Weekly round-up: Semi-finished steel prices edge down; longs market shows mixed trends

The domestic steel market saw a downward trend in prices during week 28 ( 08 July- 13 July, 2024), as semi-finished steel prices decreased by INR 100-700/tonne (t). Domestic induction furnace finished long steel offers followed mixed trends.

Iron ore and pellet

• BigMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, dropped by INR 400/t w-o-w to INR 9,150/tonne (t) DAP Raipur on 12 June. Around 40,000 t pellet (Fe62.5-63%) deals were concluded in the Raipur region. Raipur pellet producer dropped their offers by INR 200-300/t to INR 9,200-9,300/t exw at the start of the week
  
  
• BigMint's India pellet (Fe 63%, 3% Al) export index (FOB east coast) decreased by $1.5/t w-o-w to $102/t on 10 July. No trades were witnessed this week as sellers kept their offers on hold following the price fluctuation in the seaborne market. However, around 500,000 t pellet (Fe 62-63%) export deals were recorded from India in the first 10 days of July when global iron ore prices strengthened.
  
  
• NMDC had an auction for 396,000 t of iron ore on 6 July from its Kumaraswamy mines. Around 144,000 t lumps (10-40 mm, Fe 59.03-63.33%) was booked at INR 4,326-5,466/t against the base price of INR 4,066-5,036/t while buyers bid for 252,000 t fines (Fe 58.46-62.27%) which got booked at INR 3,397-4,081/t against the base price of INR 3,337-4,071/t. Prices are on ex-mines basis, including royalty, DMF and NMET.
  
  
• BigMint's weekly Indian low-grade iron ore fines (Fe 57%) export index decreased by $4/t w-o-w at $59/tonne (t) FOB east coast on 11 July 2024. An exporter concluded a deal for around 55,000 t of Fe 57% fines from the east coast at $72-73/t CFR China in this publishing window. Another 55,000 t of fines (Fe 57%) deal was heard concluded by a south India-based exporter at $74.5-75/t CFR China a couple of days back.
  
  
• Asia-Pacific Supramax dry bulk (50,000-55,000 t) freight rates for an iron ore vessel from the east coast of India to China fell by $0.71/t this week to $13.5/t on 10 July. Some movements of ships were recorded but due to a drop in bunker prices and weak market sentiment, freight rates declined in the global market.
  
  

Coal

• Australian premium hard coking coal prices fell by 2% w-o-w to $248/t FOB and $264.9/ t CNF on 12 July. Prices fell on low demand, reselling cargoes and high inventory levels.
  
  
• RB1 (6000 NAR) grade coal prices fell by 3% w-o-w at $104/t FOB. Also, RB3 prices fell to $71/t FOB Richards Bay, South Africa.
  
  
• Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port fell by INR 100/t to INR 8,100/t.
  
  

Ferros Scrap

• Throughout the week, India's imported scrap market was characterised by weak demand and persistent bid-offer disparities. Subdued finished steel sales, cost-effective domestic alternatives, and a cash flow crunch due to delayed credit payments contributed to low market activity. Steel mills, holding ample steel inventories, faced sluggish demand impacted by a lack of new project announcements and the rainy season. Indicative offers for shredded scrap from the US and UK/Europe remained at $410-415/t CFR, while buyers aimed for $400-405/t CFR. HMS (80:20) offers from West Africa and UK/Europe were assessed at $385-390/t CFR.
  
  

Ferro Alloys

• Silico Manganese: Silico manganese prices in India moved down w-o-w by INR 3,100/t ($37/t) to INR 70,000-71,000/t ($838-850/t) exw across markets (Raipur, Durgapur and Vishakhapatnam). The silico manganese market experienced weaker-than-anticipated buying activity in both domestic and export markets, hence prices declined.
  
  
• Ferro manganese: Ferro manganese (HC70%) prices decreased significantly w-o-w by INR 3,400/t ($41/t) in Raipur, reaching INR 80,000/t ($958/t) exw. Meanwhile, in Durgapur, prices dropped by INR 4,200/t ($50/t) w-o-w to INR 79,300/t ($949/t). Prices dropped on tepid demand in the domestic and global markets.
  
