Indian Steel Market Weekly Snapshot

During the Week-49 (3-8 Dec) of 2018, Indian domestic trade activities were subdued on average supply movements. The mid size mills reported mix response from the local buyers over uncertainty in the market.

As per SteelMint's assessment, in these days the prices of Semis products - Sponge iron fluctuated by INR 100-300/MT, while Billet prices increased upto INR 500/MT (USD 7). Meanwhile Finished Long steel products registered price hike of INR 400-600/MT (USD 5-8) through the mid size mills.

In context to Flat steel, the suppliers have reduced prices by INR 500-1,000/MT (USD 7-14).

Iron ore & Pellets: Odisha's state-owned miner- Odisha Mining Corporation (OMC) had scheduled iron ore e-auction on 03 Dec'18. Total quantity for the auction was 345,000 MT iron ore Lumps.The miner had cut base prices decreased by INR 400/MT against the previous e-auction conducted on 03 Oct'18.

The auction fetched good response with nearly 78% (270,000 MT) material getting booked. The entire quantity of Koira and Daitari got booked. Bids for lumps offered from Daitari mines observed an increase in bids by INR 250-350/MT to INR 4,400-4,450/MT against base price which was INR 4,100/MT. Lumps offered from Koira mines fetched bids in the range of INR 4,200-4,250/MT against base price INR 4,200/MT.

As per sources report, central India based major pellet maker - Godawari Power & Ispat has closed a bulk deal for around 75,000 MT pellets at around INR 6,450-6,500/MT (basic prices for Raipur, GST extra), for Fe 63% pellets & on advance payment. Nearly 8-10 Raipur based parties have booked this deal following which the pellet maker raised offers to INR 6,700/MT (basic).

Coal: Seaborne premium hard coking coal prices plunged down by $8.75/MT on Thursday in the FOB Australia market, while the HCC 64 Mid Vol prices continued its marginal fall.

Nevertheless, through the start of week, offers for Premium HCC had continued to climb amid strong demand especially for the Premium Mid Vol Goonyella type of coking coal. Meanwhile, Chinese end-users could not consider seaborne coking coal given the temporary halt on imports and current port restrictions in place. Hence, trading activity remained muted with no firm bids or offers heard on the China market. Accordingly, CFR China met coal prices were steady with uncertainties lying ahead in the country.

-- Latest prices for the Premium HCC and 64 Mid Vol HCC grade are assessed at around USD 227.25/MT and USD 185.80/MT FOB Australia respectively.

-- For Indian buyers, the above offers amount to USD 240.30/MT and USD 198.85/MT respectively on CNF India basis.

Scrap: India observed improved interest in imported scrap with trades being sold in the beginning of this week. However, the market remains mostly flat in terms of prices after last weeks' slump and slows down towards the closing of this week to observe clear global price direction in upcoming days. Suppliers hold prices slightly up as year-end market remains anxious.

SteelMint's assessment for containerized Shredded from Europe and UK stands flat at around USD 340-345/MT, CFR Nhava Sheva as against last weeks' report. Availability of Dubai HMS 1 remains tight amid material being sold out and offers are assessed in the range USD 330-335/MT, CFR

Semi finished: Indian Semi finished market observed volatility in prices on fluctuating demand. Sponge offers fluctuated in the range of INR 100-300/MT (USD 1-4) . While Billet offers rise by INR 100-500/MT(upto USD 7).

-- Indian Sponge iron export offers fall marginally by USD 5/MT (W-o-W) in recent trades on account of stronger rupee against US dollar & less trades on slump in global scrap prices. The current offers for lumps of grade FeM 78-80, stand at USD 330-335/MT CPT Benapole (dry land port of Bangladesh & India) & USD 350-355/MT CFR Chittagong, Bangladesh.

-- Indian induction grade billets (100*100 mm) export offers from eastern India, Durgapur hovering at USD 445/MT ex-mill, equivalent to USD 470/MT CFR Raxaul border(Nepal).

-- Steel Authority of India Limited (SAIL) has reduced Pig iron offers by INR 500/MT (USD 7) to INR 29,500/MT (USD 418) from its Bhilai Steel Plant (BSP) based in Central India. Bulk purchase discount remain unchanged at INR 400/MT on above of 500 MT.

-- Vizag Steel - one of the largest suppliers of Pig iron in South India has reduced its prices by INR 1,000/MT (USD 14) to INR 30,000/MT (USD 428) Ex-plant, Vizag, Southern India for Dec'18 deliveries

-- MMTC had floated export tender of 30,000 MT non-alloy Pig Iron (C: 3.6-4.3%; Si: up to 1.24%; Mn < 1%, S: 0.05% max; P: 0.15% Max) on behalf of NINL. The due date for submission of bids is 14:30 hrs on 17 Dec'18. The shipment is scheduled between 11 Jan to 21 Jan'19 from Paradip port.

-- Tata Metaliks Limited (TML), India's one of the major foundry grade pig iron manufacturer has reduced its prices for Dec'18 deliveries by INR 700/MT to INR 33,100/MT ex-plant, Kharagpur, East India.

-- Jindal Steel has offered Pig iron (Steel grade) at INR 29,600/MT ex-plant, Raigarh. Panther shots (granulated pig iron) at INR 28,200/MT & Pooled iron at INR 27,500/MT ex-plant, Odisha.

Finish Long Steel market registered with slight positive direction in most of the regions amid strengthening semi finish prices and trade volume has been notified with near to appropriate levels.

Industrialist are not expecting any major correction in near term and anticipating positive glance for raw materials but few particular locations might get some selling pressure with slow supply movement due to surrounding election.

-- Further, Raipur based Heavy structure manufacturers have slightly reduced trade discount to INR 500-700/MT and current trade reference prices at INR 41,500-41,800/MT (200 Angle), discounts depends upon quantity bookings.

-- Current trade reference rebar prices (12-25 mm) assessed at INR 36,900-37,300/MT Ex- Jalna & INR 35,300-35,600/MT Ex- Raipur, basic & excluding GST.

-- Wire rod trade discount offered by the manufacturers/suppliers in Raipur is almost similar compared to last week which is about INR 1,000/MT.

SAIL - (Steel Authority of India) under Ministry of Steel has rolled over long steel products price, as of now. Although is it heard that in coming days, discounts/rebate may increase through the producer for Dec'18. Prior to this in Nov'18, the company has provided trade discount of INR 500-1,000/MT in rebar, depending on the locations.

After consideration of price revision by major mills, the latest price assessment of rebar through the large players stood at close to INR 41,500-42,000/MT ex-Mumbai. Prices are for 12 mm size & excluding 18% GST.

Finish Flat Steel: This week domestic HRC & CRC prices witness decline in traders market post price cut by INR 1,500/MT by major Indian steel manufacturers in the beginning of the month for Dec'18 deliveries. Meanwhile govt owned SAIL has roll over flat steel prices for Dec'18.

Thin trades, lackluster demand combined with competitive HRC imports to India from major exporting nations can be attributed for correction in HRC prices in domestic market.

Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 44,500/MT (ex-Mumbai) & INR 44,500/MT (ex-Delhi).The prices for CRC (IS513) 0.9mm is hovering in the range of INR 50,000-51,000/MT(ex-Mumbai) & INR 51,500/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

Few trade sources shared that rebates and discounts are also given to escalate buying. Meanwhile buyers are cautious as they expect further downside amid cost effective imports from Japan and Korea.

Indian Raw material and Finished Steel reference Prices as on 8 December 2018 (Week 49)

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

Indian Export Reference Prices as on 8th December'18

Prices in USD/MT
Source: SteelMint Research