Indian Steel Market Weekly Snapshot

Indian spot steel trades slightly improved during the week-42 (12-19th Oct'19). Further the mid sized plants have reported, lessened inventories in long products owing to surge in trade volumes.

As per SteelMint's assessment, this week prices surged by about INR 100-400/MT in sponge iron, INR 100-800/MT in billet & INR 200-1,000/MT (USD 3-14) in rebars.

However, during the week, Flat steel prices moved down by INR 200-500/MT due to limited bookings, as reported by trade participants.

IRON ORE & PELLETS

Odisha Mining Corporation has scheduled its next iron ore fines e-auction on 21st Oct'19 and decreased base prices by INR 100/MT against the last auction base price. Odisha govt. on 14th Oct 2019 invited bids for the grant of ten more iron and manganese ore mining leases via Phase II.

PELLEX stable at INR 5,900/wmt (DAP Raipur) in recent transactions reported. Raipur based pellet offers stable at INR 5,800/MT ex-plant. Southern India (Bellary) based pellet makers decreased pellet prices by INR 100-200/MT to INR 6,200-6,350/MT ex-plant.

- Gujarat based DRI plants actively book pellets from Raipur at a landed cost of INR 7,800-7,900/t (delivered Kandla). Gujarat based DRI plants need about 200,000 MT lumps/pellets per month. Imports of lumps remain expensive. Jindal Saw (who is the major supplier of pellets in Gujarat ) is booked for exports.

COAL

Australian premium low-volatile hard coking coal prices have held mostly steady throughout the week, following the upward movements last week as Chinese buyers returned from their week-long National Day holidays.

In China, bearish market sentiments were observed after a series of trades took place earlier this week. Nevertheless, ex-China coal markets saw relatively quiet trading activity compared with the past few trading days, leaving prices largely unchanged.

Indian demand for spot shipments of seaborne coking coal has been dampened by the prevailing bearishness in the domestic steel sector, owing to slowdowns in automobile, manufacturing and property construction.

-- Latest offers for the Premium HCC grade are assessed at around USD 152.25/MT FOB Australia and USD 167.60/MT CNF India.

FERRO ALLOY

Silico Manganese - Prices in Raipur are experiencing a free fall. Producers are with enough inventory and are keen to reduce their inventory levels. Meanwhile, in Durgapur the production cuts are severe and the producers are comparatively firm on their prices.

Ferro Manganese - Prices of Ferro Manganese are low in line with tepid demand and the market is very competitive with the producers offering at much lower rates.

Ferro Chrome - Indian Ferro Chrome prices remained constant. A few producers increased the quoting price but weren't able to conclude deals due to little demand.

Ferro Silicon - Ferro Silicon prices have been stable and producers are now getting inquiries. It is expected that the prices may increase sooner.

FERROUS SCRAP

Following the hike in Turkish import prices earlier this week, offers of imported scrap to India gain slightly, however fresh offers were still awaited with further clarity on price levels expected by early next week. Global suppliers offered less material this week as scrap availability in the yards have turned tight, while continued slow finished steel sales are expected to prevent any aggressive procurement.

Assessment for containerized Shredded from the UK, Europe and the USA to India is currently at USD 261-265/MT, CFR Nhava Sheva, with few shredded bookings earlier in the week, heard at around USD 261-263/MT CFR, while post the global upsurge, the market expects fresh offers to be around USD 265-270/MT, CFR Nhava Sheva levels.

HMS 1 (super) from Dubai was reportedly sold at around USD 262-263/MT CFR, while HMS 1&2 (with ci & gi) from Dubai was being offered at around USD 256/MT CFR. South African origin HMS 1 was traded at around USD 260/MT CFR with improvement in trades as against last week, while European origin HMS 1&2 (80:20) offers now stand at USD 248-250/MT CFR Nhava Sheva.

SEMI FINISHED

Indian Billet prices surged on account of better demand and with rise in finished steel prices. As per assesment, the prices increased majorly in Mumbai & Raipur by INR 800/MT & INR 600/MT, respectively, W-o-W.

