Indian Steel Market Weekly Snapshot
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Indian Iron & Steel prices slump sharply during the week 48 (26th Nov- 1st Dec) owing to weak demand amid strong supply. The participants reported limited deals for domestic and lessened global inquiries.
The prices this week fall by INR 200-1,000/MT ( USD 3-14), in which Semis prices tumbled by INR 200-1,000/MT, Finished long steel by INR 600-800/MT & Flat steel by INR 500-1,000/MT (USD 7-14).
Indian large mills being poised due to poor off take in Finished steel products owing to slump in Indian secondary & global steel prices. As per participants the producer might cut prices by INR 1,000-2,000/MT for Dec'18 deliveries.
Iron ore & Pellets: Odisha's based major merchant miners slashed iron ore prices this week. Odisha Mining Corporation has decreased iron ore lumps base price for Dec 3rd auction by INR 400/MT against the previous e-auction conducted on 03 Oct'18. NMDC Ltd has slashed iron ore prices from its C.G mines by INR 200-360/MT on 30th Nov18.
As per sources report to SteelMint, one of Central India (Raipur) based pellet manufacturers had concluded a bulk deal of 50,000 MT pellets of Fe 63.5% to around 7 parties in Raipur at the price of INR 6,200/MT (ex-Raipur, GST extra) on immediate delivery. Hence, Pellet prices of Raipur have come down sharply by around INR 500-600/MT W-o-W. Similarly, Durgapur pellet prices also come down by 300-400/MT, W-o-W.
Indian imported scrap market observed increased inquiries on strengthening of Rupee below 70 against USD. Offers fell down almost USD 10/MT over the week following sliding of global prices. Limited trades concluded as market observes "wait & watch" scenario. Participants turn hopeful on improved trade activities amid slight improvement in domestic market.
Offers for containerized Shredded from Europe and UK stand in the range USD 340-345/MT, CFR as against USD 350-355/MT, CFR last week. HMS 1 from Dubai and UK assessed at USD 325-330/MT, CFR Nhava Sheva. West African HMS 1&2 in 20-21 MT container stands at around USD 315-320/MT, CFR.
Seaborne premium-grade metallurgical coal prices on FOB Australia basis jumped higher on the back of strong demand amid supply concerns emerging on account of a major rail line closure in Queensland's Blackwater network operated by Aurizon.
Meanwhile, the Chinese market remained muted on lackluster buying interest in light of the temporary import halt on coal from November to December.
Furthermore, in China declining steel prices, profit levels and the depreciation of the Yuan against the US dollar saw most buyers holding back from coking coal procurement.
Latest prices for the Premium HCC and 64 Mid Vol HCC grade are assessed at around USD 224/MT and USD 189.20/MT FOB Australia respectively.
For Indian buyers, the above offers amount to USD 237/MT and USD 202.20/MT respectively on CNF India basis.
Semi finished: As per SteelMint assessment, the domestic Sponge iron & Billet prices have declined by INR 300-1,000/MT (USD 2-16). In this period major fall in Billet seen in Raipur, Durgapur & Hyderabad by INR 800-1,000/MT on limited inquiries. Further, Sponge iron offers being reduced by INR 200-800/MT in major markets.
-- RSP (Rourkela Steel Plant) tender held today (1st Dec) to sell about 8,400 MT steel grade pig iron. The base price of the tender is about INR 28,700/MT ex-plant.
-- Indian induction grade billets (100*100 mm) export offers to Nepal hovering at USD 445-450/MT ex-mill at Durgapur, this is equivalent to USD 470-475/MT CFR Raxaul border, Nepal. Buying interest remains weak, as per participants.
-- Recently, SAIL has floated the export tender for 16,200 MT billets from its Durgapur Steel Plant. The due date for bid submission is 17:00 hrs as per IST on 03 Dec'18. Prior to this, the company's 13,500 MT Billet export tender was cancelled amid lower bids at around USD 450-455/MT, FoB - Sources.
-- Indian sponge iron export offers decreased by USD 5-10/MT W-o-W, Participants reported few Sponge iron export deals to Bangladesh during the week; price assessment for lumps of grade (FeM 78-80) at USD 335-340/MT CPT Benapole (dry land port of Bangladesh & India) and USD 355-360/MT CFR Chittagong, Bangladesh.
