Indian Steel Market Weekly Snapshot

Indian Iron & Steel trades observed dull during the week-45 (5th to 10th Nov'18) owing to festive mood in the country.

However despite limited trade inquiries, the producers have maintained offers on assumptions of surge demand in coming days looking at pick season for construction works. Also lessened conversion spread (margins) forced the producers to keep prices strong.

As per assessment, this week prices of Semis & Finished long steel products have slightly increased by INR 200-600/MT (USD 3-9). Meanwhile the Flat steel prices more or less firm over fewer inquiries from the domestic buyers.

Iron ore and Pellets: Odisha's state-owned miner- Odisha Mining Corporation (OMC) entire quantity of iron ore fines put up for auction was sold out with bids being fetched higher by about 25% on an average basis over the set base price.

-- NMDC Donimalai lease has been renewed for the next 20 years. Other formalities are in the process. Earlier lease got expired on 3rd Nov'18.

Domestic pellet trades have slowed down amid festive holiday's, current reference pellet assessment for Raipur is around INR 7,800-8,000/MT (basic) against at INR 7,900-8,100/MT last week. However, buying interest is lower at current offers. Durgapur pellet price assessment is at INR 7,800/MT (delivered); stable against previous week.

The pellet manufacturers are exploring overseas markets and looking for finalizing export deals so as to keep domestic prices supported. Indian Iron pellet export prices to China weaken in recent trades.

-- Central India based pellet maker concludes 50,000tMT export deal to China for lower Al and Dec'18 shipment. Another manufacturer concluded the deal for 2 prompt shipments (2.5% Al) at USD126/MT, CFR China.

Scrap: Indian Imported Scrap market observed short pause amid 'Diwali' festive holidays this week. No major deal heard in the market and assessment remained mostly stable. Participants remain hopeful for pickup in demand with prices to remain supported. Cheaper domestic scrap remains a preference.

-- Assessment for Containerized HMS 1 from Dubai stands in the range USD 330-335/MT, CFR Nhava Sheva, while assessment for Shredded from UK/European remains at USD 355-360/MT, CFR India

Coal: Australian coking coal prices remained mostly unchanged over the week amid thin trading activity in the Chinese market, primarily for concerns over weakening steel prices.

-- In China, activities were slow because end-users had been buying small volumes of coking coal from the ports and had not considered seaborne coking coal as prices were not competitive. However, the CFR China prices were steady due to supply tightness in the domestic market for Premium Low Vol metallurgical coal.

-- In India, the Diwali celebrations resulted in an inactive market. Latest prices for the Premium HCC and 64 Mid Vol HCC grade are assessed at around USD 217.50/MT and USD 195/MT FOB Australia, respectively.

-- For Indian buyers, the above offers amount to USD 232.70/MT and USD 210.20/MT respectively on CNF India basis.

Semi Finished: Amid festive off in the nation, trades was limited for domestic & exports as well. Meanwhile the producers are anticipating for surge in demand from the both Indian domestic & global buyers.

Nepal, which is the major buyer of Indian Billet & Wire rod, the re-rollers in the country are likely resume purchases in coming week which may boost demand for Indian exports.

-- SteelMint's price assessment for Indian induction grade Billet exports to Nepal stood at around USD 465-470/MT & for commercial grade Wire rod at USD 545-550/MT, ex-mill, Durgapur, Eastern India. On CFR basis these price will be charge high by USD 25-30/MT CFR Raxaul border, Nepal.

-- Indian Sponge iron export offers to Bangladesh more or less firm in current week and stood at close to USD 365/MT CFR Chittagong, Bangladesh.

-- JSW Steel - India's largest private steel producer has offered gas based DRI (sponge iron) FeM 80-82 at around INR 24,000-24,250/MT (USD 329-333) ex-works, Dolvi, Maharashtra.

-- Private pig iron producers based in eastern India have rolled over pig iron prices despite limited buying interest from furnace owners. Steel grade offers in Durgapur, which is the most active market stood at around INR 29,300-29,700/MT ex-plant.

Finish Long Steel: Indian Finish long steel prices slightly gain amid limited deals on festive season and most of the regions remain inactive and price range stretched near about INR 400-600/MT (TMT & Structure).

-- Current trade reference rebar prices (12-25 mm) assessed at INR 37,400-37,600/MT Ex- Jalna, INR 36,700-36,900/MT Ex- Raipur. All prices are basic & excluding GST.

-- Raipur based Heavy structure manufacturers have maintained the discount range around INR 600-800/MT and current trade reference prices at INR 42,500-42,800/MT (200 Angle).

-- During past week, North India based structure manufactures have increased guage parity up to INR 2,500/MT particularly in angles and minor changes in channels.

-- India's largest steel maker - JSW Steel has released its production results for the month of Oct'18. The company's crude steel output stood at 1.447 MnT in Oct, up 6% M-o-M.

-- Further the company's long steel output surged significantly by 34% Y-o-Y in Oct'18 and stood at 0.346 MnT as compared to 0.258 MnT in Oct'17. While against Sept'18, it moved up by 16%.

-- Blast furnace grade Wire rod (5.5mm) offers hovering at INR 45,000/MT Ex-plant, Jharkhand.

-- As per sources, Rashmi Group resume Wire rod productions in the beginning of current week which was temporary halt owing to maintenance for almost one and half month.

Finish Flat Steel: Indian flat steel prices remained stable amid limited trades over festive holidays. The current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 46,500/MT (ex-Mumbai) & INR 46,800/MT (ex-Delhi).

The prices for CRC (IS513) 0.9mm is hovering in the range of INR 52,500/MT (ex-Mumbai) & INR 53,500/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

-- Indian mill concluded 20,000t HRC export deal to Vietnam at around $540/t, CFR. Export prices have come down by $10/t W-o-W.

Indian Raw material and Finished Steel reference Prices as on 10th November 2018 (Week 45)

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

Indian Export Reference Prices as on 10th November'18

Prices in USD/MT
Source: SteelMint Research