Indian Steel Market Weekly Snapshot

During the Week-37 (10-15th Sep'18), Indian spot trades were subdued on average supply movements amid uncertainty in the market over festive mood. The manufacturers have reported mix response on volatility in prices.

As per SteelMint's assessment, in these days the prices of Semis products (Billet & Sponge iron) & Long products have fluctuated by INR 200-800/MT (USD 3-11). In context to Flat steel, the suppliers have maintained offers with limited trade inquiries.

The participants are believed, Indian steel prices to remain strong looking at higher raw materials, average supply and with anticipation of further improve demand from the Indian domestic & exports.

Iron Ore: NMDC conducted e-auction for 76,000 MT iron ore from its Chhattisgarh mines. Quantity offered comprised of 24,000 MT calibrated lump ore, 16,000 MT ROM, 16,000 MT iron ore lump and 20,000 MT iron ore fines. According to market sources report to SteelMint, Indian steel mills have actively participated in booking DR-CLO and fetched a premium of around INR 1,020/MT to INR 5,312/MT (basic) against base price which was INR 4,292/MT (basic).

Indian pellet offers in the domestic market have increased from INR 300-800/MT against the beginning of last week. Assessment for this week in pellets is at INR 9,800/MT, Durgapur (Eastern India) reference pellet price assessment stands at INR 8,700-8,000/MT (delivered) this week. Towards the end of the week, pellet prices fell slightly by around INR 100-200/MT in Raipur and Durgapur.

An eastern India (Odisha) based pellet maker has recently concluded an export deal for around 55,000 MT for regular grade pellets (containing 3% alumina). According to the sources, the deal has been concluded at around USD 150/MT, CFR South Korea.

Indian scrap importers have observed slight slowdown in scrap bookings this week majorly affected by sharp currency depreciation. Imported scrap prices inched up in recent minor deals reported on W-o-W basis. Western coastal steel makers booked West African HMS scrap due to high sponge iron prices.

Offers for UK based containerized Shredded heard in the range of USD 360-365/MT, CFR Nhava Sheva, While deals for European Shredded concluded in the range of USD 357-360/MT, CFR. Dubai and South Africa based suppliers are holding offers in the range of USD 350-355/MT for HMS 1. Prices for HMS 1&2 (80:20) heard in the range of USD 335-345/MT, CFR from West Africa, EU, and UK.

Seaborne coking coal prices rose significantly this week after transactions involving premium low-vol cargoes were heard to have been concluded at higher rates in China as domestic coking coal with low sulphur type were under supply pressure. Due to relative tightness in domestic supply for low-sulphur materials, Chinese end-users continued seeking premium hard low-volatile coking coal cargoes with high CSR, relatively lower ash and sulphur content and were willing to pay a premium. Meanwhile, Indian demand for spot cargoes is robust with the end of monsoon season and an expected boom in construction activity in the coming months. Latest prices for the Premium HCC grade are assessed at around USD 208.50/MT FOB Australia and USD 223.90/MT CNF India.

Semi finished steel: In a week duration, domestic billet offers fluctuated in the range of INR 100-500/MT (USD 1-7) in major markets. However, Sponge iron prices were stable in major markets except in eastern region - Durgapur where offers slump about INR 800/MT over dull demand due to uncertain power cuts by DVC.

-- The current export offers of Billet produced through EA or induction furnaces are evaluated at USD 505-510/MT ex-Durgapur, East India, equivalent to USD 530-535/MT CFR Raxaul border, Nepal.

-- Indian Sponge iron export offers remains firm, price assessment for 78-80 FeM sponge lumps (export grade) stood at USD 370/MT CPT Benapole (dry land port of Bangladesh & India) and USD 390/MT CFR Chittagong, Bangladesh. As per exporters deals are taking place at firm prices and buying majorly large mills based in Chittagong in Bangladesh.

-- Usha Martin has offered Sponge C-DRI (FeM 80 +/-1) at around INR 24,800/MT ex-plant, Jharkhand.

-- Vizag Steel has increased prices in Pig iron by INR 1,000/MT for rest of Sep'18 deliveries and revised prices applicable from 11th Sep'18, as per sources, latest offers would be around INR 30,000/MT for basic grade, ex-plant & excluding GST.

