Weekly round-up: Semi-finished, flat steel prices rise

The Indian domestic steel market witnessed supportive trends during week 5 (24 Jan'22 - 29 Jan'22). Indian semi-finished steel prices increased by up to INR 3,000/t w-o-w.

India's induction route finished long steel market noticed active trade enquiries and transactions in the spot market. Rolling mill owners held adequate future booking orders in hand. Rebar prices increased by INR 1,100-3,300/t w-o-w across regions.

The Indian finished flat steel segment remained strong too. Major mills announced an increase of INR 500-750/t earlier this week.

Iron ore and pellets

• State PSU miner Odisha Mining Corporation (OMC) has scheduled an iron ore auction for 1 Feb'22 for around 23,000 t of lump ore and 60,000 t of fines.
  
  
• Steel major JSW Steel had scheduled an auction for 900,600 t of iron ore fines (Fe 55-58%) today from its Jajang mines in Odisha in which the total quantity put to auction received bids at INR 1,520/t ex-mines, including royalty, DMF and NMET against the base price of INR 600/t. The material auctioned was not for export purposes.
  
  
• SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 12,150/tonne (t) DAP Raipur on 28 Jan'22, up INR 350/t against the last assessment on 25 Jan'22. Around 23,000 t of deals were reported at INR 12,150/t DAP Raipur in the current publishing window. Recovery in export sentiments and rising coal and sponge iron prices pushed pellet offers higher.
  
  

Coal

• Australian premium low-volatile hard coking coal FOB prices rose by $19/t w-o-w.
  
  
• However, prices remained largely stable throughout the week amid stability in US coking coal prices ahead of the Chinese Spring festival holidays.
  
  
• Latest prices for the premium HCC grade are assessed at around $445.5/t FOB Australia and $464/t CNF India.
  
  
• South African RB2 (5500 NAR) portside prices shot up by INR 1,200/t wow at INR 15,000/t for mid-February delivery.
  
  
• South African RB1 prices for Feb'22 shot up by $22/t w-o-w to $182/t, FOB. RB2 is being sold at a premium of $2-3/t over the index price while the RB3 discount has been reduced by $8/t.
  
  

Ferrous scrap

Imported scrap trade in HMS continued to remain active in India for yet another week supported by price hikes in domestic scrap and semi-finished steel. However, bookings for shredded scrap continued to remain limited on bid-offer disparities and higher prices from neighbouring countries.

Recent offers and deals

• A western India-based steel mill bought 2,000 t of UAE-origin HMS 1&2 (80:20) at $485-490/t CFR Kandla.
  
  
• Deals in Dubai-origin HMS1 scrap were concluded at $490-495/t, CFR Nhava Sheva.
  
  
• West Africa-origin HMS (80:20) scrap deals were heard at around $475/t CFR Nhava Sheva and $485/t CFR Chennai.
  
  
• Deals in South Africa-origin HMS were heard at $505-510/t CFR Chennai.
  
  
• Shredded from the UK/EU is being offered at $545-550/t CFR levels. However, deals remained absent due to high offers.
  
  

Ferro alloys

The overall market saw a mixed trend with manganese alloys and ferro chrome prices rising while ferro silicon prices fell w-o-w.

• Indian silico manganese (60-14) prices were hiked by INR 1,150-2,300/t w-o-w to INR 101,550- 102,250/t exw - from both Durgapur and Raipur, according to the assessment on 28 Jan'22. The hike in prices is mainly because of supply tightness across regions.
  
  
• Indian ferro manganese (HC70%) prices rose from Raipur region w-o-w to INR 101,000/t exw due to improved demand and limited supply, as assessed on 28 Jan'22. Prices from Durgapur remained range-bound with a marginal drop w-o-w at INR 101,200/t exw.
  
  
• Indian ferro chrome (HC60%) prices spiked by INR 2,600/t w-o-w to INR 104,600/t exw-Jajpur owing to increased demand from the domestic market. High input costs due to high coke prices also supported ferro chrome prices this week.
  
