Weekly round-up: Indian flat steel prices edge up in sluggish market, IF rebars feel price pressure

The market was characterised by decent demand for long steels, in a pre-election buying spree. Mills raised rebar list prices while trade-level prices rose too. Induction furnace-finished long steel prices came under pressure as enough stocking up had been done in the previous fortnight. Flats remained subdued.

Iron ore and pellets

• BigMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, inched down by INR 100/t w-o-w to INR 9,500/t DAP Raipur on 12 April. Around 23,000 t of deals were recorded in the Raipur region in the last one week. Raipur sellers kept their offers stable, awaiting furthr market directions in NMDC's price revision.
  
  
• Rungta Sons Pvt Ltd has secured Consent to Establish (CTE) for its Sanindpur mines in Odisha. With a significant 19.5% increase, its mining capacity now stands at 19.7 mntpa, up from the previous 16.5 mntpa. This expansion includes the 17.925 mntpa of ROM iron ore and the processing of 1.775 mntpa of low-grade ore from old stocks and dumps, ensuring sustainable operations for the next five years.
  
  
• Domestic low-grade iron ore fines (Fe 57%) prices remained unchanged this week in Karnataka's Bellary. BigMint's weekly index for low-grade iron ore fines (Fe 57%) stood at INR 3,050/t ($37/t) ex-mines Bellary (excluding taxes). Prices were also heard at a higher level of INR 3,700/t ($44/t), excluding taxes.
  
  
• BigMint's India pellet (Fe 63%, 3% Al) export index (FOB east coast) increased by $4/t w-o-w to $96/t on 10 April 2024. Pellet prices increased this week post-Qingming holidays in China. However, no deals were heard in this publishing window amid weak buying interest in the overseas markets. Pellet prices globally increased over the last week following the sharp increase in Chinese spot iron ore fines and futures prices. However, not much transactions were seen amid lack of decent demand.
  
  
• Asia-Pacific Supramax dry bulk (50,000-55,000 t) freight rates for an iron ore vessel from the east coast of India to China recorded a hike of $0.5/t this week to $13.5/t on 10 April, as per BigMint's assessment.
  
  

Coal

• Australian premium hard coking coal prices remained stable w-o-w at $224/t FOB and $241/t CNF on 13 April amid tepid demand from major importing countries.
  
  
• RB1 (6000 NAR) grade prices remained unchanged w-o-w at $102/t FOB. Similarly, RB3 remained stable w-o-w at $68/t FOB Richards Bay, South Africa.
  
  
• Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port were recorded at INR 8,000/t, stable w-o-w.
  
  

Ferros scrap

• This week in India, demand for imported scrap remained steady as buyers approached the market cautiously amidst domestic market fluctuations. On a weekly average basis, shredded scrap offers from Europe saw a slight increase, rising by $3/t to $421/t CFR compared to $418/t CFR in the previous week. Similarly, HMS (80:20) offers also climbed to $395/t CFR, up by $3/t from the previous week's $392/t CFR.
  
  
• In noteworthy transactions, approximately 500 t of turning boring scrap was secured from Europe at $360/t CFR, followed by 2,000 t of handloaded HMS scraps from Kuwait at $415/t CFR, and around 500 t of shredded scrap from the US at $411/t CFR.
  
  
• As per market participants, a primary mill procured around 15,000 t of CRC scraps from various origins, including the UK and Malaysia, at approximately $437/t CFR Vizag.
  
  

Ferro alloys

• Silico manganese:Silico manganese prices in India surged by around INR 1,250/t ($15/t) w-o-w to INR 68,600-69,600/t ($820-832/t) exw across major markets of Raipur, Durgapur, and Vizag.
  
  
• Ferro manganese:Ferro manganese (HC70%) prices were up a w-o-w by INR 1,000/t ($12/t) and INR 900/t ($11/t) in Raipur and Durgapur, reaching INR 69,000/t ($825/t) exw, and INR 68,900/t ($824/t) respectively.
  
  
• Ferro siliconIndian ferro silicon (FeSi:70%) prices witnessed a w-o-w decline of INR 950/t ($11/t), settling at INR 98,500/t ($1,178/t) exw-Guwahati on 12 April down by INR 1,500/t ($18/t). Meanwhile, Bhutan also experienced a drop of INR 600/t ($7/t) w-o-w, reaching INR 99,600/t ($1,191/t) exw.
  
