Weekly Round-Up: Semi-finished prices increase amid uptick in steel demand

The Indian domestic steel market saw an uptick last week. Semi-finished steel prices rose by INR 500-2,000/tonne. Induction furnace-route finished longs surged w-o-w as a result of improved buying activity post-Diwali as well as due to rise in prices of raw materials like billets and sponge iron.

Iron ore and pellets

• BigMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, remained largely stable w-o-w at INR 9,950/tonne (t) DAP Raipur on 8 November. Around 91,500 t of pellet (Fe62.5-65.5%) deals were recorded in the Raipur region. Offers from local producers remained stable in Raipur at INR 9,800-9,900/t.
  
  
• NMDC held an auction for 220,000-t iron ore on 5 November from its Kumaraswamy mines. Around 80,000-t of lumps (10-40 mm, Fe 59.49-64.24%) booked at INR 5,203-6,680/t against the base prices INR 4,653-5,840/t. Around 140,000-t fines (Fe 63.12-63.80%) were booked at INR 5,492-5,520/t against the base prices of INR 4,622-4,765/t. Prices were on ex-mines basis, including royalty, DMF, and NMET. At NMDC's 7 November auctions from Chhattisgarh, 50,700 t of iron ore were booked. From Kirandul mines, 4,300-t ROM (10-150 mm, Fe 65.5%, 43,000 t offered) were sold at a base price of INR 5,920/t. The entire 34,400-t DR-CLO lot (10-40 mm, Fe 67%) was sold at INR 8,094/t and 12,000-t lumps (10-20 mm, Fe 65.5%) at INR 7,050/t from the Bacheli mines.
  
  
• BigMint's bi-weekly Indian low-grade iron ore fines (Fe 57%) export index inched up by $1/tonne (t) w-o-w to $65/t FOB east coast, India, on 7 November. Reportedly, Odisha-based exporters sold 105,000 t of iron fines (Fe 57%) at $76-79/t CFR China this week. Additionally, another Indian trader sold a cargo of 55,000 t of iron fines (Fe 56-57%) at around the same price this week. BigMint's India pellet (Fe 63%, 3% Al) export index (FOB east coast) remained stable w-o-w at $98/t on 8 November.
  
  
• Asia-Pacific Supramax dry bulk freights (50,000-55,000 tonnes) for iron ore shipments from the east coast of India to China remained largely stable w-o-w at $12.25/t on 6 November. Limited cargoes were seen at the portside due to sluggish demand. However, a few fixtures from the Indian Ocean maintained freights at a similar level. Also, major Australian miners were seen fixing Capesize vessels for mid-November 2024 shipment at same levels.
  
  

Coal

• Australian coking coal prices picked up on a weekly basis by 2% to $207/t FOB Australia. Prices have moved up on some buying interest being witnessed by Chinese traders.
  
  
• RB2 (6000 NAR) grade coal prices remained largely stable w-o-w at $90/t FOB. RB3 prices remained unchanged at $70/t FOB Richards Bay, South Africa.
  
  
• Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port edged up at INR 7,700/t.
  
  

Ferrous scrap

• India's imported scrap market showed renewed activity this week, with rising prices influenced by both international and domestic factors. Indian buyers, initially cautious, began engaging more actively as market conditions shifted. Offers for shredded scrap, which started at $390-395/t CFR Nhava Sheva, saw a gradual increase, reaching $400-405/t as demand strengthened. The uptick was driven by tight domestic scrap supplies, which were constrained by recent festive transportation delays, and by price hikes in finished steel by primary mills, boosting demand across the sector. Additionally, anticipation around potential price movements, post-US elections, added urgency to procure materials, further lifting offers. HMS (80:20) from UK/Europe and West Africa saw offers rise to $370-375/t CFR, aligning with buyers' shifting needs and an increasingly optimistic market sentiment.
  
  
• Ferro alloys

  Silico manganese: Domestic silico manganese prices declined this week due to a combination of factors, including panic selling and falling offers from market participants. The surplus material available with traders further exacerbated the downward pressure on prices. Notably, prices for the 60-14 grade drifted down by INR 900/t ($11t) w-o-w to INR 65,800-66,600/t ($780-789/t) exw in Raipur, Durgapur, and Visakhapatnam.
  
  

• Ferro manganese: Indian ferro manganese (HC70%) prices inched down by around INR 1,000/t ($12/t) w-o-w to INR 67,500/t ($800/t) exw in Raipur and by INR 600/t ($7/t) w-o-w to INR 67,500/t ($800/t) in Durgapur. Weak market demand and resistance to higher quotes led to a decline in prices, further exacerbating the negative trend.
  
  
• Ferro silicon: Indian ferro silicon (FeSi: 70%) prices rose by around INR 1,900/t ($23/t) w-o-w to INR 109,700/t ($1,300/t) exw-Guwahati on 8 November. However, prices in Bhutan also increased by INR 3,000/t ($36/t) to INR 110,000/t ($1,304/t) exw. Post Bhutan's price announcements the prices witnessed hikes but the acceptance towards those offers were minimal.
  
  
• Ferro chrome: Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) remained unchanged w-o-w at INR 109,900/t ($1,302/t) exw-Jajpur on 8 November. Prices were unaltered as only need-based procurement was being done in the market and offers also remained unchanged.
  
