Weekly round up: Semi-finished prices fall amid sluggish steel demand

The domestic steel market saw negative trend in prices during week 16 ( 24-29 April, 2023). Semi-finished steel prices dropped in the range of INR 500-1,350/tonne (t).

Domestic induction furnace finished long steel offers witnessed a downtrend in prices. Prices decreased in the range of INR 400-1,900/t. The trade reference prices for hot rolled coil (HRC) and cold rolled coils (CRC) noticed a downtrend with a fall of INR 100-1,000/t seen in the market.

Iron ore and pellets

• SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, inched down INR 50/t to INR 9,250/t DAP Raipur on 28 April 2023 compared to the previous week. Pellet prices remained stable as sponge iron ore prices decreased this week. Deals of 21,000 t were concluded at INR 9,250/t DAP Raipur this week.
  
  
• India's largest merchant iron ore mining company, NMDC, has decreased list prices of iron ore today by 300/t for DR-CLO and fines by INR 100/t, effective from 29 April, 2023.
  
  
• JSW Steel had conducted an auction for 268,600 t of iron ore fines from its Jajang mines in Odisha. Out of the total material offered, only 19,750 t (Fe54%) got sold at the base price of INR 1,700/t. In another auction on 28 April, JSW Steel sold 82,950 t of lumps at a base price of INR 2,900/t out of 197,500 t (10-40mm, Fe 56.5%) on offer.
  
  
• Sandur Manganese and Iron Ores Ltd (SMIORE) has concluded an iron ore auction for 160,000 t of fines (Fe 57-57.9%) in Bellary, Karnataka, on 28 April, 2023. According to sources, the entire quantity offered was booked at the base price of INR 3,070-3,225/t. Prices are ex-mines/stack yard and include royalty, DMFand NMET charges.
  
  
• NMDC conducted an auction for 728,000 t of iron ore (both fines and lumps) from its Kumaraswamy mines in Karnataka on 25 April, 2023. According to sources, 68,000 t of lumps (10-40mm, Fe62.77-64.47%) were booked at the base price of INR 3,501-3,775/t and 180,000 t of fines (Fe53.70-63.87%) were booked at the base price of INR 2,003-3,448/t. Prices exclude royalty, DMF, and NMET charges.
  
  
• SteelMint's India pellet (Fe 63%, 3% Al) export index FOB east coast was recorded at $100/tonne (t), decreasing by $9/t w-o-w, due to low demand in China and the upcoming labour holidays. Indian pellet players are currently holding back offers for exports. As a result, there are very less offers in the market.
  
  

Coal

• Australian premium hard coking coal prices dropped by $25/t w-o-w to $232/t FOB and $247/t CNF on 29 April, 2023 as there was ample spot supply of the raw material. Meanwhile, demand from Chinese and other Asian countries was limited.
  
  
• Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port were recorded at 9,900/t, down by INR 300/t w-o-w.
  
  
• RB1 (6000 NAR) grade prices inched up w-o-w to $129.25/t, FOB and RB3 prices were stable at $90/t FOB.
  
  

Ferrous scrap

• The Indian imported scrap market was impacted by a sluggish finished steel market. There were limited offers available in the market as sellers forwarded the same to India amid the inactivity of Pakistan and Bangladesh. However, demand remains lacklustre due to weak finished steel buying sentiment, a market insider said. As a result, prices saw a downtrend. Indian buyers are looking for discount and bid at $435/t for European shredded. However, no deals were concluded yet at this price.
  
  
• SteelMint's assessment for imported shredded scrap in containers stood at $445/t CFR, down $13/t w-o-w.
  
  

Ferro alloys

• According to SteelMint, Indian silico manganese prices edged down 1% w-o-w on 29 April 2023 to INR 73,200/t ex-Durgapur, Vizag stood at INR 73,850/t exy, and Raipur at INR 73,100/t exy. Due to restricted regional demand and export inquiries, silico manganese prices have been falling consistently.
  
  
• As on 29 April 2023, Indian ferro manganese prices remained stable w-o-w to INR 76,000/t ex-Durgapur and ex-Raipur at INR 76,100/t. With a decline in special steel demand, ferro manganese prices remained stable.
  