  
• Ferro chrome:Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) declined w-o-w by INR 2,600/t ($31/t) on 12 April, settling at INR 109,000/t ($1,304/t) exw-Jajpur. This drop is attributed to limited acceptance of sellers' offers. Prices dropped following conclusion of Vedanta-FACOR's auction on 5 April as the market shifted prices based on the same.
  
  

Semi-Finished

• Indian semi-finished steel prices showed mixed trend as per BigMint's assessment. Domestic billet prices decreased by INR 200-900/t across regions, with a major decrease of INR 900/t seen in Jalna. However, billet prices in Rourkela, Raiagrh, Goa, Ramgarh and Durgapur rose by INR 100-500/t. Similarly, sponge iron prices in almost all key locations decreased by INR 100-1,000/t, with a major decrease of INR 1,000/t seen in the Jharsuguda market. However, sponge iron prices in Rourkela, Mandi Gobindgarh, and Ramgarh rose by INR 50-300/t.
  
  
• SAIL's Durgapur Steel Plant (DSP) held an auction for 2,000 t of steel-grade pig iron on 12 April'24. The total quantity was booked at an average price of INR 39,550/t exw.
  
  
• NMDC's steel plant in Nagarnar, Chhattisgarh, conducted a steel-grade pig iron auction for a total of 30,000 t on 10 Apr'24. The whole quantity was booked at an average price of INR 37,550/t.
  
  
• SAIL-Rourkela Steel Plant held an auction for 6,000 t of steel-grade pig iron on 10 April'24. The entire quantity was booked at an average price of INR 38,800/t exw.
  
  
• Indian DRI (Direct Reduced Iron) export offers increased by approximately $4/t, reaching $383/t on CPT Raxaul, and $390/t on CPT Benapole.
  
  

Finished-long steel

• IF-Rebar:India's induction furnace route finished long steel prices followed a downside movement almost in all the regions. Limited trades were observed in the spot market amid fluctuating prices and festive atmosphere. Sellers tried to maintain the quoted offer levels as they received sufficient bookings in the previous week. However, constant fluctuations in sponge iron (PDRI) and steel billet as well as unclear market trend forced manufacturers to lower prices or offer discounts as per the quantity. Participants expect prices to remain rangebound in the near-term.
  
  
• On a weekly basis, in rebar steel prices decreased in most of major markets by INR 100-1,000/t and in few locations prices marginally increased by INR 200/t as per BigMint assessment shows.
  
  
• The trade reference price of Fe 500 grade rebar manufactured via the IF route for 10-25 mm size was assessed at INR 45,700-46,100/t exw Raipur, INR 49,800-50,400/t exw Jalna.
  
  
• Trade reference price of heavy structural steel for base size 150mm channel stands at INR 47,100-47,500/t exw Raipur.
  
  
• Trade reference prices of wire rod hovering at INR 46,700-47,000/t ex Raipur.
  
  
• BF rebars: Trade-level prices of blast furnace (BF) rebars witnessed an uptick across markets as some mills announced interim price hike of INR 500-1,000/t during the week. Demand in the traders market remained subdued, which weighed on sentiments. IF-rebar prices dipped marginally w-o-w amid limited trade activities this week as adequate booking were observed in last two weeks.
  
  
• Current week's rebar prices (12-32mm, Fe500D) in the trade segment inched up by INR 100/t w-o-w to INR 53,500/t exy-Mumbai. Prices are exclusive of GST at 18%.
  
  
• In the projects segment, prices rose w-o-w and were hovering around INR 52,000-52,500/t FOR Mumbai owing to good demand from end-users ahead of general elections.
  
  

Finished flat steel

• HR and CR coil prices remained stable amidst sluggish trading due to liquidity constraints and subdued demand. BigMint's latest bi-weekly assessment shows slight upticks: HRC (IS2062, Gr E250, 2.5-8mm) rose to INR 51,500-52,500/t, and CRC (IS513, Gr O, 0.9mm) to INR 60,500-62,000/t ex-Mumbai. However, concerns linger regarding sustained market momentum.
  
  
• BigMint's India HRC export index to the Middle East and Vietnam dropped by $7/t to $560/t. Indian HRC export offers to the Middle East fell by $5-10/t to $600/t, while Chinese offers hovered around $560-565/t. European HRC export prices declined to $640-645/t due to cautious buyers. Chinese offers to Vietnam increased slightly, while Hoa Phat lowered prices by $40-45/t.
  
  
• India's export of bulk hot-rolled coil (HRC) and plates were 52,050t till 8 April 2024, according to vessel line-up data tracked by BigMint.
  
  
• India's imports of bulk hot-rolled coil (HRC) and plates were at 77,056 t till 8 April 2024.