Weekly round Up: Semi-finished market edges down, Flat steel price remains volatile

The domestic steel market saw downtrend during week 6 ( 6 February- 11 February, 2023). Semi-finished steel dropped in the range of INR 450-1,700/tonne (t).

Domestic induction furnace finished long steel offers saw a negative price trend. Offers plunged by up to INR 400-2,300/t w-o-w. The trade reference prices for HRC and CRC varied in the range of INR 100-1,100/t across region.

Iron ore and pellets

• SteelMint's bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 10,000/tonne (t) DAP Raipur, inching down by INR 100/t compared to the last assessment on 7 February, 2023. No deals were reported in the current publishing window. Most of the buyers kept away from making fresh bookings on falling sponge prices and anticipation of drop in pellets offers in the near-term.
  
  
• Odisha Mining Corporation's (OMC's) conducted an auction for the sale of over 341,000 t of unsold iron ore produced by ex-lessees in the auctioned mines in Odisha from Koira and Joda mining circles on 9 February, 2023. 268,000 t of subgrade lumps (5-30 mm, 57.49%) were sold at INR 150/t higher than base prices of INR 3,205/t and 73,000 t iron ore lumps (Fe52.84%) were sold at the floor price of INR 1,322/t. Prices were inclusive of royalty, DMF, and NMET charges.
  
  
• ArcelorMittal Nippon Steel India (AM/NS India) conducted an auction for sale of 40,000 t of iron ore fines (Fe54%) from its Sagasahi mines in Odisha on 8 February, 2023. According to sources, the entire quantity was booked at the floor price of INR 2,000/t. The price is on ex-mines/loaded onto truck and included royalty, DMF, and NMET.
  
  
• NMDC conducted an auction for 558,000 t of iron ore from its Kumaraswamy mines in Karnataka on 7 February, 2023. Out of which, 188,000 t of lumps (10-40mm, Fe59.50-64.97%) were booked at the base price of INR 2,892-3,752/t and 296,000 t of fines (Fe58.24-63.68%) were booked at the base price of INR 2,566-3,321/t. All prices exclude royalty, DMF, and NMET charges.
  
  
• SteelMint's India pellet (Fe 63%, 3% Al) export index FOB east coast was recorded at $118/t, down $8/t w-o-w on declining bids from buyers. According to market sources, the drop in iron ore prices and sluggish steel demand led to fall in bids.
  
  

Coal

• Australian premium hard coking coal prices increased sharply by $20/t w-o-w to $370/t FOB and $383/t CNF on 11 February, 2023 over possible supply disputation and on improved demand from Asia.
  
  
• Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port recorded a drop by INR 400/t w-o-w to INR 11,100/t, ex-port.
  
  
• RB1 (6000 NAR) grade prices fell by 2% to $142.65/t FoB while RB3 prices are assessed at $95-96/t FOB.
  
  

Ferrous Scrap

• Indian ferrous scrap market remains dull: Indian ferrous scrap market remained almost silent and buying inquiries were muted due to dull finished steel market. Market players are now in a wait-and-watch mode to get clarity about market trends.
  
  
• SteelMint's daily assessment for UK-origin shredded stood at $465/t CFR Nhava Sheva, moving up by $5-10/t w-o-w.
  
  

Ferro Alloys

• As on 10 February 2023, prices of Indian silico manganese increased by 3% w-o-w to INR 77,500 exw Durgapur and INR 77,500/t exw Raipur. The cost of silico manganese increased as a result of rising manganese ore costs and moderate local demand.
  
  
• Indian ferro manganese prices inched up by 3% w-o-w to around INR 80,000/t exw Durgapur and INR 80,000/t exw Raipur, as measured on 10 February, 2023. As a result of the increase in raw material cost, it caused prices of ferromanganese to climb.
  
