Weekly round-up: Semi-finished, long steel prices decline even as mixed sentiments prevail

The domestic steel market witnessed a mixed trend in prices during week 4 (22 Jan-24 Jan, 2024). Billet prices fell in the range of INR 100-700/tonne (t).

Iron ore and pellets

• SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, increased by INR 250/t w-o-w to INR 9,850/tonne (t) DAP Raipur on 25 January, 2024. The total deals of 87,500 t were recorded from the Raipur region in the last one week. PELLEX increased after the price revision by local Raipur plants.
  
  
• NMDC increased prices of DR-CLO by INR 300/tonne (t) and fines by INR 400/t, effective 24 January 2024.
  
  
• South India-based pellet maker floated an export tender for 50,000 t of material (Fe 63%; Al2O3- less than 2%) 24 January which was concluded at around $134/t FOB India.
  
  
• Asia-Pacific Supramax dry bulk (cargo capacity 50,000-55,000 t) freight rates for an iron ore-loaded vessel from the east coast of India to China were recorded at $14/t on 24 January, 2024, marking an increase of $0.75 w-o-w, according to BigMint's assessment.
  
  
• BigMint's weekly Indian low-grade iron ore fines (Fe 57%) export index increased by $8/tonne (t) w-o-w to $91/t FOB east coast on 25 January 2024. Totel deals of 190,000 t were recorded of Fe 54-57% grade fines exported from India in the last one week. Iron ore fines export offers saw an uptick this week after improvements in the economic outlook in China for the near term.
  
  

Coal

• Australian premium hard coking coal prices dropped marginally w-o-w to $330/t FOB and $346/ t CNF on 27 Jan'24 amid transactions being concluded at lower level. However, prices are anticipated to rise on cyclone-related supply worries.
  
  
• RB1 (6000 NAR) grade prices remained stable w-o-w to $92/t FOB. Similarly, RB3 remained unchanged w-o-w at $63/t FOB Richards Bay, South Africa.
  
  
• Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port recorded at INR 7,700/t, stable w-o-w.
  
  

Ferros Scrap

• This week in India, potential buyers opted to stay on the sidelines due to a significant gap between bid and offer prices. Additionally, domestic scrap prices proved to be more economically attractive compared to imported scraps, resulting in subdued demand for imported scrap.
  
  
• An official from a steel mill stated, "There is a significant gap between domestic and imported prices, making imports financially unviable, with a minimum gap of $20/t. Therefore, we will refrain from booking imported scrap until it becomes economically feasible, opting to purchase domestic scrap as needed."
  
  
• Another steel mill official stated, "We have sufficient inventories until March, with a focus on domestic procurement. Additionally, we are opting for sponge iron in the charge mix for its cost-effectiveness. Consequently, there is currently no interest in booking imported scrap."
  
  
• The weekly average offers for shredded scrap from Europe experienced a decline of $6/t, reaching $415/t CFR Nhava Sheva, compared to the previous week's $421/t. Simultaneously, HMS (80:20) scrap offers were at $397/t CFR, marking a $4/t decrease from the previous week's $401/t CFR.
  
  

Ferro Alloys

Silico manganese

• Indian silico manganese prices rose, owing to increased export inquiries and a few significant purchases of the 60-14 grade at higher prices. Domestic mills have shown a willingness to stock up in response to rising prices in key steel-producing nations, fearing a scarcity of spot inventory. On January 25, 2024, silico manganese (60-14) sold at around INR 65,000-65,800/t ($782-$792/t) ex-Durgapur, Raipur, and Vizag, up INR 950/t ($11/t).
  
  

Ferro Manganese

• Prices for ferro manganese (HC70%) rose due to limited availability and ongoing production reduction. According to SteelMint, ferro manganese offers in Durgapur and Raipur on January 25th ranged from INR 65,500 to INR 65,700/t ($788-$790/t), with an increase of INR 700/t ($8).
  
  

Ferro Silicon

• Indian ferro silicon (FeSi:70%) prices have fallen by INR 850/t ($10/t) ex-Guwahati and Bhutan. As some companies' BIS licenses were renewed, they received the same bids as before, causing ferro silicon prices to decline. Supply concerns were also rectified, which may have contributed to the price drop. As of January 25, SteelMint reported ferro silicon prices in India at INR 110,000/t ($1,323/t), down INR 200/t ($2/t) exw-Guwahati and INR 110,000/t ($1,323/t) exw-Bhutan, suggesting a price fall of INR 1,500/t ($18/t).
  
