Weekly round-up: Semi-finished steel prices edge up even as flat steel offers decline

The domestic steel market saw an upward trend in prices during week 49 ( 28 Nov- 3 December, 2022). Semi-finished steel prices increased in the range of INR 100-2,200/tonne (t).

Domestic induction furnace finished long steel offers witnessed positive trends, rising by INR 300-2,100/t w-o-w. Trade reference prices for finished flats, however, declined in the range of INR 100-1,000/t.

Iron ore and pellets

• SteelMint's bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 8,400/tonne (t), down by INR 100/t compared to the last assessment on 29 November. Around 8,000 t of deals were reported in this current publishing window. Trade activities continue to remain limited on subdued deals in the sponge iron segment seen yesterday.
  
  
• State-owned Industrial Development Corporation of Odisha Ltd (IDCOL) had scheduled an auction on 30 Nov'22 for sale of iron ore from its Roida 'C' iron and manganese mine in Keonjhar, Odisha. According to market sources, 68,000 t of fines (Fe58-60%) were booked out of 99,635 t at the base price of INR 2,500/t ex-mines. Meanwhile, the lumps lot (5-18mm, Fe62-65%) remained unsold. Prices include royalty, DMF and NMET.
  
  
• India's pellet export trade has improved following the export duty withdrawal by the Indian government last week. SteelMint's India pellet (Fe 63%, 3% Al) export index, FOB east coast, was recorded at $103/t, up by $2/t w-o-w. Deals of around 160,000 t pellets were recorded this week.
  
  
• India's largest merchant iron ore mining company, NMDC, has increased list prices of iron ore recently, SteelMint learnt from reliable sources. The company has raised prices of lump ores by up to INR 300-360/t and fines by INR 300/t, with effect from 30 Nov'22.
  
  

Coal

• Australian hard coking coal prices remained largely unchanged at $248/t FOB and $264/t CNF India. The prices remained stable due to muted demand from global market participants.
  
  
• Portside RB3 (4800 kcal/kg NAR) grade coal prices remained largely unchanged at INR 13,000/t ex-Vizag amid small parcel bookings by sponge iron manufacturers.
  
  
• High-CV RB1 (6000 kcal/kg NAR) grade coal prices rose by $13/t to $252/t FOB amid positive demand sentiments from Europe.
  
  

Ferrous Scrap

• This week Indian ferrous scrap market saw very limited work from the trade point of view, as buyers are silent amid weak demand from end-users. Bid offers disparity opposed deals to happen in the market. High offer prices are supposed to be Just the impact of the steel export duty exemption, so it may be a temporary hike. In contrast, the Indian scrap market is supposed to receive eight vessels at various ports across the country. Arrival of bulk vessels slows down the fresh container bookings.
  
  
• Furthermore, the active Turkish buying has boost imported scrap prices this week. Trade with neighboring countries like Pakistan has improved as prices have started moving up.
  
  
• SteelMint's assessment of Europe-origin shredded scrap offers into India were at $433/t CFR Nhava Sheva, down $18/t w-o-w.
  
  

Ferro Alloys

• In SteelMint's assessment on 2 December 2022, Indian silico manganese prices were marginal drop on a weekly basis to INR 72,700/t ex-Durgapur, INR 71,900/t ex-Vizag, and INR 73,000/t ex-Raipur. Amid weak demand in the domestic steel market during the period, resulted in price drop of silico manganese prices.
  
  
• As on 2 December, Indian ferro manganese prices were almost stable w-o-w to INR 74,700/t ex-Durgapur and ex-Raipur at INR 75,000/t. Ferromanganese prices remained constant as long as special steel demand remained subdued.
  
  
• Indian ferro chrome prices were hovering at around INR 96,500/t exw-Jajpur, dropped by INR 1,800/t w-o-w due to limited demand from the exports and domestic markets as assessed on 1 December. Buyers were delaying purchases because they expected further price drops in line with Chinese stainless-steel tenders.
  
  
• According to SteelMint's assessment on 2 December, Guwahati-based producers were offering around INR 122,500/t exw, while Bhutan's offers remained unchanged w-o-w due to weak demand, as there was a minor pause in enquiries during the month-end and market participants were waiting for the Bhutanese plants to release their new offers.
  
