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

• Billet down INR 100-600/t except in Bhavnagar
  
  
• Rebar tags fall INR 100-800/t in most locations
  
  

This week, semi-finished steel prices edged down on tepid demand. Domestic induction furnace (IF) finished long steel offers trended down by INR 100-800/t w-o-w. Meanwhile, trade reference prices for hot-rolled coils (HRCs) and cold-rolled coils (CRCs) fell by INR 200/t w-o-w.

Iron ore, pellet

• BigMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, inched up by INR 100/t w-o-w to INR 9,050/tonne (t) DAP Raipur on 13 December. Raipur-based pellet makers kept offers stable for Fe 63% (+/-0.5%) pellets at INR 8,900-9,000/t ($105-106/t) exw. Godawari Power and Ispat opened pellet offers for Fe63.5% and Fe65.5% at INR 9,100/t ($107/t) and INR 10,300/t ($121/t) exw, respectively. Deals of around 150,000 t of pellets were concluded in Raipur this week.
  
  
• Gujarat-based steel mills booked around 50,000 t of raw pellets (Fe63%, 6.5-8% Al2O3+SiO2) at INR 9,700-9,800/t ($114-115/t) FOB last week from a southern India-based producer, sources informed BigMint. Notably, due to lower export realisations, major pellet suppliers are diverting material to the domestic market, which is seeing decent trades.
  
  
• BigMint's bi-weekly Indian low-grade iron ore fines (Fe 57%) export index increased by $1/t w-o-w to $67/t FOB east coast, India, on 12 December 2024. The Indian iron ore export market witnessed robust activity this week, supported by multiple deals for January delivery. Overseas buyers, particularly from China, have shown strong interest in Indian fines ahead of the Chinese New Year holidays. Deals for around 300,000 t of iron ore fines (Fe55-57%) were concluded from the east coast this week.
  
  
• BigMint's India pellet (Fe 63%, 3% Al) export index (FOB east coast) remained unchanged w-o-w at $101.5/t on 13 December.
  
  

Coal

• BigMint's fortnightly coking coal index rose in recent deals. Australian coking coal prices rose by $6/t amid a pick-up in demand in key markets.
  
  
• Indexed prices of RB2 (5500 NAR) grade remained unchanged w-o-w at $89/t FOB South Africa.
  
  
• India's portside prices of RB2 (5500 NAR) fell slightly by INR 50-100/t to INR 9,450/t. However, RB3 (4800 NAR) rose by around INR 200/t to INR 7,850/t ex-Gangavaram, driven by tight stock availability and limited imports.
  
  

Ferrous scrap

• India's imported scrap market saw subdued activity throughout the week due to weak domestic steel demand, ample inventories, and expectations of further price drops. Early inquiries, spurred by expectations of potential steel import duties, briefly hinted at improved sentiment but were overshadowed by sluggish finished steel sales and liquidity constraints.
  
  
• Offers for shredded hovered at $380/t CFR Nhava Sheva (up by $2/t w-o-w), while HMS (80:20) was offered at $360/t CFR (up by $3/t w-o-w). Steel mills slashed December rebar list prices, indicating challenging market conditions, while buyers were reluctant to commit to significant purchases, expecting further declines.
  
  
• Global factors, such as Turkiye's low scrap prices and moderate policy easing in China, had minimal impact on the Indian market. A cautious sentiment lingered, with hopes pinned on safeguard measures and infrastructure projects to support recovery in 2025.
  
  
• Approximately 6,000-7,000 t of scrap were booked, including 3,000-3,500 t of shredded from Australia and the US at $370-380/t; HMS from South Africa, West Africa, and the UK at $365-375/t; and PNS from Venezuela at $390/t.
  
  

Ferro alloys

• Silico manganese: Domestic silico manganese prices inched up w-o-w amid news of potential production shutdowns in key producing regions. Prices of the 60-14 grade edged up by INR 500/t ($6/t) w-o-w to INR 64,900-66,000/t ($765-778/t) exw in Raipur, Durgapur, and Visakhapatnam.
  
  
• Ferro manganese: Indian ferro manganese (HC70%) prices inched down by around INR 350/t ($4/t) w-o-w to INR 66,550/t ($785/t) exw in Raipur and by INR 500/t ($6/t) to INR 66,500/t ($784/t) exw in Durgapur. Prices edged lower due to resistance to higher offers quoted and weak demand in the export market, leading to a lack of acceptance towards elevated pricing.
  
