Indian Steel Market Weekly Snapshot

Indian steel prices moved downwards in week - 46 (12-14 Nov) owing to weak trade activities. The producers in major markets also stated downfall in spot trade volumes, hence were pressurized to reduced prices.

As per SteelMint's assessment, in these days prices of Semis products (Billet & Sponge iron) have decreased by INR 200-900/MT (USD 3-13) & Finished Long steel by INR 600-800/MT(USD 8-11) . In context to Flat steel, the suppliers have maintained offers with limited trade activities, however export offers have come down.

Presently, buying activities remain dull owing to an inert mood of buyers. Most of the participants adopted 'wait & watch' mode for the next week.

Iron ore & Pellets: Odisha's based merchant iron ore miners are heard to have increased discounts further and are likely to revise price next week.

Declining semi-finished steel trades and plunge in pellet export bids from China has put Indian domestic pellet offers under pressure. Durgapur pellet price has come down significantly by INR 200-300/MT W-o-W to INR 7,500-7,600/MT. Central India (Raipur) pellet offers have decreased sharply by 3-month low to INR 7,400-7,500/MT which is INR 400-500/MT down against INR 7,800/MT-8,000/MT last week.

According to the market participants report to SteelMint, bids for Indian pellet have declined further this week. As per sources, bids for regular grade pellets (Fe 64%) with 3% Alumina around USD 120/MT, CFR China down by USD 10/MT W-o-W.

Imported pellet buying interest of Chinese mills was learned to remain weak amid increased supply of Chinese domestic pellets, resulting in less pellet export trades from India.

-- Steel Authority of India Ltd (SAIL) said it will invest Rs 41,000 crore to ramp up capacity of its Rourkela unit (RSP) from 4 MnT pa to 10 MnT pa.

Indian imported scrap market remained silent amid subdued finish steel sales. Easier availability of local scrap remains a preference over imported scrap. Over an expectation of tight global supply on seasonal slowdown local scrap prices remain supported. Amid strengthening of INR and increased domestic scrap prices, market is expected to pick up activities in next couple of weeks.

The assessment of Shredded scrap from Europe/UK stood at USD 355-360/MT, CFR. Offers for Dubai based HMS 1 heard in the range USD 335-340/MT, CFR Nhava Sheva while minor trades for West African HMS scrap concluded at USD 325-330/MT, CFR Goa and Chennai.

Australian coking coal prices remained mostly flat throughout the week, after a $5.50/mt jump at the end of last week.

Deepening concerns about weak steel prices in the Chinese market had resulted in a slowdown in coking coal trading activity.

Moreover, Chinese end-users are heard awaiting results of a conference held in Chengdu for long-term contract price negotiations of 2019 between major domestic coking coal miners and steel mills.

Furthermore, Chinese steelmakers are waiting for updates on 2019 import quotas before taking any new positions currently for buying seaborne coking coal.

Latest prices for the Premium HCC and 64 Mid Vol HCC grade are assessed at around USD 223/MT and USD 195.50/MT FOB Australia respectively.

For Indian buyers, the above offers amount to USD 236.80/MT and USD 209.30/MT respectively on CNF India basis.

Indian Semi finished As per SteelMint assessment, the domestic Sponge iron & Billet prices have declined by INR 200-900/MT (USD 2-16). In this period major fall in Billet seen in Durgapur & Mandi Gobindgarh by INR 700-900/MT on limited inquiries. Further, Sponge iron offers being reduced by INR 200-700/MT in major markets.

-- Indian Sponge iron export offers to Bangladesh have remained firm. The current offers for lumps of grade FeM 78-80, stand at USD 345/MT CPT Benapole (dry land port of Bangladesh & India) & USD 365/MT CFR Chittagong, Bangladesh.

-- Indian medium mills export offers to Nepal hovering at USD 460-465/MT for Billet & USD 545/MT for Wire rod (5.5 mm), ex-mill at Durgapur.

-- RINL had invited two tenders for export of 15,000 MT Blooms (150*150 mm) each, whose due date was 08 Nov'18 has been finalised at around USD 457-460/MT, FoB India - Sources.

-- RSP (Rourkela Steel Plant) tender held on 12th Nov'18 to sell about 5,200 MT steel grade pig iron, had received weak response. The base price for the tender was quoted by RSP at INR 29,400/MT and only 300 MT material have been sold out.

-- This week, SAIL has offered Steel (basic) grade Pig iron from its Bhilai Steel Plant (BSP), Central India at INR 30,000/MT (USD 416) ex-plant & excluding GST.

-- Jindal Steel offered Granulated pig iron (panther shots) at INR 28,000/MT ex-plant, Odisha & Steel grade Pig iron at INR 30,000/MT ex-plant, Raigarh.

-- NINL has kept offers steady for N2 grade & High Silicon (Foundry grade) pig iron which is valid till 20th Nov'18. Offering high silicon (2% to 5%), Foundry Pig iron at INR 29,900/MT (USD 411) & N2 grade Pig iron at INR 29,400/MT (USD 405) ex-plant, Cuttack, East India.

-- SteelMint's Pig iron export price assessment stood at USD 365-375/MT FoB India, USD 345-355/MT FoB Brazil and USD 360-365/MT FoB Black sea.

Finish Long Steel market notice measured demand in overall regions amid limited supply movement resulted price contraction by INR 600-800/MT (TMT/Structure) in most of the specified locations with concerned inventory level among market participants.

However, central region based TMT manufacturers are reluctant to give any major discounts beside INR 100-200/MT due to limited marginal value from billet to TMT.

As per sources, BIS officials have collected Rebar samples from different regions like West and South to verify and to secure the key commodity quality which is being based in construction sector.

Further, Raipur based Heavy structure manufacturers have lessens discount range to INR 500-800/MT and current trade reference prices at INR 42,000-42,300/MT (200 Angle) upon booking quantity.

Current trade reference rebar prices (12-25 mm) assessed at INR 37,100-37,400/MT Ex- Jalna, INR 36,000-36,300/MT Ex- Raipur. All prices mentioned above are basic & excluding GST.

-- As per sources, Major Indian Mills offers discount recently in rebar by INR 500/MT for rest of November. The current trade reference prices for 12mm rebar by large Steel producers is around INR 43,200-43,700/MT (ex-Mumbai).

-- Steel Authority of India Ltd (SAIL) reduced wire rod offers by INR 800/MT for November deliveries and current offering at INR 43,000/MT (5.5-6mm, ex-Bhilai).

-- Wire rod trade discount offered by the manufacturers/suppliers in Raipur is slightly increased compare to last week which is now in the range of INR 1,000-1,500/MT.

Finish Flat Steel: Indian HRC and CRC prices have remained unchanged amid bearish market sentiments post Diwali holidays.Dull trades on liquidity issues and decline in auto sales volumes kept domestic HRC,CRC prices largely stable.

The current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 46,500/MT (ex-Mumbai) & INR 47,000/MT (ex-Delhi). The prices for CRC (IS513) 0.9mm is hovering in the range of INR 52,500/MT (ex-Mumbai) & INR 53,000-53,700/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

Indian HRC export offers to Vietnam - Imported HRC offers to Vietnam fell by USD 15/MT from India compared to the offers assessed last week.Currently HRC (SAE 1006) from India to Vietnam is assessed around USD 525/MT CFR basis. Last week imported HRC offers from India were at USD 540/MT CFR basis. However no deals at revised prices have been reported yet.

Indian Raw material and Finished Steel reference Prices as on 17 November 2018 (Week 46)

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

Indian Export Reference Prices as on 17th November'18

Prices in USD/MT
Source: SteelMint Research