-- Neelachal Ispat - India's largest pig iron manufacturer has reduced its prices by INR 400/MT in latest price circular amid falling steel prices and poor off take in pig iron. The latest offers by the producer for steel grade pig iron floated at INR 28,500/MT (USD 404), ex-works, Odisha.
-- SteelMint's Pig iron export price assessment stood at USD 365-370/MT FoB India, USD 345-355/MT FoB Brazil and USD 355-365/MT FoB Black sea.
Finish Long Steel market assessed with measured demand in overall regions since the beginning of week and production level adjusted as per supply movement. As per assessment, the prices moved down by around INR 600-800/MT in specified locations (TMT/Structure).
Market Participants were assuming that price range remain disturbed amid considerable stocks but sudden improved demand in Semis as well as Finish long elongates the price range by INR 400-500/MT in last couple of day, this has reduced some stock of manufacturers.
Current trade reference rebar prices (12-25 mm) assessed at INR 36,500-36,700/MT Ex- Jalna & INR 35,000-35,200/MT Ex- Raipur. All prices mentioned above are basic & excluding GST.
-- Wire rod trade discount offered by the manufacturers/suppliers in Raipur is almost similar compared to last week which was about INR 1,000-1,200/MT.
-- As per sources, the major Indian mills likely to reduce long product prices by INR 1,000-2,000/MT for Dec'18 and to be declared soon. As per sources, rebar sales of few large mills were quite low than the targeted for Nov'18. The current trade reference prices for 12mm rebar by large steel producers hovering at INR 42,500-43,000/MT ex-Mumbai.
Finish Flat Steel: Amid thin trades and lackluster demand combine with competitive HRC imports to India from China, Russia and Korea leads to correction in HRC prices in domestic market.
Meanwhile this week domestic HRC & CRC prices witnessed further correction by INR 500-1000/MT in traders market over sluggish demand.Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 45,500-46,000/MT (ex-Mumbai), INR 46,000/MT (ex-Delhi) and INR 46,500/MT(ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18% on cash payment basis.
Currently trade reference prices for CRC (IS513) 0.9mm is hovering in the range of INR 50,000-51,000/MT(ex-Mumbai),INR 53,000/MT (ex-Delhi) and INR 53,000/MT (ex-Chennai). The prices mentioned above are basic prices excluding GST@18% on cash payment basis.
Meanwhile India's major steel mill prices are expected to come down in December as the landed cost of imports has turned cost effective than domestic offers.
Indian Raw material and Finished Steel reference Prices as on 1 December 2018 (Week 48)
| Products | Regions | Taxes | Prices in INR/MT | W-o-W |
| Pellet Fe 63%, 6-20 mm | Ex-Barbil,Loaded to wagon | GST at 5% Extra | 6,500 | -550 |
| Iron ore 6-40 mm, Fe 65% | Chhattisgarh | Excluding Royalty, DMF & NMET. GST @ 5% extra | 3,550 | -300 |
| 5-18mm, Fe 63% | Odisha | Ex-mines, Incld Royalty, DMF & NMET, GST extra | 4,900 | -200 |
| Fines Fe 63% | Odisha | Ex-mines, Incld Royalty, DMF & NMET, GST extra | 2,400 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 235 | +1 |
| Scrap HMS (80:20) | Ex-Alang | GST at 18% Extra | 26,600 | -300 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 21,800 | -300 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 20,200 | -400 |
| Pig iron Steel grade | Ex-Raipur | GST at 18% Extra | 29,800 | -400 |
| Billet 125*125 MM | Ex-Raipur | GST at 18% Extra | 31,200 | -800 |
| Rebar (12-25mm) | Ex-Raipur (Medium Scale) | GST at 18% Extra | 35,100 | -200 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 38,500 | -600 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 38,700 | -400 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 46,000 | 0 |
| CRC (0.90mm) | Ex-Mumbai | GST at 18% Extra | 51,000 | -1,000 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 46,000 | -500 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices as on 1st December'18
| Commodity | Particular/Delivery | Size and Grade | Prices | 1W | 1M |
| Pellet | FOB India | 6-20 mm, Fe 64% | 102 | 106 | 126 |
| Scrap | CNF India | HMS(80:20), Europe | 325 | 330 | 335 |
| Billet | FOB India | 150*150, IS 2830 | 452 | 457 | 460 |
| Pig Iron | FOB India | Steel Grade | 368 | 368 | 380 |
| HRC | FOB India | 2.5-8mm, IS 2062 | 532 | 532 | 575 |
Prices in USD/MT
Source: SteelMint Research
