Weekly round-up: Semi-finished, rebar prices show mixed trends

The domestic steel market saw a see-sawing price trend during week 50 (11-16 December, 2023). Semi-finished steel prices varied in the range of INR 50-200 tonne (t).

Iron ore and pellets

• SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, sharply increased by INR 500/t w-o-w to INR 10,100/t DAP Raipur on 15 December, 2023. Deals of 50,000 t were recorded in the last one week. Recently, the pellet plants hiked their raw pellet offers by up to INR 300/t supported by the export deals concluded in the last 10-15 days. The raw pellet prices also supported increased sponge and finished steel prices in the regions.
  
  
• NMDC had an auction for 30,000 t of pellets (6-16 mm, Fe 63%) from its Donimalai pellet plant in Karnataka's Bellary on 6 December. According to sources, the entire quantity of pellets got booked at INR 9,610/t against the base price of INR 9,600/t. Prices are on FOR basis and exclusive of all taxes.
  
  
• SteelMint's weekly Indian low-grade iron ore fines (Fe 57%) export index increased by $3/t w-o-w to $87/t FOB east coast on 14 December, 2023. Total deals of 165,000 t (Fe56/57%) were recorded from the east coast. However, a trader from Odisha concluded an 80,000-t deal for Fe 57% grade iron ore fines recently from the west coast of India.
  
  
• SteelMint's India pellet (Fe 63%, 3% Al) export (FOB east coast) index increased by $2/t w-o-w to $128/t on 13 December, 2023. Total deals of 220,000 t of raw pellets were recorded in this publishing window. Eastern and central India-based pellet manufacturers concluded deals on better realisation amid decent hike in global spot iron ore offers w-o-w.
  
  

Coal

• Australian premium hard coking coal prices dropped 4% w-o-w to $320/t FOB and $337/ t CNF on 16 December amid low buying interest.
  
  
• RB1 (6000 NAR) grade prices dropped by 7% to $101/t FOB. Similarly, RB3 prices dropped by 7% w-o-w to $76/t FOB Richards Bay, South Africa.
  
  
• Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port were recorded at INR 8,400/t, down INR 100/t w-o-w.
  
  

Ferrous scrap

• In the Indian market this week, there was a noticeable disinterest among buyers in booking imported scrap. This lack of enthusiasm can be attributed to the presence of cost-effective alternatives within the domestic market and the fact that buyers already possess substantial stocks that are expected to last until mid-January. Additionally, the arrival of previously booked materials, secured at lower prices compared to current levels, has further contributed to buyers adopting a cautious stance and refraining from active participation in new bookings.
  
  
• A trader said: "The Indian market is relatively quiet, with buyers holding substantial inventory, leading to a limited number of inquiries. Additionally, there is a preference among buyers for materials that were booked earlier and are currently arriving."
  
  
• Notably, only 250 t of shredded scraps were heard booked from the UK at around $410/t CFR west coast and around 1,200-1,300 t of HMS (80:20) were booked from the UK and West Africa at $394-415/t CFR. Additionally, 500 t of CR busheling scraps were booked from Germany at $440/t CFR and 1,000 t of bonus scraps were sealed at $415/t CFR from the US.
  
  
• The average weekly offers for shredded scrap from Europe edged up by $8/t to $425/t CFR in comparison with $417/t CFR a week ago. HMS (80:20) offers also rose by $8/t w-o-w to $404/t CFR. Notably, offers started falling since mid-week.
  
  
• In November 2023, India's scrap imports totalled 1.12 mnt, marking a 13% increase compared to the 0.99 mnt recorded in October 2023, as per SteelMint data.
  
  

Ferro alloys

• Silico manganese: As of 15 December, 2023, Indian silico manganese (60-14) prices increased by INR 700/t w-o-w, trading at around INR 63,000-64,000/t exw-Durgapur, Raipur, and Vizag. Production cuts and a rise in steel prices caused sellers to raise silico manganese prices.
  
  
• Ferro manganese: Prices of ferro manganese (HC70%) increased by INR 700/t this week as there were supply constraints in the market this week. According to SteelMint, ferro manganese offers in Durgapur and Raipur on 15 December were at INR 63,500/t exw.
  
