Weekly round-up: Semi-finished steel prices continue to edge down on soft demand

The domestic steel market saw seesaw trend in prices during week 52 ( 25-30 Dec, 2023). Semi-finished steel prices decreased in the range of INR 100-1,000/tonne (t).

Iron ore and pellets

• SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, decreased by INR 100/t w-o-w to INR 10,100/tonne (t) DAP Raipur on 29 December, 2023. No deals were recorded from the Raipur region in the last one week. The bids were lower around INR 500/t against the pellet makers' offers.
  
  
• KSMCL sold 88,000 t of fines (Fe 62.48%) and 40,000 t of lumps (10-40 mm, Fe 62.18- 63.62%) at INR 5,155-5,165/t and INR 5,207-5,762/t in the auction against the base price of INR 4,345/t and INR 4,497- 4,602/t. SMIORE sold 45,000 t of lumps (5-40 mm, Fe 58- 60.80%) in the auction at INR 4,270-6,970/t against the base price of INR 4,270-5,200/t. KSMCL's price excludes taxes while SMIORE includes.
  
  
• SteelMint's weekly Indian low-grade iron ore fines (Fe 57%) export index increased by $1/tonne (t) w-o-w to $93/t FOB east coast on 28 December, 2023. The iron ore export index recorded around 2.5 year-high, previously; it was seen in the first half of June 2021. No deals of standard Fe57% fines were recorded for export from the East Coast in this publishing window. However, total deals of 340,000 t fines (Fe54-57%) were recorded from eastern and southern India in the last one week for exports.
  
  
• SteelMint's India pellet (Fe 63%, 3% Al) export (FOB east coast) index increased by $5/t w-o-w to $131/t on 27 December 2023. In this publishing window, One export deal of 55,000 t raw pellets (Fe 63%) from eastern India was concluded at $145/t CFR China last week. A South India-based pellet maker had floated an export tender for 50,000 t of material (Fe 63%; Al2O3- less than 2%) on 29 Dec'23. As per sources, the tender was heard concluded at around $137-138/t FOB.
  
  

Coal

• Australian premium hard coking coal prices remained stable w-o-w to $324/t FOB and $341/ t CNF on 30 Dec'23 on low buying interest.
  
  
• RB1 (6000 NAR) grade prices remained largely stable w-o-w to $101.25/t FOB. Similarly, RB3 prices remained unchanged w-o-w at $76/t FOB Richards Bay, South Africa.
  
  
• Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port recorded at INR 8,200/t, down by INR 200/t w-o-w
  
  

Ferro Scrap

• During the week in India, no firm offers or bids for imported scrap were observed as suppliers were absent due to the Christmas and New Year holidays. Additionally, buyers exercised caution due to disparities in prices and the availability of previously booked materials at lower costs. The latest indicative offers for shredded scrap from Europe were assessed at $405-410/t CFR Nhava Sheva, and HMS (80:20) scraps were priced at $385-395/t CFR.
  
  

Ferro Alloys

• Silico Manganese: As domestic steel demand fell, Indian silico manganese prices fell by INR 700/t ($8/t). For the time being, India's exports have ceased, and trading has been limited to the domestic market, causing prices to fall. Based on current market conditions, SteelMint believes that prices will remain in this range only in the short term. Meanwhile, the domestic billet index was INR 39,150/t ($470/t) ex-Raipur, down INR 650/t ($8/t). Indian silico manganese (60-14) was trading at about INR 64,100-64,800/t ($770-$778/t) exw Durgapur, Raipur, and Vizag on December 29, 2023.
  
  
• Ferro Manganese: Prices of ferro manganese (HC70%) remained firm this week because of the moderate demand of mild steel. The traders were also vigilant while making deals and trades. According to SteelMint, ferro manganese offers in Durgapur and Raipur on 29 December were INR 64,100- INR 64,500/t ($770-$775/t) exw.
  
  
• Ferro Silicon: Prices of Indian ferro silicon (FeSi:70%) remained sturdy with a minor drop by INR 100/t ($1/t). Every month end brings a similar pattern in ferro silicon prices with minor changes. This week the trades stayed firm as the traders waited for upcoming price announcements which resulted in prices to remain stable. According to SteelMint, prices of ferro silicon in India on 29 December were at INR 101,700/t ($1,222/t) exw-Guwahati.
  
