Indian Steel Prices Rally, 12 Aug'19

Indian steel prices rallied today following rumours in the market saying that Indian government has imposed safeguard duty on temporary basis by 20-25% on imported flat steel. However no official confirmation or official circular was received till the time of publication this report.

Further the another news was power cut in Punjipatra, Raigarh - Central India, was confirmed by market sources that about 50%(12 hrs) power cut by Jindal Power Ltd (JPL) since today. Hence the furnaces production in Raigarh seem to be affected, which may result in short supply of ingot/billet in central as well North-east regions.

In general, the furnaces in Raigarh produce close to 3,000 MT ingot/billet on day basis, meanwhile with the dropped margins the producers had already curtailed production by about 50% since mid July'19.

Coming to price movement on day basis, as per SteelMint's assessment, the billet prices surged by INR 200-1,100/MT (USD 3-15) with major rise of INR 700-1,100/MT in North-east regions.

Further the rebar & sponge iron prices surged upto INR 500/MT (USD 7) in across major Indian markets.

SteelMint's latest price assessment for induction furnaces billet in Indian market stood at INR 24,700-28,800/MT (USD 346-405) ex-plant.

Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 16,200-17,000/MT (USD 227-238); prices are ex-plant & excluding GST.

Rupee & ICEX

-- On 12th August 2019 (Monday) INR to USD exchange rate stood at INR 71.26.

-- ICEX (Indian Commodity Exchange Ltd) Sep'19 contract for STEELLONG today open at INR 26,200/MT & last traded (IST 19:20 hrs) at INR 27,350/MT.

Raw Materials

-- JSW Steel's iron ore purchases from Karnataka e-auctions decreased 8% to 1.50 MnT in July'19 compared to 1.63 MnT in June'19

Semi Finished

-- Induction furnaces based in Jindal's industrial park in Punjipatra, Raigarh (Central India) has reported 12 hrs (50%) power cut by Jindal power ltd (JPL) since yesterday.

-- Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 16,100-16,200/MT ex-plant.

-- Raipur based major sponge producers sold out more than 10,000 MT P-DRI with raised offers by INR 200/MT to INR 15,600-15,700/MT ex-plant.

-- Raigarh based Singhal Steel offered billet at INR 25,900-26,000/MT FoR Raipur, officials reported.

-- BMM Ispat a price trend setter in South Indian sponge market has kept offers unaltered today and offered FeM 80 P-DRI lumps at INR 15,700-15,800/MT ex-Bellary, Karnataka.

-- BIOP Steels in South India has offering FeM 80 & 82 C-DRI lumps at INR 16,300/MT & INR 16,700/MT ex-plant, Karnataka; an official reported.

Wire Rod

Trade discounts in Raipur wire rod reduced by INR 500/MT to around INR 1,000/MT and base price stood at INR 30,600/MT ex-Raipur & INR 29,800-30,500/MT ex-Durgapur.

Rebar (12 mm)

-- Raipur based Real Ispat (GK TMT) has unchanged their offers at INR 31,400/MT.

-- Raigarh based Anjani Steels Ltd. (Radhe TMT) is offering at INR 28,900/MT (up by INR 100/MT).

-- Gujarat based Shreeyam Power & Steel Industries Ltd. (National TMT) is currently offering at INR 32,500/MT FoR.

-- Jalna based Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) has unchanged their offers at INR 30,700/MT.

-- Chennai based Sakthi Ferro Alloys India Pvt. Ltd. (SSI TMT) is current offering at INR 33,500/MT.

Note - Prices mentioned above are ex-work, excluding GST & changes are placed on day basis. Prices are subject to reconfirmation.