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Weekly: Indian steel market snapshot

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Semi Finished

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18 Jul 2020, 16:48 IST

During the week-29, Indian domestic trade activities were subdued. The mid sized steel mills reported mixed response from the domestic buyers over uncertainty in the market.

As per SteelMint's assessment, in these days the prices of Semis products - Billet & Sponge fluctuated by INR 100-500/t. While, finished long steel products down by INR 100-500/t through the mid-sized mills. The flat steel prices remain firm through the traders end.

IRON ORE & PELLETS

Odisha iron ore offers increased this week, for fines at INR 2,000-2,100/t and lumps (5-18) at INR 4,000/t due to limited availability in ore and hike in pellet offers recently. Steel Authority of India (SAIL) had scheduled an auction from its Barsua iron ore mines on 16th Jul'20 & failed to fetch bids from participants.

SteelMint's bi-weekly domestic pellet index "PELLEX" rose by INR 250/t w-o-w to INR 6,300/t DAP Raipur on a recent deal.
Bellary based pellet makers kept the offers stable at INR 5,600-5,800/t EXW amid weak demand. However, pellet makers had concluded decent deals this week at the same range despite weak market sentiments. Durgapur indicative price remained this week at INR 5,900-6,000/t EXW.
SteelMint's pellet index (FoB east cost India) increased by $7/t w-o-w to $106/t on Wednesday as buying interest picked up. The previous assessment was done on 8 Jul at $99/t. An Odisha-based pellet maker pellet export deal for Fe 64% grade pellet with 3% Al to China at around $118/t CFR for July loading.

COAL

Indian buyers are still largely holding off on spot buying of imported coking coal, but mills are keeping an eye on falling coking coal prices, according to traders.

Indian spot demand will emerge in the fourth quarter on the back of restocking needs after the monsoon season ends in September.

Latest offers for the Premium HCC grade are assessed at around $107.00/t FOB Australia, $121.00/t CNF China and $119.80/t CNF India.
South India based sponge manufacturer booked around 55,000 t Indonesian coal of 4200 GAR Kutai energy at $33/t CIF Krishnapatnam port.

FERROUS SCRAP

Imported scrap offers to India continued to move up this week as well, as the global market strengthened since last week closing. More inquiries for HMS and lower grades were observed, with some bookings getting concluded in South and West regions.

SteelMint's assessment for containerized Shredded 211 from Europe and North America now stands at $290/t CFR Nhava Sheva, further up by $5/t in comparison to last week closing. Last bookings for Shredded scrap were concluded from USA and UK origin were concluded at $285/t CFR.
HMS 1&2 (80:20) offers from the UK were reported at $255-260/t CFR Nhava Sheva. HMS 1&2 (80:20) from West Africa was sold to Goa based mills at $247-248/t CFR Goa for 21t loading and offers for the same with 23t loading stood at $250/t CFR.
Brazil origin HMS (1&2) was sold to Chennai region mills in the range of $261-265/t CFR Chennai this week, with around 3,000 t material booked since Monday. In spite of the ongoing export ban, HMS 1&2 (ci gi 8%) offers from UAE were heard at around $270/t CFR Nhava Sheva

FERRO ALLOYS

Silico manganese prices remained stable, with a marginal downward shift of 1%. Meanwhile, the dispatches have improved in Raipur, the domestic demand remains moderate, however the export demand remains dull.
Ferro manganese prices in the domestic market remained unchanged w-o-w amidst dull demand and limited transactions. Meanwhile, the export prices fell by upto 4% w-o-w for HC 75% grade.
Indian ferro chrome prices remained stable and the market prices remained scattered depending on the level of inventory with the producers. The market prices range in between INR 61,000-62,000/t. Meanwhile, the export demand remains near to absent.
Ferro silicon prices remained unchanged W-o-W as the news of Meghalaya getting under lockdown spreads in the market. There might be some supply disruption from the state. The exports market remains absent.

SEMI FINISHED

On a weekly basis, Indian Semi finished (Billet) steel market observed volatility in prices on fluctuating demand by INR 100-500/t, similarly Sponge offers fluctuated by INR 100-300/t w-o-w.

Indian sponge C-DRI (80 FeM, 100% lumps) export offers increased by $5-10/t to $245-250/t CPT Benapole, equivalent to $268-270/t CFR Chittagong, Bangladesh.
The mid scale mills billet export offers a slight drop this week by $3/t to $385-388/t, while rod offes firm at $440-443/t, CPT Nepal, via road delivery.
Steel grade pig iron prices slightly drop this week in eastern India, however sharp surge of INR 1,100-1,500/t recorded in central India due to supply shortage & high cost outside material.
Gujarat based Mono Steel concluded billet export deals of around 5,000 t to two different destinations, out of which 3,000 t to Malaysia at $388/t CNF & 2,000 t to Africa at $415/t CNF, Size - 100 & 130.
SAIL has floated an auction for around 5,000 t prime steel grade pig iron to be held on 21 Jul'20 from its Bhilai Steel Plant, Chhattisgarh.
SAIL has scheduled an auction for around 2,400t of steel grade pig iron on 22 Jul'20 from its IISCO steel plant, Burnpur,
SAIL conducted an auction for 2,850 t off grade pig iron (1-rake loaded) on 15th July from its Bokaro Steel Plant, Jharkhand & the entire quantity got booked at INR 23,600/t EXW.
SAIL pig iron auction of 3,000t on 17th July from Rourkela Steel Plant (RSP) has received good response as the entire quantity booked in the range of INR 23,700-24,800/t ex-plant, as per participants.

FINISHED LONG

India's finish long steel market of secondary mills are still under pressure in terms of demand and the offers fluctuated by INR 100-500/t in most of the regions.

Trade reference rebar prices (12-25 mm) through midsized mills assessed at INR 30,200-30,500/t Ex-Raipur & INR 31,400-31,800/t Ex-Jalna.
Trade discount given by Raipur based heavy structure manufacturers is at INR 700-1,000/t and the trade price of 200 Angle is at INR 34,000-34,400/t EXW.
Trade discounts in Raipur wire rod are currently at around INR 1,000/t and trade reference prices stood at INR 30,200-30,700/t ex-Raipur and INR 30,800-31,000/t, ex-Durgapur, size 5.5 mm.

FINISHED FLAT

Domestic HRC prices have remained stable this week due to fewer trades, on the re-imposition of limited lockdown and expansion of containment zones in some cities to control the spiraling coronavirus cases.

HRC (IS 2062, 2.5 - 8 mm) prices were at INR 35,500-36,500/t ex- Mumbai, INR 36,000-36,500/t ex-Delhi, and INR 37,500-38,000/t ex-Chennai.
CRC (0.9 mm IS513 GR) prices were assessed at INR 41,000-42,000/t ex- Mumbai, INR 41,500-43,000/t ex- Chennai & INR 40,200- 42,000/t ex-Delhi. The prices mentioned above do not include GST at 18% rate.

Demand is better now. The price hike earlier this month by large mills is gradually finding acceptance among traders. Meanwhile Indian mills are planning to increase prices by around INR 500-1,000/t for Aug'20 deliveries on higher global prices.

Reference Prices as on 18th July 2020 (Week 29)