-- Neelachal Ispat Nigam Ltd (NINL)- India's largest and state owned steel grade pig iron manufacturer has raised pig iron prices for steel grade by INR 1,800/MT (USD 25) w.e.f. 11th Sept 2018. The offers for Steel (N1) grade at INR 29,900/MT (USD 411) & Foundry (N2) grade at INR 30,500/MT (USD 420); prices are basic, ex-Cuttack, East India. The Company floats another export tender of 30,000 MT pig iron for end October shipment.

-- SAIL has floated export tenders for 18,500 MT pig iron from its Bokaro Steel plant. Due date for bid submission is 18 Sep'18. The cargo will be shipped from Haldia port and material shipping is scheduled within 31 Oct'18.

-- Jindal Steel has reduced prices by INR 500/MT and offered Pig iron at INR 31,500/MT ex-Raigarh & Panther shots (Granulated Pig iron) at INR 30,000/MT ex-plant, Odisha. Tata Steel is also offered Ferroshots (granulated pig iron) at INR 30,000/MT ex-plant, Kalinganagar, Odisha.

-- SteelMint's Pig iron export price assessment stood at USD 365-370/MT FOB Brazil, USD 370-380/MT FOB Black Sea & USD 380-390/MT FOB India.

-- Industrial power tariff have increased in Maharashtra - by INR 0.50/unit in Jalna, INR 0.09/unit in Wada & INR 0.36/unit in Wardha. The revised power charges are applicable from 1st Sept'18, as per manufacturers.

Indian Finish Long steel contracted on weekly basis and price range affected by INR 400-500/MT in overall regions except in south India and particularly in Mumbai. The producers in south India have strengthened pries due to rise in imported scrap cost and in Mumbai hike in power charges led to spike steel prices.

-- Currently rebar (12-25 mm) price assessed at INR 40,000-40,200/MT ex- Jalna, INR 39,400-39,600/MT ex- Raipur & INR 42,300-42,500/MT ex-Chennai. All prices are basic & excluding GST.

-- The Central India based structure manufacturers retain discount level of INR 600-800/MT as per quantity and current trade reference price hovering at INR 41,000-41,400/MT (40 Angle) and INR 41,100-41,500/MT (200 Beam).

In the starting of the week, Vizag Steel (RINL) - state owned steel maker under the Ministry of Steel has make second hike in its long steel prices by INR 500-1,000/MT in the same month and revised prices were applicable from 11th Sep'18. Prices hike seen in Rebar by INR 700/MT, Structures by INR 500/MT, Rounds by INR 700/MT, Wire rod by INR 500/MT & in Bloom and Pig Iron by INR 1,000/MT.

-- Currently, rebar prices will be offered by the large scale producers close to INR 43,100-43,600/MT ex-Chennai, INR 44,000-44,500/MT in Delhi/NCR for the retail segment, Size - 12 mm & excluding GST at 18%.

-- The Wire rod offers by large producers is around INR 46,000-46,5000/MT in Chennai - South India for 5.5mm, SAE grade- 1008 & excluding GST.

-- As per market participants, few others domestic large players like SAIL is most likely to increase long products prices by about INR 500/MT next week.

-- Wire rod trade discount offered by manufacturers/suppliers in Raipur almost steady compare to last week which is now in the range of INR 800-1,000/MT.

Finish Flat Steel: This week domestic HRC & CRC prices in India have remained stable amid mixed response in traders market. In the beginning of the month Indian major mills announced hike in flat steel prices by INR 1,000-1,500/MT following which prices moved up in traders market last week as well.

This week market participants reported firm demand in Mumbai and Faridabad regions. Thus these regions witness marginal uptrend by INR 500/MT in domestic HRC & CRC prices.However other markets like Hyderabad and Ludhiana reported dull market sentiments.

Thus current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 46,000- 46,500/MT (ex-Mumbai) & INR 46,500/MT (ex-Delhi). The prices for CRC (IS513) 0.9mm is hovering in the range of INR 51,500-52,000/MT (ex-Mumbai) & INR 52,000-52,500/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

Indian HRC export offers to Vietnam - Market sources shared that a west India based steel mill has booked around 15,000 MT HRC for export to Vietnam towards the beginning of this week.The deal was heard to be concluded at around USD 580-585/MT,CFR Vietnam.

Another deal reported this week was 5,000 MT of HRC was booked by major Indian mill at USD 585/MT CFR for October shipments

Indian Raw material and Finished Steel reference Prices as on 15 September 2018 (Week 37)

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

Indian Export Reference Prices as on 15th September'18

Prices in USD/MT
Source: SteelMint Research