  
• Ferro Chrome: On 29 December, prices of Indian ferro chrome (HC 60%, Si:4%) boosts by INR 1,100/t ($ 13/t) w-o-w to INR 111,000/t ($1,333/t) exw-Jajpur. The prices swinged up because there was a shortage of material in the market and a significant number of inquiries led the prices to wave up. However, Stainless steel prices for 304 dropped by INR 3,000/t ($36/t) w-o-w to stand at INR 175,000/t ($2,102/t) exw-Mumbai. The market was slow due to little purchasing activity.
  
  

Semi-Finished

• Indian semi-finished steel prices decreases as per SteelMint's assessment. Domestic billet prices decreased by INR 100-1,000/t across regions, with a major decrease of INR 1,000/t seen in Chennai. Similarly, sponge iron prices also decreased by INR 100-900/t, with a major decrease of INR 850-900/t seen in the southern region (Bellary and Hyderabad).
  
  
• SAIL-Durgapur Steel Plant held an auction for 2,000 t of steel-grade pig iron on 29 Dec'23. 1,400 t quantity was booked at an average price of INR 37,100/t exw.
  
  
• NMDC's steel plant in Nagarnar, Chhattisgarh, conducted a steel-grade pig iron auction for a total of 25,000 t on 27 Dec'23. 23,500 t quantity was booked at an average price of INR 35,000/t.
  
  
• Indian DRI (Direct Reduced Iron) exports offers decreased by approximately $7-8/t, reaching $373/t on CPT Raxaul, and $382/t on CPT Benapole.
  
  

Finished-long steel

• IF-route rebar:India's induction furnace route finished long steel market witnesses a moderate trading activities in this week in rebar, wire rod and structural steel. Fluctuations in sponge iron and steel billet prices and uncertainty in market turns buyers to cautiously procure the material and avoid losses. Liquidity issue and rising inventories in the mills pressurized manufacturers either to decline the offer prices or adjust trade discounts to liquidate the material.
  
  
• On a weekly basis, in rebar steel prices decreased in the range of INR 200-1,000/t across the regions, 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 42,800-43,200/t exw Raipur, INR 47,500-48,000/t exw Jalna.
  
  
• Trade reference price of heavy structural steel for base size 150mm channel stands at INR 45,800-46,200/t exw Raipur.
  
  
• Trade reference prices of wire rod hovering at INR 43,400-43,800/t ex Raipur.
  
  
• BF-route rebar: Trade-level prices of blast furnace (BF) route rebars fell on weekly basis amid sluggish demand across major markets, marking the 12th consecutive week of price decline and currently hovering at 4-month low as similar levels were last observed in end-August 2023. SteelMint's weekly price assessment for rebars (12-32 mm, BF-route, IS 1786, Fe500D) for the trade segment fell by INR 800/t to INR 52,500/t, exy-Mumbai, excluding GST at 18%.
  
  
• In the projects segment, prices are currently hovering at INR 50,500-51,000/t on FOR Mumbai basis. Demand from end users was on need-basis only as they postponed bulk purchase decisions considering decline in prices.
  
  

Finished flate steel

• Trade-level hot-rolled coil (HRC) and cold-rolled coil (CRC) prices remained rangebound in the markets under assesments this weak. The benchmark assessment (bi-weekly) for HRC (IS2062, Gr-E250, 2.5-8mm) stood at 54,500-55,500/t exy-Mumbai while those of CRC (IS513, Gr-O, 0.9mm) ranged between INR 62,000-63,000/t exy-Mumbai as of 29 December 2023. Factors such as subdued trading, and cheaper imported and domestic alternatives kept the prices less volatile. The counter force to the above factors was mills focusing more on B2C sales amid lackluster spot market demand.
  
  
• Also, the spot market remained devoid of participants- both buyers and sellers amid the Chrismas and New Year holiday mood during the week under review.
  
  
• The week-over-week analysis for HRC exports showed no change for the offers in the European Union region. The offers for HRC (3mm+, S275) were unchanged at approximately $690-700/t CFR Antwerp, EU.
  
  
• Meanwhile, Indian steel mills have concluded an export deal in the Middle East market recently. Around 20,000t HRC was booked for delivery in February 2024, at around $635-640/t CFR ME.
  
  
• It can be recalled that mills had opted to curtail HRC exports to Southeast Asia and the Middle East since 19 September, citing diminished profitability and the competitive pricing strategies adopted by Chinese counterparts.