Weekly : Indian Steel Market Snapshot

Indian semi finished steel prices remained volatile throughout the week amid average inquiries from the domestic buyers. However, demand in exports remained moderate.

In context to supply, the manufacturers are maintaining output as per demand, hence there are no major stock among medium & large scale mills with sufficient orders in hand.

As per assessment made by SteelMint, during the week prices of Semis & Finished long steel products through the mid scale mills have fluctuated by INR 100-900/MT (upto USD 12). Meanwhile, the domestic Flat steel prices more or less firm on a week basis.

IRON ORE and PELLETS

Odisha's state-owned miner- Odisha Mining Corporation (OMC) had scheduled its iron ore lump e-auction on 24th Jan'20. 390,000 MT got booked at close to base price & remaining 130,000 MT fetched premium of around INR 290/MT above set base price.

-- PELLEX (63.5% Fe) down by INR 350/MT to INR 7,150/wmt (DAP Raipur). No pellet deals heard from Raipur pellet makers in this publishing window. However, a pellet deal has been concluded by Raipur based sponge manufacturer from outside Raipur based pellet maker at INR 7,100/MT (DAP Raipur). The quantity of deal could not be confirmed at the time of publishing the report.

-- A pellet maker from Odisha concluded pellet export deal for 55,000 MT (Fe 64%, with 3% Al) at around USD 126-127/MT, CFR China for Feb end shipment.

COAL

Seaborne premium low-volatile (PLV) hard coking coal (HCC) prices inched marginally higher on an FOB Australia basis with the conclusion of a sell tender early this week. However, traders expect that a sluggish market may follow as Chinese buyers retreat for the Spring Festival. Prices should remain mostly flat until the Chinese market participants return from their week-long holidays.

Chinese steel markets and coke plants are seeing positive margins at the moment, but it's hard to gauge the market direction after the Lunar New Year celebrations.

-- Latest offers for the Premium HCC grade are assessed at around USD 153.00/MT FOB Australia, USD 163.50/MT CNF China and USD 165.50/MT CNF India.

FERROUS SCRAP

Following the Turkish price trend, imported scrap prices to India have also moved down this week. Market participants mentioned improvement in trades at reduced prices against last week.

-- SteelMint's assessment for containerized Shredded 211 price from UK to India stands at USD 300/MT CFR, down by USD 8-10/MT W-o-W. Few offers were also heard at a low level of around USD 295/MT CFR.

-- Offers for HMS scrap too reported downward by USD 5 /MT against last week's report. HMS 1 (no ci gi) super from UAE stands at USD 295/MT CFR Nhava Sheva, while HMS 1&2 stands in the range of USD 285-290 /MT CFR from the same origin. HMS 1 from South Africa is reported at around USD 300/MT CFR. Offers from the UK for HMS 1&2 (80:20) also devalued and stood in the range of USD 285-290/MT CFR.

SEMI FINISHED

Indian Semi finished steel market observed volatility in prices on fluctuating demand and this week billet offers surged by INR 100-400/MT (USD 1-6) in Central & Eastern regions. However, downfall seen in Southern India (Chennai) by INR 900/MT.

Following the trend, local Sponge iron market also marked mix price trend, where prices volatile by INR 100-300/MT, W-o-W.

-- Indian sponge iron export offers to Bangladesh plunged by USD 10/MT and latest offers reported at USD 300/MT CPT Benapole, equivalent to USD 315-320/MT CFR Chittagong, Bangladesh.

-- Nepal based steel mills have booked 80 FeM Sponge C-DRI (70:30 mix material) iron from eastern India at around USD 280-284/MT (loaded to rake). This attracts freight cost of about USD 25/MT CPT Nepal, Raxaul border.

-- Indian mid scale mills export offers (via road delivery) to Nepal stands at USD 450/MT for Billet & USD 505/MT for Wire rod, CPT Nepal.

-- Rashtriya Ispat Nigam Limited has invited a tender for the export of 10,000 MT Bloom and 10,000 MT Billets. Interested bidders can submit their bids till 14:00 hrs on 28 Jan'20.

-- Jindal Steel has reduced steel grade pig iron price to INR 28,800-29,000/MTex-plant, Raigarh, Central India.

FINISH LONG

Finish Long steel market observed moderate response in terms of trade volume where the price range fluctuated by INR 100-700/MT across region but market sentiments seems to be improved from the last couple of days and demand vary as per region wise where the north and central region seems stable or marginal up due to strengthening raw material.

However, western & southern region seems slightly downward amid uncertain direction and trade participants are in a wait and watch mode to get appropriate demand from trade associates.

-- Current trade reference rebar prices (12-25 mm) through midsized mills assessed at INR 33,500-33,700/MT ex Raipur & INR 36,000-36,300/MT ex-Jalna.

-- Central region, Raipur based heavy structure manufacturers have maintained trade discount by INR 1,100-1,500/MT and Current trade reference prices at INR 37,400-37,700/MT (200 Angle) ex-work.

FINISH FLAT

This week domestic HRC and CRC prices remained firm owing to active trade inquiries happening in the domestic market. Meanwhile, easing supplies also kept the domestic prices largely supported.

Current trade reference prices for HRC stands at INR 39,750-40,000/MT ex-Mumbai, INR 39,000-39,500/MT ex-Delhi and INR 40,000-40,500/MT ex-Chennai. And the trade reference CRC (0.9 mm, IS 513) prices on a weekly premise assessed at INR 45,000-45,500/MT ex-Mumbai, INR 42,500-44,500/MT ex-Delhi, and INR 45,500-46,000/MT ex-Chennai. Prices mentioned above are basic, and extra GST@ 18% will be applicable.

Also, Indian steel mills are planning to raise HRC and CRC prices by around INR 1000-1500/MT on the back of increased raw material cost along with active buying in the domestic market.

-- An eastern India based major private steel manufacturer, booked three rakes of HRC (IS 10748, 1.6 mm and above) at USD 520-525/MT ex-plant basis, which is equivalent to USD 540-545/MT CFR Raxual border.

Reference Prices as on 25th January 2020 (Week 4)

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

Indian Export Reference Prices as on 25th Jan'20

Prices in USD/MT
Source: SteelMint Research