Indian Steel Market Weekly Snapshot

Indian steel market on positive trend towards the beginning of Week - 7 (9-16 Feb), however post the mid of week prices rigorously on down trend due to limited buying interest.

As per industry sources, looking at higher price range, the buyers away to take positions which in turn significant fall in prices as selling price rise with them.

As per SteelMint's assessment, in these days prices of Semis products (Billet & Sponge iron) have increased by INR 100-700/MT (upto USD 10) & Finished Long steel by INR 500-1,000/MT.

Inline Flat steel products, the prices increased by INR 500-1,000/MT by major steel manufacturers.

Iron ore and Pellets

Odisha based major merchant iron ore miners have hiked fines prices by INR 400/MT & lumps by INR 500-600/MT in this week. Few major merchant miners are heard to have utilized their EC limits for the fiscal year FY'19 owing to which they do not have much material to offer in the market till March.

India pellet offers have increased sharply this week further by INR 300-700/MT amid a hike in sponge prices and expectation of hike in iron ore prices by Odisha merchant miners.

-- Durgapur pellet offers have witnessed increased by INR 900-1,200/MT to INR 7,300-7,500/MT. Raipur (Central India) based pellet makers have increased offers almost three months high to INR 7,500- 8,000/MT (ex-Raipur) against the last week's assessment at INR 6,800/MT.

-- Buying interest for Indian pellets in the seaborne market remains dull this week as the market seeks more clarity on the impact of Vale supply disruption. A pellet export tender of 50,000 MT by a state-owned was heard to have concluded at bids of around USD 116/MT, FoB India, consisting Fe 64% content and less than 2% alumina.

Coal

Seaborne premium hard coking coal prices strengthened on greater buying interest amid supply concerns emerging among end-users, although delivered prices to China witnessed a slight dip amid restrictions and prolonged customs clearance for Australian coking coal. Even though the Chinese buyers have returned after their week-long celebration, market activity remained thin so far this week. No firm offers were heard as market participants were still assessing the restrictions imposed on Australian coking coal arriving in China.

In Australia, operations at the Abbot Point Coal terminal are expected to resume soon, and minimal impact is expected given that the force majeure is not due to mining-related issues. However, sellers are heard expected a tightening supply in the seaborne market, as mining activities slowed down during the heavy rains. This could incentivize increased demand for seaborne coking coals by end-users.

-- Latest offers for the Premium HCC grade are assessed at around USD 208.50/MT FOB Australia, while offers for the 64 Mid Vol HCC grade are assessed at around USD 177.50/MT FOB Australia. For Indian buyers, the above offers amount to USD 219.65/MT and USD 188.65/MT respectively, CNF.

Scrap

Indian importers actively booked HMS scrap on improved sentiments in steel market amid surge in domestic steel prices. Dubai origin cargoes booked in the range of USD 335-340/MT CFR up by USD 5-10/MT W-o-W for short term deliveries. After moving up sharply by INR 700-800/MT domestic scrap prices have corrected down again in the second half this week. Meanwhile the participants are waiting for more clarity in the near terms.

-- SteelMint's assessment for containerized Shredded stands in the range USD 345-350/MT, CFR Nhava Sheva, but hardly any major deal concluded.

-- UK and South Africa HMS 1 was being offered at around USD 335-338/MT CFR and assessment of West Africa HMS stand at around USD 320-325/MT, CFR

Semi Finished

On weekly basis semis market showed improvement , domestic Sponge offers surge by INR 100-500/MT & Billet by INR 200-700/MT (USD 3-10). However trades remain on lower-side resulted slump in prices by the end of week days.

-- RINL has concluded the tender of 2 lots for 15,000 MT billet (90*90 mm & 65*65 mm) which bid due date was on 6th Feb'19. The tender was heard to be concluded at around USD 440/MT, FoB India.

-- Indian induction grade billet (100*100 mm) export offers to Nepal are reported at USD 460-465/MT (ex-mill at Durgapur, West Bengal), equivalent to USD 490-495/MT CFR Nepal (Raxaul border).