  

Semi finished

• Indian semi-finished steel prices increased, as per SteelMint assessment. Domestic billet prices increased by INR 500-2,200/t across regions, with a major increase of INR 700/t seen in Ahmedabad. Similarly, sponge iron prices also increased by INR 100-1,400/t w-o-w. Sponge iron demand remains active from Nepal and Bangladesh, as nearly 25,000 t of deals were confirmed this week, including lump ore and pellet-based DRI.
  
  
• SAIL-BSP conducted an auction for 10,700 t (60 kg and 52 kg) of full-length commercial rails on 28 Nov'22 from Bhilai-Chhattisgarh. Buyers showed weak response due to higher base price.
  
  
• SAIL-Rourkela Steel Plant held an auction for 4,500 t of steel grade pig iron on 1 Dec'22. The entire quantity was booked at an average price of INR 38,650/t exw.
  
  
• Sponge iron export price assessment up by $10-15/t, w-o-w, to $415-420/t CPT Nepal, (FeM 80%, lumps 70%, fines 30%). About 12,000 t of deals were concluded this week.
  
  
• Nepal's purchase remains active from India as few parcels sold this week for billet ans wire rods. Current offers hovering at $520-525/t exw Durgapur. While, wire rod offers hover at $575-580/t exw-Durgapur (eastern India) basis. The freight costs to Nepal stand at $20-25/t.
  
  
• BF-route billets offer is floated at $555-560/t and offers for wire rods (SAE 1008) stand at around $610/t LTW-eastern India. The freight costs to Nepal are at $15-18/t.
  
  
• Indian steel grade pig iron offers rose by INR 500-1,200/t, w-o-w, on account of surge in steel prices.
  
  

Finished Longs

India's finished long steel market from the induction furnace route observed a moderate buying enquiries throughout the week vary across the regions. A slight recovery were seen in the beginning of week on account of surge in steel billet prices specifically in north region. Market were trying to stabilize and increased in terms of trades in the spot market as compared to last week whether it was in rebar, structure and wire rod steel. Although due to lacking of healthy momentum, manufactures preferred adjusted offers or given trade discounts depending upon payment and delivery terms. Prices may remain volatile until demand for finished steel improves, sources informed SteelMint.

• On a weekly basis, In rebar steel prices sharply increased by INR 300-2,100/t across the region, 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 46,600-47,000/t exw Raipur, INR 51,300-51,700/t exw Jalna.
  
  
• Trade discount given by Raipur- based heavy structural steel manufacturers is stood by up to INR 2,000/t and trade reference price of 200 mm angles stood at INR 53,000-53,400/t exw Raipur.
  
  
• Trade discount given by Raipur- based steel wire rod traders is over INR 1,000/t and trade reference price at INR 46,300-46,800/t exw Raipur and INR 46,500-46,900/t exw Durgapur, size 5.5 mm.
  
  
• BF route rebar prices continued to follow downward trend this week with limited buying interest as buyers have adopted wait and watch mode awaiting price announcements from primary mills. However, there was some improvement in trade activities in the north provinces on the back of easing restrictions on construction activities. Moreover, IF route rebar prices fluctuated over the week due to volatility in semi-finished steel prices.
  
  
• Current week's assessment for rebars (12-32 mm, BF-route, IS 1786, Fe500D) fell w-o-w by INR 500/t to INR 55,000-56,000/t, exy-Mumbai, excluding GST at 18%.
  
  

Finished Flats

• Trade level prices of finished flat steel products continued to remain under pressure this week following the slow trade activities. Market activities remained slow as end-buyers stayed on sidelines awaiting mills to make the December sales price announcement. "Mills are likely to make their official price announcement by upcoming Monday," sources informed.
  
  
• Exports from India have resumed post the removal of 15% export duty effective 19 November 2022. Some deals were heard closed in the past few days for December and early-January delivery. For instance, 15,000-20,000 t HRC (S235) was booked for UAE at $610/t CFR. Also, 25,000-30,000 t of CRCs were also booked for Europe around $665-670/t CFR.
  
  
• SteelMint's India HRC export index opened higher by $27/t at $545/t FOB east coast India.