Indian Steel Market Weekly Snapshot

Indian domestic steel trade activities were subdued during the week-18 (27th Apr to 04th May) as prices remained volatile amid average supply-movement.

Participants reported limited inquiries in finished products, which in turn resulted in price fluctuation in both Semis & finished long steel products by INR 200-500/MT (USD 3-7) through the mid sized mills.

In line large mills, as per sources - Vizag Steel has reduced rebar prices by up to INR 500/MT (USD 7), meanwhile SAIL & JSW Steel are learned to have rolled-over prices for May'19 deliveries.

In context to Flat steel, the major mills have keep prices unchanged for May'19. However as per sources, discounts have released through the mills to attract buyers.

IRON ORE & PELLET

SteelMint has learned from the market sources that, Odisha based major merchant iron ore miners are holding same offers this week amid decent bookings. Odisha Mining Corporation (OMC) - a state-owned miner is to conduct next e-auction for iron ore fines on 07th May'19 and miner has kept base prices unchanged.

India pellet market remains weak amid low demand this week. In Durgapur (eastern India) reference pellet price assessment stands stable at INR 5,800-5,900/MT (delivered) in line with last week assessment. Raipur (Central India) based pellet manufacturers have reduced offers to INR 6,300/MT ex-plant, for Fe 63% grade. The prices are excluding GST.

-- Central India based pellet maker - Shri Bajrang Power and Ispat Ltd has concluded two pellet export deals this week. As per the company officials deal was concluded at around USD 117/MT, CFR China.

COAL

Seaborne premium hard coking coal prices have picked up since last week in concurrence with an upsurge in the Chinese domestic metallurgical coke market, while the 64 mid-vol prices were largely stable over the previous week.

In China, fresh deals were seen taking place for restocking purposes by end-users although most of the Chinese buyers were heard remaining on the sidelines. Trading sources suggested that there is no urgent requirement from any major China-based steelmaker for Australian coking coal.

Further, the Chinese steelmakers have been staying cautious against imports of excess raw materials, as domestic prices continue to weaken.

-- Latest offers from the Australia for Premium HCC grade are assessed at around USD 218.50/MT & for the 64 Mid Vol HCC grade USD 194.40/MT, CNF India.

SCRAP

Indian imported scrap market has continued observing comparatively limited activities in containers on ongoing elections in the country. Most of the buyers are in 'wait and watch' mode to see the final outcome of elections after which improvement in activities is expected.

-- A bulk cargo booking was learned to be under negotiation by Indian mills from US recycler comprising 30,000-32,000 MT mixed scrap however the bids are around USD 15/MT lower than the current offers and the deal hasn't been confirmed till the time of publication of this report.

-- SteelMint's assessment for containerized Shredded from Europe, UK and US stand at USD 330-335/MT, CFR Nhava Sheva. Few offers towards the closing of the week showed further softening below to USD 330/MT, CFR amid an expected correction in global scrap prices.

-- Offers for South African HMS 1&2 and Dubai HMS 1 remained almost stable in the range USD 330-333/MT, CFR depending on quality. SteelMint's assessment of West African HMS 1&2 in 20-21 MT containers stands at USD 310-315/MT, CFR India.

SEMI FINISHED

Indian Semi finished steel market registered volatility in prices this week, as Billet prices moved up by INR 200-500/MT in across major markets except in South India - Chennai where prices fell by INR 300/MT.

Similarly in Sponge iron, in which prices in Central region rally by INR 100-300/MT, meanwhile it was more or less firm in Eastern India. However in Southern region, prices down by INR 100-200/MT on improved supply of raw materials i.e. Iron ore & pellet.

-- Sponge iron export offers being fall from eastern India by USD 5/MT (W-o-W) and currently stood at USD 305-310/MT CPT Benapole, equivalent to USD 325/MT CNF Chittagong, Bangladesh.

-- In line export offers of Billet through the mid sized mills, it moved up by USD 5-10/MT at the end of week following surge in domestic prices and export offers for 100*100mm evaluated at USD 450-455/MT ex-mill, Durgapur.

