Weekly round-up: Semi-finished prices remain active amid moderate finished steel demand

The domestic steel market saw negative trend in prices during week 11 ( 18-23 March, 2024). Semi-finished steel prices rose in the range of INR 200-1,300/tonne (t).

Iron ore and pellets

• BigMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, remained stable w-o-w at INR 9,200/tonne (t) DAP Raipur on 22 March. In the last one week, around 22,000 t of Fe 63/63.5 deals were recorded in the Raipur region. The pellet offers in Raipur remained unchanged despite the iron ore prices dropped by NMDC. The buyers remained sidelined and waiting for prices revision from the local plants.
  
  
• OMC conducted an auction for 2.9 mnt iron ore auction on 19 March, 2024. Around 1.461 mnt of fines (Fe 54-64%, 86% of total 1.692 mnt ) were booked at INR 3,100-5,000/t. The buyers booked 958,000 t (Fe 58-62%, 78% of the 1.23 mnt offered quantity) lumps at INR 4,300-6,900/t. Buyer's interest remained slowed and bids dropped by I for the majority lots against last month. Bids for fines have decreased by INR 400-950/t and NR 200-600/t for majority of fines and lumps lots against last month's bids respectively.
  
  
• NMDC Chhattisgarh decreased prices of iron ore by INR 200- 250/t ($2.5-3/t) effective from 21 March, BigMint learnt from credible sources. The miner has fixed prices of DR CLO (10-40mm, Fe67%) at INR 6,970/t ($83/t) and of iron ore fines (-10mm, Fe64%) at INR 5,060/t ($62/t) (on FoR basis from its Bacheli complex). Prices include royalty, DMF and NMET charges.
  
  
• BigMint's weekly Indian low-grade iron ore fines (Fe 57%) export index fell by $3.5/t w-o-w to $58.5/t FOB east coast on 21 March 2024. No deals were heard for Fe 57% fines as buyers demanded around the range of 18-20% discount to conclude the deals. The lower-grade fines prices in the export market witnessed a drop amid a lack of buying interest from buyers. The overseas buyers were looking for cheaper material following a sluggish import margin, which was not feasible for Indian sellers. The discount had widened for Fe 57% fines.
  
  

Coal

• Australian premium hard coking coal prices dropped by 10% w-o-w to $245/t FOB and $264/ t CNF on 23 Mar'24 due to muted demand resulting in oversupply.
  
  
• RB1 (6000 NAR) grade prices remained stable w-o-w to $98/t FOB. Similarly, RB3 remained unchanged w-o-w at $66/t FOB Richards Bay, South Africa.
  
  
• Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port recorded at INR 8,000/t,stable w-o-w.
  
  

Ferros Scrap

• The imported ferrous scrap market in India saw sluggish activity this week as buyers opted to stay on the sidelines, enticed by more favorable options in the domestic market. Additionally, with the approach of the Holi festival and the implementation of pre-election codes of conduct, purchasing in the project segment has slowed, affecting scrap consumption in the market.
  
  
• On a weekly average basis, shredded scrap offers from Europe rose to $407/t CFR, up by $4/t from $403/t CFR in the previous week. While, HMS (80:20) offers stood at edged up by $1/t to $379/t CFR.
  
  
• A steel mill mentioned that they have temporarily halted bookings until 31 March due to the financial year closure. Moreover, buying interest is subdued at the moment, likely due to the upcoming Holi festival and elections in April.
  
  
• During the week, notable transactions of 6000-7000 t of HMS were secured from West Africa, South America, and Yemen within the price range of $375-385/t CFR. Additionally, 500 t of turning boring were traded at $350/t CFR. No deals were reported for shredded scrap during this period.
  
  

Ferro Alloys

• Silico manganese:Domestic silico manganese prices in India fell further this week. The price fluctuations of the Indian silico manganese market reflect the complex interplay of regional and global influences. This week, silico manganese (60-14) prices in India declined by INR 300-600/t ($4-7/t) week on week, reaching INR 65,500-65,700/t exw ($783-786/t) in the key producing districts of Durgapur, Raipur, and Vizag. In Durgapur and Raipur, the premium grade of silico manganese (60-15) was priced between INR 66,000 and 66,300/t ($790 and $793) exw. Prices are dropping to a two-month low.
  
  
• Ferro Manganese:Ferro Manganese (HC70%) prices experienced a slight increase on March 20th. Prices rose by INR 200/t to INR 67,000/t ($802/t) in Raipur and INR 67,000/t ($802/t) in Durgapur. This upward movement is attributed to a confluence of constrained supply availability is providing some upward pressure on prices. Increased demand from Southeast Asia is contributing to the price hike.
  