  
• According to SteelMint's assessment on 9 February, ferro chrome (HC60%) prices were hovering at INR 121,500/t exw Jajpur. Prices increased by INR 5,000/t w-o-w as producers raised prices to match export offers which found acceptance in domestic market.
  
  
• Indian ferro silicon prices remained stable w-o-w due to moderate demand. According to SteelMint's assessment on February 10, Bhutanese producers were offering around INR 126,000/t, while Guwahati's offer for ferro silicon was around INR 125,000/t.
  
  

Semi-finished

• Semis trades slowed down this week as prices slumped by INR 450-1,700/t amid lower enquiries for finished products in major markets.
  
  
• Domestic billets prices fell by INR 800-1,700/t. Similarly, sponge manufacturers were under pressure to reduce offers by INR 450-1,300/t w-o-w.
  
  
• Vizag Steel has floated an ocean sale export tender for 20,000 t of steel billets (90x90mm, C20MMn Gr. A). The due date for bid submission for the tender is 13 February, 2023 and the delivery is scheduled for 25 March, 2023.
  
  
• Tata Metaliks reduced pig iron (both basic and foundry grades) prices by INR 700/t ($8/t) amid lower demand and higher offers. Current offers of foundry grade stand is at INR 48,800/t and basic grade (Si 1.0-1.5%) at INR 45,800/t. Prices are exw-Kharagpur and applicable for Kolkata and Howrah.
  
  
• SAIL-Bhilai Steel Plant (BSP) conducted an auction for 10,100 t of commercial rails (60 kg and 52 kg, full length) on 8 February, 2023. As per sources, only 1,500 t of 60 kg rails were booked at INR 42,800/t ex-works.
  
  

Finished-Long

India's induction furnace route finished long steel prices plunged further while demand continued to remain subdued specifically in the retail segment. Traders are procuring material in the needful quantity due to lack of buying enquiries from end-users, which has led to a rise in inventory in the mills. Manufacturers were offering discounts over and above the reduced offer price in order to clear out stock. A downward price movement in sponge iron and steel billet, also led to price corrections in finished long steel segment. Mills might have to adjust the production levels which varies from region to region accordingly in order to avoid excess inventory.

• Rebar steel prices dropped by INR 500- 2,300/t w-o-w across the regions, SteelMint assessment showed.
  
  
• The trade reference price of Fe 500 grade rebar manufactured via the IF route for 10-25 mm size was assessed at INR 49,300-49,700/t exw Raipur, INR 54,800-55,200/t exw Jalna.
  
  
• Trade discount given by Raipur- based heavy structural steel manufacturers is over INR 2,500/t and trade reference price of 200 mm angles stood at INR 55,600-56,200/t exw.
  
  
• Trade discounts in Raipur wire rods given by suppliers is over INR 1,000/t and trade reference price at INR 48,800-49,200/t exw Raipur and INR 48,600-49,000/t exw Durgapur, size 5.5 mm.
  
  
• This week trade level prices of rebars made through blast furnace (BF) route showed mixed trend across major markets, remaining largely rangebound against last week price levels. Restocking demand in the distribution channel slowed down during the week. Meanwhile, IF-route rebar prices fell by up to INR 1,000/t w-o-w across markets.
  
  
• SteelMint's weekly price assessment for rebars (12-32 mm, BF-route, IS 1786, Fe500D) dropped by INR 300/t w-o-w to INR 63,200/t, exy-Mumbai, excluding GST at 18%.
  
  

Finished Flat

• Trade reference prices of hot-rolled coils (HRC) dropped by around INR 1,100/t ($13/t) w-o-w in the key market of Mumbai this week. Active restocking in the past few weeks amid rising prices by mills had kept the momentum going for trade-level prices. Now activities started slowing since the beginning of this week.
  
  
• Global HRC markets too have started turning volatile which has made end-buyers cautious about the domestic trade price levels.
  
  
• As per our latest assessment on 8 February, trade segment HRC prices dropped to INR 59,500-60,500/t ($719-731/t) exy-Mumbai.