Weekly round-up: Semi-finished prices up, flats still volatile

The domestic steel market witnessed an upward trend during week 53 ( 26 - 31 December, 2022). Semi-finished steel prices increased by INR 600-3,000/tonne (t).

Domestic induction furnace-grade finished long steel offers were up by up to INR 3,000/t w-o-w. The trade reference prices for HRCs increase by INR 1,000/t while CRCs varied in the range of INR 200-500/t.

Iron ore and pellets

• SteelMint's bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 9,650/t, up by INR 350/t compared to the last assessment on 27 December, 2022. Around 35,000 t of deals were reported in this current publishing window.
  
  
• VESCO conducted two auctions of 104,000 t of iron ore. Out of this, 12,000 t of fines (Fe61.6-63.5%) and 8,000 t of lumps (Fe62.6-64.95%) were booked at base prices of INR 3,250-3,475/t and 4,200-4,550/t, respectively.
  
  
• India's pellets export trade slightly improved against last week with three deals being reported from India this week. SteelMint's India pellets (Fe 63%, 3% Al) export index, FOB east coast, was recorded at $109/t, up by $1/t w-o-w. An Indian mill floated an export tender for 50,000 t of pellets (Fe 63%, 8% SiO2+Al2O3). The deal was heard concluded at around $116/t FOB for January shipment.
  
  
• SteelMint's weekly price index of India's low-grade iron ore fines (Fe 57%) exports stood at $65/tonne (t) FOB east coast on 29 December, 2022, stable w-o-w. Trading activity was muted, with the majority of market participants cautious about acquiring more material given the decline in buying interest from of mills.
  
  

Coal

• Australian hard coking coal prices rose by $9/t w-o-w to $295/t FOB and $310/t CNF India amid positive sentiments of trade resumption between Australia and China.
  
  
• Portside RB3 (4800 kcal/kg NAR) grade coal prices remained unchanged at INR 12,700/t ex-Vizag with limited change in demand dynamics.
  
  
• High-CV RB1 (6000 kcal/kg NAR) grade coal prices fell marginally by $2/t to $205/t FOB amid muted demand from the market.
  
  

Ferrous scrap

• India's ferrous scrap market largely quiet: Indian ferrous scrap market remained largely silent, with a negligible deal from the Middle East. India became the second-largest ferrous scrap importer in 2022. This happened mainly because the bulk cargo which found no takers in the traditional markets, had ready buyers in India, who drove a hard bargain. The Indian market had availability of materials but fewer buyers which kept the domestic market slow too.
  
  
• SteelMint's assessment for Europe-origin shredded was recorded at $447-450/t CFR, stable w-o-w.
  
  

Ferro alloys

• In SteelMint's assessment on 30 December 2022, Indian silico manganese prices increased by 4% on a weekly basis to 78,600/t ex-Durgapur, INR 78,400/t ex-Vizag, and INR 79,500/t ex-Raipur. Prices for silicon and manganese gradually increased due to rise in domestic demand and a hike in the electricity rate.
  
  
• As on 30 December 2022, Indian ferro manganese prices were nearly stable w-o-w at INR 74,700/t ex-Durgapur and ex-Raipur at INR 75,000/t, up 1%. Demand for special steel remained flat, although ferro manganese prices held steady.
  
  
• According to SteelMint's assessment on 29 December, Indian ferro chrome prices rose sharply by INR 2,800/tonne (t) w-o-w to around INR 103,500/t exw-Jajpur. Indian ferro chrome prices rose by INR 2,300/t w-o-w amid healthy demand in the export market and hike in Chinese prices which also kept prices supported in India.
  