  
• According to SteelMint's assessment on 27 April 2023, majority of producers were offering at around INR 105,000/t exw Jajpur. Indian ferro chrome prices increased by INR 4,400/t ($54) w-o-w due to improved inquiries and high production costs, as OMC's chrome ore auction results showed a 17-23% uptick from the base price.
  
  
• According to SteelMint's assessment on 28 April 2023, Guwahati-based producers were offering at around INR 121,000-124,000/t exw. On the other hand, Offers in Bhutan were hovering at INR 122,000-124,500/t exw for 70% material. India's ferro silicon prices inched up by INR 1,900/t exw w-o-w on an improved demand and production curtailment due to power cuts.
  
  

Semi-finished

• Indian semis prices slowed down this week amid lessened enquiries of finished products in major markets. Domestic billet prices fell by INR 500-1,350/t. Similarly, sponge manufacturers were being pressurised and they started reducing their offers by INR 500-1,050/t w-o-w.
  
  
• Bhilai Steel Plant (BSP) held an auction for 2,000 t of steel grade pig iron on 25 April, 2023. Out of 2,000 t, only 800 t was booked at an average price of INR 41,700/t exw, rest remained unsold.
  
  
• Lloyds Metals and Energy Limited recorded iron ore sales of 1.1 mnt in Q4FY23 (January-March, 2023), rising significantly as against 0.25 mnt seen in the same period last year.
  
  
• Rourkela Steel Plant (RSP) held an auction for 1,200 t of steel grade pig iron on 27 April, 2023. The entire quantity was booked at an average price of INR 41,800/t exw.
  
  
• Vizag Steel has floated an ocean sale export tender for 30,000 t of steel blooms (150x150mm, 3SP/4SP) on FOB ST delivery against 100% advance payment terms. The last date for bid submission is 4 May, 2023.
  
  

Finished long

• India's induction furnace-route finished long steel market witnessed downtrend w-o-w in terms of prices. Average trading activities were observed in the spot market. Traders are booking materials according to their needs, taking into account the prevailing market conditions. Mill officials are offering discounts as per payment and delivery terms in order to escalate sales. However, still transactions were limited in the spot market.
  
  
• In rebar steel, prices sharply decreased by INR 400-1,900/t w-o-w across regions, as per SteelMint's assessment.
  
  
• 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 54,300-54,800/t exw Jalna.
  
  
• Trade reference price of heavy structural steel for base size 150mm channel stood at INR 51,300-51,500/t exw Raipur.
  
  
• Around 8,700 tonnes of deals recorded in steel wire rod (5.5 mm, SWRY 14) in Raipur market. Currently, prices of wire rod are hovering around INR 49,700-50,000/t ex Raipur.
  
  
• Trade level rebar prices made through blast furnace-(BF) route registered fall w-o-w amid sluggish demand in the distribution channel. Anticipation of further price drop has made buyers to adopt wait-and-watch mode, leading to limited buying activities. Furthermore, market awaits mills' price announcement for May sales, which is likely to come next week.
  
  
• Rebar offers in projects segment were heard around INR 58,000-59,000/t FOR Mumbai.
  
  
• SteelMint's weekly price assessment for rebar (12-32 mm, BF-route, IS 1786, Fe500D) for the trade segment fell by INR 600/t w-o-w to INR 58,800/t, exy-Mumbai, excluding GST at 18%.
  
  

Finished flat

• Trade level prices of HRC and CRC dropped this week to INR 58,500-59,500/t and INR 62,500-63,500/t, respectively. Prices mentioned are exy-Mumbai, excluding GST at 18%.
  
  
• Lacklustre buying interest in the traders' market, import bookings for May and June deliveries are some of the key reasons for downward price correction.
  
  
• On the exports front, offers dropped amid lower indications from other countries and sluggish demand in major importing markets. SteelMint's India HRC (SAE1006) export index dropped to $685/t FOB east coast this week, down $10/t w-o-w.

  Participants are now keenly looking forward to mills' list price announcement for May 2023 sales in the upcoming week.