In line sponge iron prices surge majorly in Bellary by INR 400/MT followed by INR 300/MT in Durgapur on a weekly basis.

Coming to pig iron market, the prices remained marginally fluctuated by INR 100-200/MT in central & eastern regions.

-- Vizag Steel, a state-owned steel maker under the Ministry of Steel, has cancelled Billet, Bloom & Wire rod export tender to Nepal due to low bids.

-- Vizag Steel had invited Ocean export tender of 15,000 MT Wire Rod and 20,000 MT Billets on 18th Oct'19. As per sources report, the company has concluded the bloom export tender for size 150*150mm of quantity 40,000 MT (2 lots each of 20,000 MT) at around USD 370-372/MT, FoB India.

-- TATA Steel's pig iron auction of 3,000 MT from its Bhushan Steel Plant fetched bids higher by INR 350/MT. The company has set a base price of INR 22,400/MT (USD 317), howevr the entire lot was sold at INR 22,750/MT (USD 322) ex-works, Angul (Odisha).

-- Indian mid sized mills export offers to Nepal reported at USD 385/MT for Billet & USD 445/MT for Wire rod, CPT Raxaul border. In line large mills export offers to Nepal is hovering at USD 400/MT for Billet & USD 455/MT for Wire rod CPT Raxaul border, Nepal.

-- Jindal Steel is offering steel grade pig iron at INR 23,800/MT ex-Raigarh & granulated pig iron (panther shots) at INR 22,000/MT ex-plant, Odisha.

-- Bangladesh has resumed sponge iron purchase from India and near to 5,000 MT deals reported at a price range of USD 258-260/MT CPT Benapole, equivalent to USD 275/MT CFR Chittagong, Bangladesh.

FINISH LONG

Indian Finish long steel market have observed improved trade volumes in most of the regions through the secondary mills and rebar prices moved up by INR 200-1,000/MT (USD 3-14).

Further, market participants shared that current price range could get sustain for near term as producers don't have much selling pressure due to considerable future bookings as traders booked sufficient quantity looking at upward market direction.

-- Current trade reference rebar prices (12-25mm) through the secondary/mid sized mills assessed at INR 30,100-30,400/MT Ex-Raipur (central region) & INR 30,900-31,200/MT Ex-Jalna (western region).

-- Mumbai (Wada) based re-rollers have slightly increased their rebar guage parity by INR 300/MT for 10 & 12 mm w.e.f.19 Oct'19 and total difference would be registered at INR 3,500/MT which was earlier INR 3,200/MT against base price.

--Central region, Raipur based structure manufacturers surged the prices by INR 500-800/MT in light and heavy sizes. Meanwhile trade discount have maintained on heavy structure by INR 600-900/MT and current trade reference prices at INR 34,300-34,600/MT (200 Angle) ex-work.

--Trade discounts in Raipur wire rod is currently at INR 900-1,100/MT and trade reference prices stood at INR 30,400-30,800/MT ex-Raipur and INR 30,000-30,200/MT ex-Durgapur, size 5.5mm.

FINISH FLAT STEEL

Limited trade activities and delayed purchases by few end users have drifted down Indian HRC prices by INR 200-500/MT against last week in few markets.

As per SteelMint's price assessment current trade reference prices in traders segment for HRC (IS2062,2.5-8mm) is at INR 34,000-34,750/MT ex-Mumbai, INR 34,000-34,500/MT ex-Delhi & INR 35,000-36,000/MT ex-Chennai.

Meanwhile domestic CRC (0.9mm, IS 513) trade reference prices on a weekly basis are hovering around INR 39,200-39,500/MT ex-Mumbai, INR 38,500-40,000/MT ex-Delhi & INR 38,000-40,000/MT ex-Chennai. All prices mentioned above are basic and extra GST@ 18% will be applicable.

Market participants are hopeful of upcoming Diwali festive season to boost demand and less chances of further decline in prices in near term. Further festive holidays will keep domestic HRC prices largely supported.

Reference Prices as on 19th October 2019 (Week 42)

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

Indian Export Reference Prices as on 19th Oct'19

Prices in USD/MT
Source: SteelMint Research