-- As per exporters in eastern India (Odisha & Jharkhand), recent few deals concluded for sponge iron at around USD 330-335/MT CPT Benapole (dry port of India & Bangladesh), equivalent to USD 350-355/MT CFR Chittagong (Bangladesh) as against last week at close to USD 320/MT CPT & USD 340/MT CFR Chittagong.

-- RSP (Rourkela Steel Plant) tender held today (16th Feb) to sell about 6,100 MT steel grade pig iron has received good response as entire material have been sold on increase base/bid prices at INR 27,000-27,150 /MT ex-plant.

-- Sources reported- a Western India based private pig iron manufacturer and exporter has concluded its 25,000 MT Basic grade Pig iron export tender to Bangladesh at around USD 355-360/MT on FoB India basis for Feb-end delivery.

-- Jindal Steel has offers Pig iron (steel grade) at INR 28,300-28,500/MT ex-Raigarh, Granulated Pig iron (Panther shots) at INR 27,000/MT & Pooled iron at INR 26,500/MT ex-Angul, Odisha. Bulk purchase discounts being offered by INR 100-300/MT.

-- Neelachal Ispat (NINL) has increased steel grade pig iron prices by INR 750/MT (USD 11) to INR 26,750-27,150/MT (USD 375-380) ex-mill, on 13th Feb'19 & manages to book around 25,000-30,000 MT, as per sources.

-- SteelMint's Pig iron export price assessment stood at USD 355-360/MT FoB India, USD 310-320/MT FoB Brazil & USD 325-335/MT FoB Black sea.

Finish Long

Finish Long Steel market have been increased amid positive sentiments from the beginning of week amid healthy trade volume in across regions.

However from the mid of week buying inquiries have slow down and booked materials by retailers is yet to be lifted in specified locations, SteelMint observed.

As per, weekly assessment commodity wise (TMT/Structure) price range increased by INR 500-1,000/MT and from mid week trade discounts have slightly increased to boost sales volumes.

-- Current trade reference rebar prices (12-25 mm) assessed at INR 38,500-38,800/MT Ex- Jalna & INR 37,400-37,600/MT Ex- Raipur; excluding GST.

-- Central region, Raipur based Heavy structure manufacturers have slightly decrease discount range to INR 400-600/MT and current trade reference prices at INR 43,300-43,600/MT (200 Angle) upon booking quantity.

-- Further few Eastern region (Durgapur) based medium mills offered wire rod (5.5 mm) for exports at around USD 540/MT, ex-work.

-- State owned - Vizag Steel (RINL) under the Ministry of Steel has increased prices of long steel products (rebar, wire rod & bloom) by INR 500/MT for Feb'19 deliveries. Also, JSW Steel has announced 2nd price hike for Feb'19 in rebar by about INR 1,000/MT in the starting of the week.

-- Following the significant rise, rebar prices by large players stood at close to about INR 40,500-41,000/MT ex-Chennai for the retail segment, 12 mm, ex-works & excluding GST.

-- JSPL- Oman business has recorded jump in crude steel output by 10% Y-o-Y in Q3 FY19 (Oct-Dec'18) as per recent press release. JSPL-Oman has produced about 0.46 MnT in Q3 FY19, which was about 0.42 in Q3 FY18 (Oct-Dec'17).

Finish Flat

This week Indian HRC & CRC prices in traders market continued to move upside after the price hike announcement by major Indian steel manufacturers in the beginning of Feb'19.

Market participants reported increase in HRC & CRC prices by around INR 1,000/MT in traders market this week.

Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 41,000-42,000/MT (ex-Mumbai) and INR 42,000/MT (ex-Delhi).The prices for CRC (IS513) 0.9 mm is hovering in the range of INR 46,500-47,000/MT (ex-Mumbai) and INR 47,300-48,000/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

Last week also traders reported surge in HRC & CRC prices by INR 500-1,000/MT in domestic market in anticipation of surge in prices by major steel mills.

-- SAIL's Rourkela Steel Plant (RSP)- new plate mill registered the best ever production for any single day on 10th Feb'19 and rolled out 4,774 MT of plates, as per company website.

Reference Prices as on 16 February 2019 (Week 7)

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

Indian Export Reference Prices as on 16th February'19

Prices in USD/MT
Source: SteelMint Research