Weekly: Indian steel market snapshot

Indian semi-finished & finished long steel market was strong & prices increased by INR 50-900/t in the week 36.

Whereas finished flat market showed improvement as Indian steel mills lifted HRC prices by INR 2,000/t for Sept deliveries. Prices have moved up on the back of supply concerns and hike in global steel prices.

Iron Ore & Pellets

• NMDC raised iron ore prices from Chhattisgarh mines by INR 290-340/t for Sept'20.
  
  
• SAIL conducted an e-auction today for 28,000 t iron ore fines (Fe 62%) from its Dalli mines, Chhattisgarh. The company had set the base price for the auction at INR 3,100/t (loaded to the wagon, including royalty). The auction received a good response with the entire quantity getting booked at INR 3,900/t (loaded to the wagon, including royalty of INR 650), SteelMint learned from its sources.
  
  
• Orissa Mining Corporation's auctions of 492,000 t iron ore held on 3rd Sep'20, as reported by SteelMint, received a surprisingly high premium of INR 800-2,050/t over the base price.
  
  
• SteelMint domestic pellet index "PELLEX" increased by INR 600/t on Friday (04 Sept'20) to INR 8,700/t DAP, Raipur in recent trades and hike in offers.
  
  

Coal

Major Asia-Pacific markets outside China continued observing limited spot demand from end-users, despite a considerable recovery in steel production.

• Latest offers for the Premium HCC grade are assessed at around $111.00/t FOB Australia, $119.00/t CNF China and $124.50/t CNF India.
  
  

Ferrous Scrap

• Indian imported scrap prices have rallied further on a weekly basis, following Turkish price trend. Imported scrap prices in India have hit over one-year high. SteelMint's assessment for Shredded scrap in containers stand at $325/t CFR Nhava Sheva, however, few offers were reported at $330/t CFR levels as well.
  
  
• In the latest deal, 4,500 t of MS shredded from different origins (UK, US & Australia) has been booked in containers at around $320/t CFR Nhava Sheva early this week, 3,250 t of MS turning at around $288/t CFR, while 3,500 t of busheling bundles at around $340/t CFR basis.
  
  
• Dubai origin HMS 1 and South African HMS (90:10) is being offered at around $310/t CFR, whereas, Dubai origin HMS (80:20) is being quoted in the range of $295-300/t CFR.
  
  

Ferro Alloys

• Indian silico manganese prices fell amid weaker realization from exports and Indian currency appreciation. Meanwhile, by mid of the week, prices in Raipur spiked up after MOIL released their prices for Sep' 20 which was higher by 10% m-o-m. However, the increased prices are yet to find acceptance.
  
  
• Ferro Manganese prices remained stable amidst moderate demand. Production remained on the lower side.
  
  
• Ferro Chrome prices escalated amid severe chrome ore shortage. Ferro chrome prices are at around INR 73,000/t exw Odisha. This is expected to further rise amid intensifying supply crunch.
  
  
• Bhutanese producers have kept offer levels firm at INR 82,000/t exw Bhutan and the prices from Guwahati came down to INR 84,000/t. However, prices from Guwahati is expected to fall further amidst weak demand.
  
  

Semi Finished

On a weekly basis, Indian Semis market showed improvement, in which domestic Sponge iron & billet offers surge by INR 300-900/t.

• Induction grade billet export offers surged by $10/t to around $410/t exw Durgapur, equivalent to $435-440/t CPT Nepal, via road delivery.
  
  
• Indian sponge iron (80 FeM, 100% lumps) export offers unchanged this week with fresh deals of around 2,000 t at near to $305/t CPT Benapole, equivalent to $325/t CFR Chittagong, Bangladesh.
  
  
• Pig iron demand was average this week, however prices increased by INR 100-500/t, w-o-w, on account of rise in billet prices.
  
  
• Tata Metaliks has released its pig iron prices for Sep'20. The base grade offers (Si 1-1.5%) are reported at INR 30,600/t ($418) while for foundry grade offers at INR 32,500/t ($444/t) exw Kharagpur.
  
  
• SAIL conducted an auction for around 4,000 t prime steel grade pig iron on 4th Sep from its Bhilai Steel Plant, Chhattisgarh. Entire material put in the auction was booked at INR 27,750-27,900/t exw.
  
  
• SAIL has floated an auction for around 2,800 t off grade pig iron on 9 Sep'20 from its Bokaro Steel Plant, Jharkhand.
  
  

Finished Long

India's finish long steel prices in most of the locations move up by INR 100-700/t w-o-w basic through medium and small scale mills.

In this week primary mills announced the prices for Sep'20 deliveries in which their offers surged upto INR 1200/t, and the current trade reference price is hovering at INR 39,300/t exw Chennai & INR 39,000/t exw Mumbai (size 12 mm) prices may differ upon the procurement quantity and payment terms.

• Indian mid scale mils of wire rod concluded about 2 rakes (equivalent to 5,200 t) of export deals to Nepal at around $465-470/t CPT Raxaul/Jogbani border. While, offers by Durgapur based mills (via road delivery) hovering $450-455/t exw Durgapur, equivalent to $480/t CPT Nepal.
  
  
• Trade reference rebar prices (12-25 mm) through midsized mills assessed at INR 32,200-32,500/t exw Raipur, INR 34,100-34,500/t exw 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 36,400-36,800/t exw.
  
  
• Trade discounts in Raipur wire rod are currently at INR 1,300-1,500/t and trade reference prices stood at INR 32,800-33,200/t exw Raipur and INR 33,200-33,500/t, exw Durgapur, size 5.5 mm.
  
  
• APL Apollo Tubes Ltd, has increased pipe prices by INR 1,250/t to INR 44,000/t (USD 595); exw in central India, Chhattisgarh for Sep '20.
  
  

Finished Flat

Indian steel manufacturers have increased HRC prices by INR 2,000/t ($27) for Sept'20 deliveries. Prices have moved up on the back of supply concerns and hike in global steel prices.

• HRC (IS 2062, 2.5-8 mm) prices stand at INR 41,000-42,000/t exw Mumbai, INR 41,000-42,000/t exw Delhi while INR 41,500-42,250/t exw Chennai.
  
  
• CRC (0.9 mm IS513 GR) prices are assessed at INR 46,000-47,000/t exw Mumbai, INR 47,500-48,500/t exw Delhi and INR 46,500-47,000/t exw Chennai.
  
  

The prices mentioned above do not include 18% GST.

Thus higher iron ore prices and appreciation of INR against $ will lead to higher HRC prices in the domestic market. Meanwhile, Tata Steel BSL and AMNS to undergo week-long maintenance shut down for a few days which will hamper the HRC production by 50,000-60,000t which may support increased prices in the domestic market.

Reference Prices as on 5th Sept'20 (Week 36)
Prices are Exw & exclusive of GST

Indian export reference prices as on 5th Sept'20

Prices in USD/MT

Source: SteelMint Research