  
• Indian ferro silicon (70%) prices dropped marginally this week as buyers showed reluctance to book material at higher prices. Currently, ferro silicon prices are hovering at around INR 156,100-156,500/t exw- from both Guwahati and Bhutan.
  
  

Semi-finished

• Indian semi-finished steel prices increased by up to INR 3,000/t ($40/t), w-o-w, as per SteelMint's assessment.
  
  
• Domestic billet prices have increased by INR 1,000-3,000/t across regions with a major increase of INR 2,800-3,000/t seen in Raipur and Raigarh, both in central India. Curtailed production at furnaces in Raigarh as well strengthening coal prices collectively led to the spurt in Indian billet prices.
  
  
• Similarly, sponge iron prices increased by INR 1,000-2,500/t w-o-w on rising coal and steel prices in the domestic market along with active demand, while substitute products remained expensive too.
  
  
• SAIL held an auction for 3,000 t of basic grade pig iron on 25 Jan'22 from the Bhilai Steel Plant (BSP) and the entire quantity was booked at a weighted average price of INR 44,030/t exw.
  
  
• Indian BF-route billet export offers to Nepal rose further by $10-15/t to around $660-665/t, while IF-route offers inched up by $10/t to around $665/t, CPT Nepal. The buyers as well suppliers both opted to wait and watch due to healthy bookings in the last few weeks.
  
  
• Indian sponge iron (lumps 100%, FeM 80%) export offers to Bangladesh rose by $15/t w-o-w to $510/t CPT Benapole, equivalent to $540/t CFR Chittagong. About 10,000-12,000 t of deals were reported this week.
  
  
• Pig iron offers surged by up to INR 2,600/t, w-o-w and a major hike of INR 2,300-2,600/t was recorded in the central region, followed by INR 700-1,500/t in eastern and northern India. Strengthening coal and coke and billets prices resulted in a rally in pig iron offers.
  
  

Finished longs

India's induction-route finished long steel manufacturers, this week, witnessed active trade enquiries and transactions in the spot market with adequate future booking orders in hand. The sharp rise in raw material prices supported the price increase. On a weekly basis, prices in rebar steel increased by INR 1,100-3,300/t w-o-w across the region, SteelMint's assessment shows.

• The trade reference price of Fe 500 grade rebar manufactured via the IF route for 10-25 mm sizes was assessed at INR 51,700-52,100/t exw Raipur, INR 55,000-55,400/t exw-Jalna.
  
  
• Trade discounts given by Raipur-based heavy structural steel manufacturers is around INR 1,000/t and trade reference prices of 200 mm angles stood at INR 57,200-57,600/t exw-Raipur.
  
  
• Trade discounts given by Raipur-based wire rod suppliers are hovering at around INR 500-700/t and trade reference prices stood at INR 52,400-52,600/t exw-Raipur, INR 51,600-51,800/t exw-Durgapur, for 5.5 mm.
  
  

Finished flats

• Indian flat steel trade reference prices continued on the upward track with major mills increasing list prices of HRCs and CRCs for end-Jan'22 sales in the market. Steel major announced an increase of INR 500-750/t earlier this week.
  
  
• Overall, the impact of rising raw material prices in the cost of production has pushed mills to raise prices while distribution network participants started quoting prices at the higher end. "Taking note of the slow trade momentum over the past couple months it is likely that demand from major projects and other downstream flat steel consuming sectors will pick up by mid-Feb'22," shared a few distributors from northern and western parts of the country.
  
  
• Also, mills have increased their export offers for most of the overseas markets like Vietnam, and the Middle East by $50-70/t for Mar'22 shipments after having good volumes recorded for Feb'22 deliveries. This has pushed SteelMint's India HRC (SAE1006) export index up by a significant $58/t w-o-w to $780/t FOB east coast.