SteelMint | Morning Brief

Iron ore & pellets -

• SteelMint's bi-weekly domestic pellet index "PELLEX " remained stable at INR 14,550/t DAP Raipur as seen in a recent deal. A single deal of 10,000 t pellet was reported in this publishing window at INR 14,650/t DAP, Raipur. Iron ore dispatches from NMDC Chhattisgarh are reportedly getting hampered due to the prevailing COVID cases followed by lock down. As per the SteelMint data, iron ore rake movement from NMDC to CG based units has decreased by around 29% to 10 rakes last week against 14 rakes a week before.
  
  
• Buying inquiries for imported South African lumps to India have continued to remain low as global prices have been rising. The current assessment for imported lumps stands at around $230/t, CNF Kandla for Fe 64%.
  
  
• Western India-based - Jindal SAW Ltd increased its pellet offer by INR 500/t w-o-w. The current offer for Fe 63% grade pellets stands at INR 15,700/t DAP Kandla. The offers have increased from its last offer of INR 15,200/t, SteelMint learned from sources.
  
  

Coal -

• South African RB2 (5500 NAR) grade coal prices fell to INR 6,350/t ex-Gangavaram today due to reduced bids from sponge manufacturers. With rising restrictions across various states, demand for RB2 coal has reduced and capacity utilisation levels have also dropped.
  
  

Scrap & metallics -

• SteelMint's benchmark sponge iron (P-DRI) price dropped further by INR 300/t to INR 28,500/t ($382), exw Raipur, Central India. Demand remained weak due to slowdown in furnace production, while sponge iron supply remained healthy. This resulted in a mismatch between supply and demand, leading to a constant drop in sponge prices.
  
  
• SteelMint's domestic steel scrap index moved down to INR 37,200/t DAP Mandi Gobindgarh. Trade participants turned cautious amidst lockdown measures effective from today onwards. This resulted in a lack of buying inquiries, leading to nominal changes.
  
  
• In Vizag Steel's pooled iron auction held on 26 Apr '21, the entire material of 1,200 t was booked at INR 35,600/t ex-works, which is INR 900/t lower than its previous auction.
  
  
• Pakistan has witnessed further increase in imported scrap offers this week with UK/European scrap suppliers targeting a further hike in new round of deals. Fresh offers for shredded are now hovering around $470-475/t CFR Qasim levels, up by $10-15 w-o-w. Yards are however targeting at $475/t CFR levels.
  
  
• A prominent Bangladesh-based steel mill has booked two deep-sea bulk scrap cargoes recently after a gap of over two weeks, sources have confirmed to SteelMint. The cargo of 32,000 t comprised of mix of HMS & Shredded.
  
  

Semi-finished steel -

• SteelMint's daily billet index was assessed at INR 40,600/t (-400) exw Raipur on 27th Apr '21 at 18:00 IST. The index has been falling continuously on the back of limited demand as rolling mills are holding their purchases of raw materials due to poor off take & decline in productions.
  
  
• Esfahan Steel Company (ESCO), one of Iran's leading steel exporters, has sold 30,000 t billets to China through a tender. According to Steelmint sources, the mill managed to achieve a price level of $590/t, FoB. The shipment is likely to be scheduled for Jun '21.
  
  
• Chinese Graphite electrodes prices that had faced a downtrend last year due to COVID-induced lowered demand, are once again gaining traction this year. In last four months, while the domestic UHP grade GE prices have moved up by 25%, HP grade is up by nearly 32%.
  
  

Finished steel -

• SteelMint's Indian HRC (SAE 1006) export index currently stands at $950/t FoB East-coast basis, up by $14/t w-o-w against $936/t FoB. Mills continue to raise HRC offers on higher price realizations and global bullish sentiments.
  
  
• An Indian mill has reportedly booked around 25,000 t of re-bar to Hong Kong for June shipment at around $685/t CFR levels, equivalent to $645-650/t FoB, SteelMint learned from market participants.
  
  
• Two major Japanese steel mills were heard to have collectively booked 50,000 t HRC for export to Pakistan. The deal was concluded at a $1,010-1,015/t CFR basis for June delivery, SteelMint learned from Pakistan-based sources.
  
  
• Alloy steel producers across India, such as JSW Steel, Mukand Ltd, Kalyani Steel, Sunflag, Vardhaman, etc are bracing for a price increase by almost INR 6,000-INR 8,000 per tonne for Original Equipment Manufacturers (OEMs) and component makers in the auto sector under their long-term contracts. Negotiations are still under way, SteelMint has learnt from reliable sources.
  
  
• South Korea's Hyundai Steel's crude steel production stood at 4.5 mn t in Q1 CY '21 as against 4.75 mn t in Q4 '20. Steel product sales totaled 4.9 mn t in Q1 CY '21 as against 5.08 mn t in Q4 '20. Production and sales volume decreased due to streamlining of businesses and also due to it being an off-season.