  

Ferro Chrome

• On January 25, Indian ferro chrome prices (HC 60%, Si:4%) increased by INR 6,000/t ($72/t), reaching INR 119,000/t ($1,432/t) exw-Jajpur. Prices rose due to market shortages and higher production costs following the OMC's chrome ore auction. Furthermore, at Vedanta-FACOR's ferro chrome auction, the larger lot of 10-150 mm (Cr: 57.5% min) earned an H1 price of INR 117,400/t exw, a 2% increase over the base price of INR 115,000. However, prices for stainless steel (304 grade) ex-Mumbai were INR 173,000/t ($2,081/t) and remained consistent w-o-w.
  
  

Semi-Finished

• Indian semi-finished steel prices showed mixed trend as per BigMint's assessment. Domestic billet prices decreased by INR 100-700/t across regions, with a major decrease of INR 700/t seen in Jalna. However, billet prices in Raigarh, Raipur and Durgapur rose by INR 100/t. Similarly, sponge iron prices in almost all key locations decreased by INR 100-500/t, with a major decrease of INR 500/t seen in the Durgapur market. However, sponge iron prices only in the central region (Raipur and Raigarh) rose slightly by INR 50-150/t.
  
  
• Indian DRI (Direct Reduced Iron) exports offers decreased by approximately $3-5/t, reaching $360/t on CPT Raxaul, and $372/t on CPT Benapole.
  
  
• As per data maintained with BigMint, Raipur Billet index reported trade volumes of around 7,270 tonnes, a w-o-w 31% decrease from 12,760 tonnes.
  
  

Finished-long steel

• Finished Long Steel (IF Route):India's induction furnace route finished long steel witnessed a mixed price trend across the regions this week. Subdued buying interest prevailed in the market as buyers booked material only as per requirement. Due to uncertain market trend and considering the inventory pressure, sellers made slight variations in offers and prices remained rangebound. As per the participants, market might move in a positive direction in the near term owing to rising raw material rates as well as hike in offers announced by primary mills this week.
  
  
• On a weekly basis, in rebar steel prices decreased in the range of INR 100-700/t across the regions except few markets stable also as per SteelMint 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 42,700-43,100/t exw Raipur, INR 47,700-48,200/t exw Jalna.
  
  
• Trade reference price of heavy structural steel for base size 150mm channel stands at INR 46,100-46,300/t exw Raipur.
  
  
• Trade reference prices of wire rod hovering at INR 43,000-43,500/t ex Raipur.
  
  
• BF-route rebar:Some of the leading steelmakers announced increase in rebar list prices by INR 1,000-1,500/t during the week, meanwhile trade-level prices of blast furnace (BF) route rebars remained range-bound across markets on weekly basis amid slow trade activities. Demand from end-users was lackluster due to uncertainty on market dynamics and price movement.
  
  
• SteelMint's weekly price assessment for rebars (12-32 mm, BF-route, IS 1786, Fe500D) for the trade segment dropped marginally by INR 100/t w-o-w to INR 51,400/t, exy-Mumbai, excluding GST at 18%.
  
  

Finished flate steel

• BigMint's latest assessment on 24 January 2024, reported a notional drop of INR 100/t ($1/t) in HR coil prices (IS2062, Grade E250, 2.5-8mm) maintaining the range of INR 53,500-54,500/t ($644-656/t). Similarly, CRC coil prices (IS513, Grade O, 0.9mm) edged down by INR200/t ($2/t) keeping the range INR 61,500-62,500/t ($740-752/t). Prices are quoted ex-Mumbai, on a cut-to-length basis, and exclude GST at 18%.
  
  
• The market exhibits caution with rising inventory levels in the distribution channel. Meanwhile, end-user industrial buyers continued their adherence to the need-based purchasing pattern amid the availability of competitive imported and domestic alternatives. However, despite the slow traders' market activity, there are chatters about mills mulling a price hike for February sales, hinted a distributor source.
  
  
• Indian HRC export offers to the Middle East and Vietnam remain stable at $600/t FOB east coast India. HRC export offers to the Middle East are steady at $635-640/t CFR, while Chinese offers decreased to $610-615/t CFR UAE. HRC export price indications to Vietnam remained stable at $615-620/t CFR, reflecting weak market demand. No firm offers were reported for Vietnam. HRC exports to Europe remain unchanged at $720-725/t CFR as buyers stay cautious. A few deals for CRC exports aggregating around 6,000 t were heard concluded at $815/t CFR Antwerp for late February or early March 2024 delivery.
  
  
• Imported bulk HRC and plates volume reached 471,710 t as of 22 January 2024, catching up with the December 2023 figure of 529,661 t based on monitored vessel line-up data by BigMint.