Weekly Round-Up: Semi-Finished Prices Remain Subdued Amid Ongoing Market Challenges.

Domestic Induction Furnace Long Steel Prices Decline by INR 100-700/t; Semi-Finished Steel Prices Continue to Fall Amid Market Weakness and Reduced Demand in the Industry.

Coal

• Australian coking coal prices picked on a weekly basis by 2% at $203/t FOB Australia. Prices have moved up on expectation of Chinese stimulus.
  
  
• RB1 (6000 NAR) grade coal prices remained largely stable w-o-w at $102/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 remained unchanged at INR 7,600/t.
  
  

Ferro scrap

• India's imported scrap market remained quiet this week as Diwali holidays led to reduced buyer interest and softer demand. Workable prices for shredded scrap dropped to around $385-386/t CFR, Nhava Sheva with busheling at $400/t depending on suppliers, and bids for HMS (80:20) ranged from $362-370/t CFR Mundra/Chennai. While immediate demand was muted, traders aimed to secure lower prices, anticipating new shipments by late November.
  
  
• After Diwali, activity is expected to pick up as suppliers look to clear inventories before the harsh winter sets in, which could disrupt European supply flows. Buyers are eyeing more competitive levels of around $360/t for HMS (80:20) and $372-375/t for HMS 1, and some industry players are optimistic that fresh supplies will arrive from the EU by mid-November. However, any severe winter weather in Europe could shift supplies from alternate regions like the US, Brazil, and Australia into the Indian market.
  
  

Ferro alloys

• India's leading manganese ore producer, MOIL, has announced new prices effective 1 November 2024. Grades above 44% will experience a 7% price reduction, while grades below 44%, including SMGR and fines, will be lowered by 1% m-o-m.
  
  
• Domestic silico manganese prices have dropped to a nearly one-month low due to panic selling and decreasing offers. This week's decline underscores market challenges, with the festival season pressuring buyers to liquidate inventory. Notably, tags for the 60-14 grade drifted down by INR 450/t ($5t) w-o-w to INR 66,600-67,600/t ($791-803/t) exw in Raipur, Durgapur, and Visakhapatnam.
  
  
• Indian ferro manganese (HC70%) prices inched down by around INR 700/t ($8/t) w-o-w to INR 68,500/t ($814/t) exw in Raipur and by INR 900/t ($11/t) w-o-w to INR 68,100/t ($809/t) in Durgapur. Continued poor market demand and unacceptance towards higher quotes pulled the prices down.
  
  
• Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) remained largely stable, inching down by INR 650/t ($8/t) w-o-w to INR 109,900/t ($1,306/t) exw-Jajpur on 30 October. Prices were largely stable amid limited demand, and regular trades were carried out at the ongoing market rates. Additionally, resistance was seen towards higher offers.
  
  

Semi-finished

• Indian semi-finished steel prices showed downtrend as per BigMint's assessment. Domestic billet prices in almost all key locations decreased by INR 100-600/t across regions, with a major decrease of INR 600/t seen in the Mandi Gobindgarh market. Also, sponge iron prices showed downtrend trend, almost all key locations decreased by INR 200-1,100/t, with a major decrease of INR 1,100/t seen in the Rourkela market.
  
  

Finished long steel

• IF-rebar:India's induction furnace route finished long steel prices dropped further this week. Since, there was festive atmosphere in the market, traders have purchased as per requirement only. Along with limited new bookings, dispatch and lifting of previously booked material was also slow owing to the transportation and labour issue during the festival time as reported by participants. A similar trend was noticed in sponge iron and steel billet, which further led to the ongoing scenario. Despite decrease in offers and attractive trade discounts offered by suppliers at the moment, buyers have resorted to need based buying owing to weak market sentiments currently.
  
  
• On a weekly basis, in rebar steel prices declined in the range of INR 100-700/t across the regions 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 42,300-42,700/t exw Raipur, INR 46,900-47,500/t exw Jalna.
  
  
• Trade reference price of heavy structural steel for base size 150mm channel stands at INR 44,700-45,200/t exw Raipur.
  
  
• Trade reference prices of wire rod hovering at INR 42,700-43,200/t ex Raipur.
  
  

Flat steel

• Hot-Rolled Coil (HRC) and Cold-Rolled Coil (CRC) prices have maintained relative stability during the recent Diwali celebrations. Major markets were closed for much of the week, contributing to the calm market conditions.
  
  
• However, market participants anticipate that steel mills may soon implement price increases, potentially ranging from INR 500-1000/t.
  
  
• BigMint's cumulative import volume, based on vessel lineup data, reached 6,4,479t till 28 October 2024. However, an additional 1,32,365t is expected by first week of November.
  
  
• Indian hot-rolled coil (HRC) export prices to the Middle East declined by $10/t w-o-wk, reaching $560/t CFR, down from $570/t CFR the previous week, according to sources. Approximately 20,000-25,000t of HRCs were booked from India at the $560/t CFR Middle East levels.
  
  
• Meanwhile, India's HRC export offers to Europe (S275, 3 mm) remained steady at $590-595/t CFR Antwerp ($540-545/t FOB, east coast India). Additionally, a transaction of about 2,000t of HRCs was reported at $600/t CFR Antwerp for November shipment.