  
• Ferro silicon: Indian ferro silicon (FeSi: 70%) prices dipped by INR 1,300/t ($15/t) w-o-w to INR 102,800/t ($1,212/t) exw-Guwahati on 13 December. Bhutan's prices also edged down by INR 500/t ($6/t) to INR 103,500/t ($1,220/t) exw. Prices fell amid bid-offer disparities during negotiations between sellers and buyers, majorly in northeastern India.
  
  
• Ferro chrome: Indian high-carbon ferro chrome (HC60%, Si: 4%) prices were largely stable with a slight decline of INR 100/t ($1/t) to INR 105,500/t ($1,244/t) exw-Jajpur. Prices held steady, as market players adjusted their approach - most sellers did not make offers, and buyers engaged in need-based procurement.
  
  

Semi finished

• Indian semi-finished steel prices showed mostly negative movements, as per BigMint's assessment. Domestic billet prices in almost all key locations decreased by INR 100-600/t w-o-w, with the steepest decline of INR 600/t seen in the Jalna market, while Bhavnagar saw a rise of INR 300/t. Similarly, sponge iron prices also exhibited largely negative trends, decreasing by INR 100-1,000/t w-o-w, with the sharpest drop of INR 1,000/t recorded in the Ramgarh market. However, the Jharsuguda cluster witnessed an uptick of INR 100/t this week.
  
  
• Indian direct reduced iron (DRI) export offers stood at $340/t CPT Raxaul and $350/t CPT Benapole, reflecting declines of $6/t w-o-w.
  
  

Finished long steel

• IF route: India's IF route finished long steel prices were down w-o-w. Limited trading activities were witnessed in the market, although the degree varied regionally. Buying interest remained subdued, owing to a lack of clarity on market trends. Although sellers offered attractive discounts to liquidate material, buyers opted for need-based procurement. Considerable selling pressure was witnessed this week, with huge stocks at mills, which varied regionally.
  
  
• On a w-o-w basis, rebar prices declined by INR 100-800/t across regions, except for in the Mumbai market, where prices inched up by INR 200/t, as per BigMint's assessment.
  
  
• Trade reference prices of Fe 500 grade rebars manufactured via the IF route for the 10-25 mm size were assessed at INR 41,400-41,800/t exw-Raipur and INR 46,700-47,300/t exw-Jalna.
  
  
• The trade reference price of heavy structural steel for the base size 150 mm channel stood at INR 43,800-44,200/t exw-Raipur.
  
  
• Trade reference prices of wire rods hovered at INR 42,000-42,500/t ex-Raipur.
  
  
• BF-rebar: Trade-level blast furnace (BF) rebar prices dropped w-o-w amid lacklusture demand. Market sentiments were subdued, impacted by a liquidity crunch. Rebar prices (12-32 mm) in the trade segment stood at INR 53,000/t exy-Mumbai, excluding 18% GST, reflecting a fall of INR 800/t w-o-w.
  
  
• In the project segment, prices fell w-o-w to INR 51,000-52,000/t FOR Mumbai amid limited buying inquiries.
  
  

Flat steel

• Trade-level domestic finished flat steel prices continued to feel the pressure of low buying interest. BigMint's bi-weekly assessed exy-Mumbai prices of HRC and CRC showed a nominal drop of INR 200/t w-o-w.
  
  
• Meanwhile, weekly assessed exy-Mumbai prices of galvanised plates (GPs) fell INR 400/t w-o-w. Some distributor sources said that the demand for pre-painted galvanised iron (PPGI) was better than that for GPs, which restricted the decline to a mere INR 200/t w-o-w.
  
  
• India's cumulative HRC import volume, based on BigMint's bulk vessel line-up data, stood at 56,830 t till 9 December 2024. Around 189,115 t are likely to arrive later in the month.
  
  
• BigMint's India HRC export index stood unchanged w-o-w at $535/t FOB east coast this week.
  
  
• Export offers to Europe for the HRC S275 grade, 3 mm thickness, remained unchanged at $585-595/t CFR Antwerp ($535-545/t FOB east coast India) for the second week in a row.
  
  
• An export deal for around 10,000 t Indian-origin hot-dipped galvanised iron (HDGI) was heard concluded at $810/t CFR EU for January 2025 shipment.
  
  
• Market participants stated that cheaper Chinese alternatives and the proposal of a 25% steel import duty by the government might slow down export and import activities in the near term.