-- Tata Metaliks has released pig iron prices this week for May'19 deliveries, in which the company has rolled-over Foundry grade pig iron prices at INR 32,500/MT ex-plant, Kharagpur, Eastern India.

-- During the week, Jindal Steel has offered steel grade pig iron at INR 28,200/MT ex-Raigarh & Panther shots(granulated pig iron) at INR 26,700-26,800/MT ex-plant, Angul, Odisha.

-- As per sources, Neelachal Ispat (NINL) has received decent bookings of close to 20,000-25,000 MT pig iron at increased price by INR 750/MT to INR 27,000-27,400/MT ex-Cuttack, Odisha.

-- SAIL has conducted a auction for 7,850 MT steel grade pig iron on 2nd May'19. The company has received better response in this auction as near to 5,000 MT (64%) material has been booked at the base price of INR 27,450-27,500/MT ex-plant, Rourkela.

-- RINL (Vizag Steel) - state-owned steel maker under the Ministry of Steel, has invited a tender for export of 10,836 MT Billets and 2,709 MT Bloom to Nepal. The bid due date for the tender is 13th May '19 & delivery scheduled by 15 Jun'19.

-- SAIL - a government of India company, has floated export tender for 16,200 MT non concast billet(150*150mm). The cargo will be shipped from Vizag port. The length of the billets is 12 metres and shipping is scheduled within 30 Jun'19. Due date for bid submission is 08th May'19.

FINISH LONG STEEL

Indian Finish long steel prices slightly fluctuated by INR 200-400/MT in most of the regions due to lack of buying interest and limited future bookings through the traders & retailers end.

Meanwhile it is being learned that, industrialists have provided sufficient discounts but trade volume remain inappropriate, as per assessment. However the prices in central and north-east regions slightly uptick on weekly basis and in remaining regions if fell by INR 200-300/MT.

-- Current trade reference rebar prices (12-25 mm) assessed at INR 35,600-35,900/MT Ex-Raipur & INR 36,700-36,900/MT Ex-Jalna; prices are basic & excluding GST.

-- Further as per assessment, the large mills rebar price range have narrowed down by INR 500/MT & current Rebar (12 mm) trade reference price registered at around INR 41,000-41,500/MT Ex-Mumbai & INR 40,800-41,000/MT Ex-Ahmadabad; excluding GST in stock yard.

-- Central region, Raipur based heavy structure manufacturers have slightly raised trade discount by INR 100-200/MT to INR 500-600/MT as against last week and current trade reference price is at INR 39,600-39,900/MT (200 Angle) ex-work.

-- Trade discounts in Raipur Wire rod remained healthy and assessed at INR 900-1,100/MT which is more or less firm on weekly basis. Meanwhile basic prices stood at INR 38,300/MT ex-Raipur & INR 37,200-38,000/MT ex-Durgapur.

FLAT STEEL

Major Indian steel manufacturers have rolled over HRC & CRC prices for May'19 deliveries amid ongoing election scenario along with sluggish trades prevailing in domestic market. Meanwhile cheaper imports of HRC from Japan, Korea and Iran have put domestic HRC prices under pressure.

Effective price of HRC (2.5-8mm, IS2062) is hovering at INR 42,000/MT (ex-Mumbai). Prices mentioned above are basic and extra GST@ 18% will be applicable.Whereas, prices of CRC (0.9mm, IS513GR) is around INR 47,000/MT (ex-Mumbai). Prices mentioned above are basic and extra GST@ 18% will be applicable.

However SteelMint learned that mills are giving discounts of around INR 1,000/MT against last month.

As per SteelMint assessment trade reference prices of HRC in major markets like Mumbai and Delhi have come down to 1-month low.

-- Currently HRC (2.5-8mm,IS2062) in traders market is around INR 41,750/MT ex-Mumbai & INR 41,500/MT ex-Delhi. Meanwhile CRC (0.9mm,IS 513) price range in traders market is hovering at INR 46,500-47,000/MT ex-Mumbai & INR 45,250-47,000/MT ex-Delhi. Prices mentioned above are basic and excluding GST@ 18%.

Reference Prices as on 04th May 2019 (Week 18)

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

Indian Export Reference Prices as on 04th May'19

Prices in USD/MT
Source: SteelMint Research