  
• Ferro silicon: Indian ferro silicon (FeSi:70%) prices fell w-o-w by INR 2,500/t ($30/t) settling at INR 92,500/t ($1,108/t) exw-Guwahati on 12 July. Meanwhile, Bhutan's prices fell by INR 1,400/t ($17/t), reaching INR 93,600/t ($1,121/t) exw. Prices fell as there was resistance to new offers.
  
  
• Ferro chrome: Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) prices declined by INR 1,250/t ($15/t) on 12 July, settling at INR 109,750/t ($1,314/t) exw-Jajpur.
  
  

Semi Finished

• Indian semi-finished steel prices decreased this week. Domestic billet prices in all key locations decreased by INR 100-700/t with a major decrease of INR 700/t seen in the Ramgarh market. However, sponge iron prices showed mixed trends with prices in some key locations decreasing by INR 50-500/t, with a major decrease of INR 500/t seen in the Ramgarh, Mandi Gobindgarh and Jharsuguda markets. While sponge iron prices in some key locations increased by INR 250-600/t, a major increase of INR 250-600/t was seen in the Durgapur market.
  
  
• SAIL-Rourkela Steel Plant (RSP) held an auction for 4,000 t of steel-grade pig iron on 6 July. The total quantity was booked at an average price of INR 36,450/t exw.
  
  
• Indian DRI (Direct Reduced Iron) export offers decreased by approximately $8-10/t, reaching $345/t CPT Raxaul and $357/t CPT Benapole.
  
  

Finished Long Steel

• IF-rebar:India's induction furnace route finished long steel prices saw a downward trend w-o-w. Spot trade activity was hampered due to ongoing monsoon season as construction activity were also impacted which results buyers opted wait and watch mode to procure material in lower price range levels. Such scenario compelled sellers to reduce the offers in order to escalate sales. As per the participants, prices is likely to remain volatile in the near-term.
  
  
  

• On a weekly basis, in rebar steel prices witnessed declined by upto INR 1,300/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 42,100-42,500/t exw Raipur, INR 46,000-46,600/t exw Jalna.
  
  
  

• Trade reference price of heavy structural steel for base size 150mm channel stands at INR 45,700-46,000/t exw Raipur.
  
  
  

• Trade reference prices of wire rod hovering at INR 43,300-43,800/t ex Raipur.
  
  
  
• BF-rebar: Trade-level blast furnace (BF) rebar prices continued to show a downward trend; prices fell by INR 800-1,200/t during the week amid dull buying activity in the domestic market. This weighed on market sentiments. Buyers are cautious about procuring material amid continuous fall in prices.
  
  
• This week rebar prices (12-32mm) in the trade segment dropped INR 900/t w-o-w to INR 54,300/t exy-Mumbai. Prices are exclusive of GST at 18%.
  
  
• In the projects segment, prices were hovering around INR 52,500-53,500/t FOR Mumbai. Demand from end-users was mainly for fulfilling urgent requirements.
  
  

Finished flat steel

• Hot-rolled coil (HRC) prices declined to settle at INR 52,500-55,100/t. Cold-rolled (CR) coil prices exhibited a degree of stability, maintaining a range of INR 57,500-63,400/t across markets.

  The traders' market exhibited sluggishness primarily attributed to subdued demand at prevailing price levels and the influx of cost-effective imports
  
  

• According to vessel line-up data monitored by BigMint, India imported a total of 121,747 t of bulk HRC and plates till 8 July, with cumulative imports reaching 430,835 t by June 2024. According to vessel line-up data compiled by BigMint, an estimated additional 1,26,417 t is expected to arrive by end-July.

  A deal was heard concluded for 75,000 t of HRC at $562-565/t CFR from Vietnam for September shipment.

  India exported 45,459 t of bulk HRC and plates till 8 July, with total exports for June reaching 95,732 t.
  
  

• Indian steel mills have commenced offering HRC for exports to Europe, specifically grade S275 with a thickness of 3mm. However, Indian HRC exports to Southeast Asia and the Middle East are on hold. This follows a price cut by Baosteel (China's top producer) for August HRC sales, while Vietnamese mills held steady on pricing.