  
• Ferro Silicon:Indian ferro silicon (FeSi:70%) prices dropped by INR 700/t ($8/t) ex-Guwahati and Bhutan. Prices oscillated a bit, as there was supply and demand mismatch and enough material in the market. As of 22 March, BigMint reported ferro silicon prices in India at INR 101,000/t ($1,208/t),exw-Bhutan down by INR INR 1,000/t ($12/t) and INR 101,600/t ($1,215/t), exw Guwahati inched down by INR 400/t ($5/t).
  
  
• Ferro Chrome:On 22 March, Indian ferro chrome (HC 60%, Si:4%) prices dropped by INR 2,000/t ($24/t), reaching INR 114,000/t ($1,364/t) exw-Jajpur. Prices fell as most market players awaited the outcome of the OMC and Vedanta-FACOR auctions. The results of the auction held by Vedanta-FACOR and OMC determined the direction of the domestic ferro chrome market.
  
  

Semi-Finished

• Indian semi-finished steel prices increases as per BiglMint's assessment. Domestic billet prices increased by INR 200-800/t in some key regions, with a major increase of INR 800/t seen in Ramgarh market. However, billet prices in some areas like Ahmedabad, Jalna, Mumbai, Chennai, and Hyderabad witnessed a drop of INR 200-600/t. Similarly, sponge iron prices in almost all key locations also increased by INR 150-1,300/t, with a major increase of INR 1,300/t seen in Ramgarh market. However, sponge iron prices only in the southern region fell by INR 350-400/t.
  
  
• SAIL-Rourkela Steel Plant held an auction for 4,500 t of steel-grade pig iron on 18 March'24. About 1,450 t was booked at an average price of INR 36,350/t exw.
  
  
• SAIL's Durgapur Steel Plant (DSP) held an auction for 2,000 t of steel-grade pig iron on 15 March'24. The total quantity was booked at an average price of INR 37,000/t exw.
  
  
• Indian DRI (Direct Reduced Iron) export offers increased by approximately $2-3/t, reaching $362/t on CPT Raxaul, and $368/t on CPT Benapole
  
  

Finished-long steel

• IF- Rout rebar:India's induction furnace route finished long steel witnessed mixed trend in terms of prices w-o-w across the regions. The trading activities were limited as buyers resorted to need-based buying as they have booked adequate material in the past few weeks. Sellers were compelled to fluctuate the prices as per booking volumes with them or also give attractive discounts as buyers were unwilling to procure the materials at the higher price. A similar movement in sponge iron and steel billet further led to the ongoing trend. Market participants anticipate low trading activity in the near future due to the impending festivities (Holi) and the labor exodus.
  
  
• On a weekly basis, in rebar steel prices seen mixed response in which Northern, Eastern and Central regions increased by upto INR 800/t while in Western and Southern regions prices decreased by upto INR 1,000/t as per BigMint 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 48,500-49,000/t exw Jalna.
  
  
• Trade reference price of heavy structural steel for base size 150mm channel stands at INR 45,300-45,600/t exw Raipur.
  
  
• Trade reference prices of wire rod hovering at INR 43,200-43,700/t ex Raipur.
  
  

• BF-rebar :Trade-level blast furnace (BF) rebar prices remained range-bound on weekly basis across major market amid slow buying activities. Price levels remained supported as mills increased their list prices last week owing to production cuts. This week's rebar prices (12-32mm, Fe500D) in the trade segment rose by INR 400/t w-o-w to INR 52,400/t exy-Mumbai. Prices are exclusive of GST at 18%
  
  
• In the projects segment, prices were hovering around INR 50,000-50,500/t landed Mumbai basis. Buying activities have remained sluggish due to a liquidity crunch, as funding for infrastructure projects is halted in anticipation of the election code of conduct.
  
  

Finished flate steel

• India's hot-rolled (HR) (IS2062, Gr E250, 2.5-8mm) and cold-rolled (CR) coil (IS513, Gr O, 0.9mm) prices held steady across most markets this week. However, prices in Hyderabad fell by INR 900/tonne ($11/t) to a new range of INR 52,500-54,000/t ($632-650/t), while Ahmedabad prices dropped by INR 700/t ($8/t) to a new low of INR 52,500-53,500/t ($632-644/t).
  
  
• Limited trading activity persisted as market participants awaited clarity on price supports from steel mills in the run-up to Holi and the financial year end.
  
  
• India's HR coil exports mirrored the subdued domestic sentiment. The BigMint India HRC (SAE 1006) export index for the Middle East and Vietnam fell by $15/t to $575 FOB east coast India, a seven-month low. European export prices also declined to $640-650/t CFR Antwerp due to weak demand, with buyers expecting further drops.
  
  
• The export volumes of Indian origin bulk HR coil and plates has touched 377,676 t till March 18, 2024, while import has reached 139,161 t during the same period, according to vessel line-up data from BigMint.