Indian Steel Market Weekly Snapshot

Domestic steel prices rallied during the Week 6 (4-9 Feb'19) on improved domestic demand & rising raw material prices. The producers claimed that, the consistent increase in raw materials has pushed up the input cost, resulting in hike in steel prices.

As per SteelMint assessment, the prices of Semis products have inclined by INR 1,000-2,000/MT (USD 14-28) & Long steel by INR 1,500-2,000/MT (USD 21-28). Also, the Flat steel prices have increased up to INR 1,000/MT (USD 14) this week.

Iron ore and Pellets

Odisha based major merchant iron ore miners have increased offers in both fines and lumps by INR 200-300/MT this week amid recent hike in Indian pellet export prices. OMC Iron Ore Lump e-auction fetches dull response with nearly 42% (146,000 MT) material getting booked.

India pellet offers have increased sharply following iron ore price hike by Odisha merchant miners and exports offers post vale incident. Raipur (Central India) based pellet makers increased offers by INR 900/MT and SteelMint's assessment stood at INR 7,000/MT (Ex-Raipur) against the last week's assessment at INR 6,100/MT. Durgapur pellet prices have witnessed increase sharply by INR 600/MT to INR 6,500/MT this week against last week's assessment of INR 5,900/MT.

Indian pellet export prices have moved up in recent export deal concluded 50,000 MT pellet export deal for Fe 64% and 3% Alumina. SteelMint's assessment for regular grade pellets has increased to USD 124-125/MT, CFR China which was at USD 116-117/MT, CFR last week

Coal

Seaborne coking coal prices have remained stable so far this week, as the Chinese market went off on their week long Lunar New Year holidays. In addition, uncertainties prevail concerning the emergence of customs clearance issues with new import restrictions in place for Australian coking coal cargoes arriving at ports in northeastern China.

Meanwhile, the devastating Queensland floods in northeast Australia continue to affect coal production in the Bowen Basin, which produces almost a third of the world's coking coal.

Moreover, transport of coal from central and north Queensland mines has been severely disrupted after heavy torrential rains poured incessantly in the state over the last week. Also, the Abbot Point Coal Terminal has been closed since Friday.

Latest offers for the Premium HCC grade are assessed at around USD 203.50/MT FOB Australia, higher by about USD 1.69/MT than the average price of USD 201.81/MT in the week gone by (28 Jan-1 Feb '19). Current prices for the 64 Mid Vol HCC grade are assessed at around USD 179.50/MT FOB Australia.

Scrap

Indian imported scrap market observed a lift in prices by USD 10-15/MT on a W-o-W basis following sharply increased global prices. Shredded scrap from UK and USA traded in containers in the range USD 340-345/MT, CFR Nhava Sheva.

-- Domestic scrap prices edged up by around INR 400-500/MT on improving local prices for billet and rebar.

-- SteelMint's assessment for containerised Shredded stands in the range USD 335-345/MT, CFR Nhava Sheva.

-- Dubai and South Africa HMS assessed at USD 330-335/MT, CFR and assessments of HMS 1&2 from UK/Europe and West Africa stand at around USD 320-325/MT, CFR and USD 315-320/MT, CFR depending on quality.

Semi Finished

Semi finished steel market showed improvement on weekly basis, domestic sponge iron offers moved up by INR 1,000-1,500/MT & Billet prices upto INR 2,000/MT.

-- India's current export offers for Sponge iron lumps, bag packed (FeM 78-80) remained firm at USD 320/MT CPT Benapole (dry port of India & Bangladesh) & USD 335-340/MT CFR Chittagong, Bangladesh for 80 FeM coal based sponge lumps.

-- Indian induction grade billet (100*100 mm size) export offers to Nepal are reported at USD 455-460/MT (ex-mill at West Bengal), equivalent to USD 480/MT CFR Nepal (Raxaul border).

-- Jindal Steel has offered Pig iron (Steel grade) at INR 27,200/MT ex-plant, Raigarh, Panther shots (granulated pig iron) at INR 26,200/MT & Pooled iron at INR 25,500/MT ex-plant, Angul, Odisha.

-- Neelachal Ispat Nigam Ltd (NINL) reduced its pig iron prices by INR 500/MT (USD 7/MT) on 5th Feb'19 & the latest offers by the company floated for Steel grade is at INR 26,400/MT (USD 368/MT), N2 grade is at INR 27000/MT (USD 377/MT) and Foundry (High silicon) grade is at INR 27,500/MT (USD 384/MT); prices are basic, ex-Cuttack, East India.

-- RSP (Rourkela Steel Plant) tender conducted today for sale of about 10,000 MT steel grade pig iron in which about 3,300 MT was sold out at the base price of INR 26,800/MT, while remaining about 67% (6,700 MT) material remained unsold.

-- Vizag Steel has issued an export tender of 25,000 MT basic grade steel making Pig iron for any country other than Nepal. The tender is due on 13 Feb'19.

Finish Long

Finish Long Market observed better response and sufficient trade volume were registered in overall regions over strong raw material prices

TMT/Structure prices moved up sharply around INR 1,500-2,000/MT and trade discounts were measured by manufacturers as per current scenario. Further, Raipur based Heavy structure manufacturers have maintained trade discount range to INR 600-800/MT and current trade reference prices at INR 42,700-43,000/MT (200 Angle) and upon booking quantity. Whereas, Mumbai medium range structure manufacturers are offering 100 Channel at INR 40,900/MT, Ex-work & Large Mills offering 100/125 Channel around INR 43,500/MT Ex-Stock yard - Mumbai.

-- Current trade reference rebar prices (12-25 mm) assessed at INR 38,100-38,300/MT Ex- Jalna, INR 36,700-36,900/MT Ex- Raipur. All prices mentioned above are basic & excluding GST.

-- Major Indian mills have announced to increase in long products prices by INR 500-1,000/MT for Feb'19 deliveries as per sources. SAIL further hiked prices in rebar today by about INR 500/MT looking at sudden price increase in secondary market & expecting to be good demand in domestic market in Feb and Mar'19.

-- Presently, price assessment of rebar through the large players is close to around INR 39,800-40,300/MT ex-Mumbai. Prices are for 12 mm size & excluding 18% GST.

-- Wire rod trade discount offered by the manufacturers/suppliers in Raipur has sharply reduced and is now hovering at INR 300-500/MT.

Finish Flat

This week Indian HRC & CRC prices witnessed uptrend in traders market post announcement of price hike by major steel manufacturers towards end of last week.

Major Indian steelmakers had announced price hike of INR 750-1000/MT in flat steel for Feb deliveries in anticipation of higher steel prices in global market post Chinese New Year holidays.Thus its effect is also seen in HRC & CRC prices in traders market this week by INR 500-1000/MT.

Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 40,500-41,000/MT (ex-Mumbai) and INR 41,000 /MT (ex-Delhi).The prices for CRC (IS513) 0.9mm is hovering in the range of INR 46,000/MT (ex-Mumbai) and INR 45,300-47,300/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

Indian Raw material and Finished Steel reference Prices as on 9 February 2019 (Week 6)

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

Indian Export Reference Prices as on 9th February'19

Prices in USD/MT
Source: SteelMint Research