  
• According to SteelMint's assessment on 30 December, ferro silicon (70%) prices were range-bound at around INR 118,000-120,000/tonnes(t) exw- from both Guwahati and Bhutan. Demand for ferro silicon in India was mild this week, and prices remained range-bound as domestic steel producers awaited a new price announcement from Bhutan's smelters for the first month of the New Year, 2023.Ferrous scrap
  
  
• The Indian ferrous scrap market remained largely silent, with a negligibly small deal being struck from the Middle East. India became the second-largest ferrous scrap importer in 2022. This happened mainly because the bulk cargo which found no takers in the traditional markets, had ready buyers in India, who drove a hard bargain. The Indian market had more availability of material but fewer buyers, which kept the domestic market slow too.SteelMint's assessment for Europe-origin shredded was recorded at $447-450/t CFR levels, stable throughout the week.
  
  

Semi-finished

Indian semi-finished steel prices increase as per SteelMint's assessment. Domestic billet prices increased by INR 1,000-3,000/t across regions with a major increase of INR 2,500-3,000/t seen in Ahmedabad and Goa. Similarly, sponge iron prices also increased by INR 600-1,700/t w-o-w.

• The Chhattisgarh State Electricity Regulatory Commission (CSERC) issued a circular which showed that it is increasing variable charge adjustment (VCA) with effect from 25 December 2022. The power rate has been increased by INR 1.10/unit for all categories of consumers.
  
  
• Indian mills have resumed pig iron exports after a gap of seven months. SteelMint heard that a consignment of around 50,000 tonnes (t) of pig iron has been booked by a western India-based mill and the cargo is expected to set sail for the US in January 2023.
  
  
• SAIL-Rourkela Steel Plant (RSP) held an auction for 1,200 t of steel grade pig iron on 26 December. The entire quantity was booked at an average price of INR 39,645/t exw.
  
  

Finished longs

The Indian IF-route finished long steel market showed moderate buying tendencies throughout the week, which varied region-wise. Mills do not have too much sales pressure as of now as they have received adequate bookings. Bookings remained active in the spot market in terms of trades among suppliers and end-users which led to a hike in offers. The domestic rebar market witnessed an increase in gauge parity by INR 500/t mainly in the central (Raipur and Raigarh), eastern (Durgapur) and southern (Hyderabad) regions. Finished steel prices are likely to remain sustained in the near term due to the strengthening of semi-finished steel prices.

• On a weekly basis, In rebar steel prices sharply surged by INR 1,000-3,000/t in various regions, as per SteelMint 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 51,000-51,400/t exw-Raipur, INR 54,800-55,200/t exw-Jalna.
  
  
• Trade discounts given by Raipur-based heavy structural steel manufacturers was around INR 1,500-2,000/t and trade reference price of 200 mm angles stood at INR 56,500-57,000/t exw-Raipur.
  
  
• Trade discounts for Raipur wire rods given by resellers was around INR 600-800/t and trade reference prices at INR 50,500-50,900/t exw-Raipur and INR 50,800-51,000/t exw-Durgapur, size 5.5 mm.
  
  
• Trade level prices of BF-route rebars showed an uptrend this week across various markets on the back of strong domestic demand. However, the shortage of inventories still prevails in the distribution channel network amid mismatch between supply and demand. Furthermore, one of the leading primary mills, JSPL, announced hike in list prices of rebars by INR 1,000/t for January 2023 sales and others are likely to follow suit next week.
  
  
• SteelMint's weekly price assessment for rebars (12-32 mm, BF-route, IS 1786, Fe500D) witnessed an increase of INR 1,100/t w-o-w at INR 57,600/t, exy-Mumbai, excluding GST at 18%.
  
  

Finished flats

• Trade reference prices of flat steel products have continued increasing this week. The only product that showed a mixed response was cold rolled coil (CRC) which registered marginal drops in a few markets. Mills are eyeing an increase in list prices for January 2023 sales while market sentiments and inquiries too are improving, sources informed. JSPL has already increased HR plate and coil prices by INR 2,000/t for January sales while JSW has raised coated steel prices by INR 1,500/t earlier this week.
  
  
• On the exports front, Indian mills had withdrawn offers in the preceding week. SteelMint's HRC (SAE1006) export index for the current week stood unchanged at $597/t FOB east coast. Mills are likely to come up with fresh quotes in the coming few days, sources hinted.