  
• Ferro silicon: Prices of Indian ferro silicon (FeSi:70%) inched up by INR 150/t this week as demand and trades remained firm. According to SteelMint, prices of ferro silicon in India on 15 December hovered at INR 101,850/t exw-Guwahati.
  
  
• Ferro chrome: On 15 December, prices of Indian ferro chrome (HC 60%, Si:4%) rose by INR 1,700/t w-ow to INR 107,300/t exw-Jajpur. The gap between bids and offers improved, but the market primarily witnessed need-based purchasing. Most market participants were in a wait-and-watch mode, anticipating the results of FACOR's ferro chrome and OMC's chrome ore auction for clearer insights into prices.
  
  

Semi-finished

• Indian semi-finished steel prices showed mixed trends as per SteelMint's assessment. Domestic billet prices decreased by INR 50-200/t in some regions, while prices in other regions rose by INR 50-1,500/t, with a major increase of INR 1,500/t seen in Goa. Similarly, sponge iron prices also showed mixed trends, decreasing in some regions by INR 50-250/t, while prices in other regions rose by INR 100-600/t, with a major increase of INR 600/t seen in Mandi Gobindgarh.
  
  
• SAIL-Bhilai Steel Plant (BSP) held an auction for 2,990 t of steel-grade pig iron on 15 December. According to sources, the entire quantity was booked at an average price of INR 36,250/t exw.
  
  
• Tata Metaliks has announced a price increase of INR 500/t ($6/t) in pig iron (both basic and foundry grades) due to demand increases at previous offers.
  
  
• Indian DRI export offers remained stable at $372/t CPT Raxaul, and $382/t CPT Benapole.
  
  

Finished long steel

• (IF route): India's induction furnace-route finished long steel prices witnessed a mix trend this week. Enquiries and transaction in the spot market remained need-based. Traders hesitated to procure the materials while manufacturers are observing slow lifting of previously booked orders which ultimately led to an increase in inventories at mills. As per booking and lifting of materials manufacturers have adjusted their prices accordingly. Such scenario of delay in decision of bulk purchase dampened the market sentiments and prices are likely to remain volatile in the near term.
  
  
• On a weekly basis, rebar prices fluctuated in the range of INR 200-700/t across regions but remained stable in a few other markets, as per SteelMint's assessment.
  
  
• The trade reference price of Fe 500 grade rebar of 10-25 mm, manufactured via the IF route, was assessed at INR 43,700-44,100/t exw-Raipur, and at INR 48,900-49,400/t exw-Jalna.
  
  
• Trade reference prices of heavy structural steel of base size 150mm stood at INR 46,800-47,000/t exw-Raipur.
  
  
• Trade reference prices of wire rods hovered at INR 44,500-44,900/t ex-Raipur.
  
  
• BF-route rebar: Trade-level blast furnace (BF) rebar prices continued to slide downwards on weekly basis amid sluggish demand in the distribution network across major markets. SteelMint's weekly price assessment for rebars (12-32 mm, BF-route, IS 1786, Fe500D) in the trade segment fell by INR 800/t to INR 53,800/t, exy-Mumbai, excluding GST at 18%.
  
  
• In the projects segment, prices are currently hovering at INR 52,000-53,000/t on FOR Mumbai basis. Demand from end-users remained on need-basis only amid declining prices and buyers postponed their purchase decisions, waiting for prices to stabilize.
  
  

Finished flate steel

• Trade-level prices of hot-rolled (HR) and cold-rolled (CR) coils remained flat in most markets under assessment. The availability of competitively priced imported material made buyers take calculated risks. This, in turn, weighed on the market. Moreover, cheaper domestic alternatives are also available, hinted a few industry sources. These factors collectively weighing on the trade prices, while distributors are in a tug-of-war between the buyer's and mill's idea of tradable price tags.
  
  
• Imports of HRCs and plates are on the decline, with December volumes being recorded at 2,35,730 t (provisional), as per the vessel line-up data tracked by SteelMint. No new import bookings were reported in the past two weeks.
  
  
• Indian mills have kept hot-rolled coil (HRC) export offers stable at around $700-705/t CFR Antwerp for the European Union (EU). However, they are still refraining from quoting any offers to the Southeast Asian and Middle East (ME) markets, amid comparatively good domestic realisations.