,500/MT ex-plant, Angul (Odisha) and excluding GST at 18%. Also offering Pig iron from its Raigarh based plant at INR 31,000/MT ex-plant.

-- Tata Metaliks, one of India's major foundry grade pig iron manufacturer has kept its prices unaltered for April'18 bookings, as per reports.

-- Analysts reported, no major movement of pig iron seen globally. And the SteelMint's Pig iron weekly export price assessment stood at USD 385-395/MT FoB India, USD 385-390/MT FoB Brazil and USD 385-395/MT FoB Black sea.

Finish-Long Steel: As per week assessment, Finish Long steel prices have been amplified by around INR 1,000-2,000/MT (USD 15-31) commodity wise amid rising billet prices & domestic demand have played well enough to support market sentiments.

-- SAIL (Steel Authority of India Ltd.) increased finish long steel prices by INR 750/MT & current Rebar 12 mm assessed at INR 44,500-45,000/MT, Ex-Mumbai. After the price hike by large producer indicating as edification among trade participants and bookings were happening on its way.

-- Rathi Steels based North region have increased prices by INR 750/MT on week basis and offering 12 mm at INR 42,350/MT ex-work & excluding GST.

-- Further in a mid week, Goa based Rebar manufacturer increased gauge parity price by around INR 300/MT to INR 2,300/MT & INR 3,300/MT for 10-25 MM & 8-32 MM and current offering 12 mm rebars at INR 42,100-42,500/MT, ex-work & excluding GST.

Central region- Raipur based Wire rod manufacturers increased Wire Rod to HB difference by INR 200/MT to INR 2,100/MT w.e.f. 12.04.18.

Flat Steel Market: Following last week's announcement by major Indian steel manufacturers on increase in domestic flat steel prices, this week traders market has observed price increment by INR 750-1000/MT. Also govt. owned PSU - SAIL (Steel Authority of India Limited) has announced the hike in prices up-to INR 1000/MT in Apr'18.

Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 45,000/MT (ex-Mumbai), INR 45,000/MT(ex-Delhi),INR 45,500-46,000/MT (ex-Chennai). The prices mentioned above are basic prices excluding GST @ 18%.

Trade reference prices (basic) for CRC (IS513) 0.9mm is hovering in the range of INR 50,000-50,500/MT (ex-Mumbai), INR 50,800-51,000/MT (ex-Delhi) and INR 51,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.

Thus supply constraints in few regions coupled with higher prices in global flat steel market compelled the Indian manufacturers to raise the prices in domestic market.However amid slow demand, the situation remains uncertain whether the prices shall be accepted in domestic market or not.

Indian Raw material and Finished Steel reference Prices as on 14 Apr 2018 (Week 15)

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

Indian Export Reference Prices as on 14th Apr'18

Prices in USD/MT
Source: SteelMint Research