  

Semi-finished

• Indian semi-finished steel prices showed an increased as per BigMint's assessment. Domestic billet prices in almost all key locations increased by INR 500-2,000/t across regions, with a major increase of INR 2,000/t seen in the Mumbai market while, only Rourkela downtrended by INR 50/t. Similarly, sponge iron prices showed positive trends. Almost all key locations showed increased of INR 700-1,000/t, with a major increase of INR 1,000/t seen in the Bellary and Rourkela markets.
  
  
• SAIL-Bokaro Steel Plant (BSL) held an auction for 14,000 t of steel-grade pig iron on 8 November. The total volume was booked at an average price of INR 35,000/t exw. In the previous auction on 16 October, the entire 14,000 t of steel-grade pig iron on offer was sold at an average price of INR 37,075/t exw.
  
  
• NMDC's steel plant in Nagarnar, Chhattisgarh, conducted an auction for 30,000 t of steel-grade pig iron on 7 November. Out of 30,000 t, 15,000 t were booked at an average price of INR 34,000/t. However, management approval is still pending. The volume booked at the latest auction is much lower than that sold in the previous auction, held on 17 October. There, out of 32,000 t, 25,000 t were booked at an average price of INR 36,000/t.
  
  

• SAIL-Durgapur Steel Plant (DSP) held an auction for 2,500 t of steel-grade pig iron on 7 November. The entire quantity received bids at an average price of INR 35,600/t exw. In the previous auction, held on 6 September, the entire quantity of 2,500 t of steel-grade pig iron was booked at an average price of INR 35,150/t exw.
  
  
• SAIL-Rourkela Steel Plant (RSP) held an auction on 6 November for 6,000 t of steel-grade pig iron. The entire volume on offer was booked at an average price of INR 35,000/t exw. Previously, on 19 October, RSP auctioned 3,000 t of steel-grade pig iron, with the entire quantity sold at an average price of INR 36,800/t exw.
  
  
• Indian DRI export offers decreased by $11/t for CPT Raxaul to $364/t while CPT Benapole offers decreased by $19/t to $361/t.
  
  

Finished longs

• IF-rebar: India's induction furnace-route finished long steel prices surged w-o-w. Such a trend was brought on as a result of improved buying activity post-Diwali as well as due to rise in prices of steel billets and sponge iron. Suppliers reported moderate bookings till mid-week. However, bookings slowed down later at higher offers as buyers opted for a wait-and-watch approach to gain further clarity on the market direction. Also, lifting of previously booked material was resumed as festivities ended. Considering the current market scenario, participants expect fluctuation in prices to continue in the near-term.
  
  
• On a weekly basis, rebar prices increased in the range of INR 300-1,500/t across regions as per BigMint assessment.
  
  
• The trade reference price of Fe 500 grade rebar manufactured via the IF route, 10-25 mm, was assessed at INR 43,600-44,000/t exw-Raipur, and INR 47,400-48,000/t exw-Jalna.
  
  
• Trade reference prices of heavy structural steel of base size of 150mm stands at INR 45,700-46,200/t exw Raipur.
  
  
• Trade reference prices of wire rods hovered at INR 43,700-44,300/t ex Raipur.
  
  
• BF-Indian primary mills increased rebar list prices by up to INR 1,000/t for early-November 2024 sales. Post revision, list prices hovered at INR 54,500-55,500/t on landed basis. Following the price hike, trade-level BF-rebar prices increased w-o-w by INR 400-800/t across markets. Meanwhile, buying interest in the trade channel remained slow.
  
  
• Current week's rebar prices (12-32mm) in the trade segment increased by INR 500/t w-o-w to INR 55,000/t exy-Mumbai, excluding 18% GST.
  
  
• In the project segment, prices were hovering around INR 54,000-55,000/t FOR Mumbai, up by INR 500/t from last week.
  
  

Flat steel

• Tier-I steel mills officially announced a price increase of INR 800-1,000/t ($6-18/t) for hot-rolled coils (HRCs) and cold-rolled coils (CRCs) for their November 2024 sales. This upward adjustment was primarily driven by the recent rise in NMDC iron ore prices and ongoing speculations about potential anti-dumping duty implementations. While this price hike has been confirmed by several mills, official confirmation from a few others is still awaited.
  
  
• List prices of HRCs (2.5-8 mm, IS2062, Gr E250, Br.) stood at INR 49,000-50,000/t exy-Mumbai, while CRCs (0.9 mm, IS513 CR1) hovered at around INR 56,000-57,000/t. These prices exclude GST of 18%.
  
  
• As per BigMint's vessel line-up data, the cumulative import volume reached 67,595 t till 4 November. In October 2024 these touched 687,297 t. An additional 169,626 t is expected to come in the current month.
  
  
• BigMint's India hot-rolled coil (HRC, SAE1006) export index, covering the Middle East and Vietnam, remained stable despite weaker global market conditions. Prices are currently assessed at approximately $535/t FOB, east coast India. Sentiment in the Middle East remained subdued, driven by limited trade activity. Indian HRC export offers to Europe (S275, 3mm) held steady in the range of $590-595 per ton CFR Antwerp ($540-545/t FOB east coast India). However, Indian steel mills' export offers remain less competitive in the European market due to their higher price levels relative to domestic prices and ongoing EU trade restrictions. Additionally, India has utilized only 3% of its EU steel safeguard quota for HRC in the October-December quarter, impacted by weak European demand and an ongoing anti-dumping investigation.