Weekly round-up: Semi-finished steel prices edge up on active uptick in steel demand

The domestic steel market saw a positive trend in prices during week 26 ( 24 June- 29 June, 2024), as semi-finished steel prices varied by INR 200-1,000/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, fell by INR 250/t w-o-w to INR 9,600/tonne (t) DAP Raipur on 28 June. Around 83,000 t pellet (Fe62.5-63%) deals were concluded in the Raipur region. Pellet prices in Raipur dropped by around INR 400-500/t this weekend. Buyers booked decent material at the dropped offers. Bigmint recorded around 235,000 t pellet deals in the across India domestic region last week.
  
  
• NMDC had an auction for 204,000 t of iron ore on 24 June from its Kumaraswamy mines. Around 108,000 t lumps (10-40 mm, Fe 60.86-63.79%) got booked at INR 4,919-5,929/t against the base price of INR 4,909-5,629/t. While 96,000 t fines (Fe 62.78-63.57%) got booked at INR 4,667-5,105/t against the base price of INR 4,647-4,815/t. Prices are on ex-mines basis, including royalty, DMF and NMET.
  
  
• Around 80,000 t of low-grade iron ore fines (Fe 57%) deals were concluded recently from Odisha, as per sources. Deals were heard concluded at around INR 2,600-3,300/t ex-mines, including taxes. Prices have witnessed a drop in the region after a decline in bid prices in OMC's iron ore auction.
  
  
• BigMint's India pellet (Fe 63%, 3% Al) export index (FOB east coast) inched up by $0.5/t w-o-w to $97/t on 26 June 2024. An eastern India-based pellet producer concluded last week an export deal for 55,000 t of pellets (Fe63%, 8% SiO2+ Al2O3) at around $115/t CFR China for July, 2024 shipment.
  
  
• 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 inched down by $ 0.2/t this week to $13.9/t on 26 June, as per BigMint's assessment. A lack of iron ore cargoes and sluggish seaborne coal trading contributed to this downtrend, with a particularly thin cargo list in the Pacific region.
  
  

Coal

• Australian premium hard coking coal prices fell by 2% w-o-w to $234/t FOB and $250.9/ t CNF on 28th June'24. The prices fell on ample cargoe supplies from Australia and comparatively slow and stable demand
  
  
• RB1 (6000 NAR) grade prices remained stable w-o-w at $108/t FOB. Also, RB3 prices unchanged at $78/t FOB Richards Bay, South Africa.
  
  
• Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port inched down to INR 8,200/t.
  
  

Ferro Scrap

• This week, demand for imported scrap in India remained weak due to an unsupportive steel market and the availability of alternative metallics. Despite firm offers from suppliers, workable levels for US and UK/European shredded scrap softened to $410-414/t CFR Nhava Sheva, while HMS (80:20) from UK/Europe and West Africa was at $385-389/t CFR, with buyers quoting around $400-404/t.
  
  
• The upcoming rainy season in major Indian regions is also expected to impact scrap buying in the near term.

  A trade source noted that high freight rates, along with pellet and sponge offers, are capping imported scrap rates, leading to a likely decrease in import volumes through containers. Some volume is expected to shift to bulk shipments, pellets, or lump sponge alternatives.
  
  

• Recent containerised scrap deals include 1,000 t of HMS (80:20) scrap from West Africa at around $395/t CFR, 1,000 t of Yemen-origin HMS-LMS bundle mix at $385/t, and 500 t of HMS (80:20) from West Africa at $402/t CFR Nhava Sheva.

  Additionally, a bulk scrap cargo from Richmond Port, San Francisco, is set to arrive at Chennai Port by 29 June 2024. This shipment, booked by a Chennai-based steel mill, consists of approximately 30,000 t of mixed scrap, primarily shredded and bonus scrap.
  
  

Ferro Alloys

• Silico Manganese:Silico manganese prices in India declined w-o-w by INR 3,200/t ($38/t) to INR 75,800-76,500/t ($909-918/t) exw across the markets of Raipur, Durgapur and Vishakhapatnam. Surplus supply in the market due to limited export demand and diversions in the domestic market pulled prices down w-o-w in key regions.
  
  
• Ferro manganese:Ferro manganese (HC70%) prices witnessed a significant decline w-o-w by INR 1,500/t ($18/t) in Raipur, reaching INR 87,100/t ($1,045/t) exw. Meanwhile, in Durgapur, prices went down by INR 2,700/t ($32/t) to INR 86,300/t ($1,035/t). Prices dropped as the market demand took a downturn and limited acceptance to higher offers was also noticed.
  
  
• Ferro Silicon:Indian ferro silicon (FeSi:70%) prices took a downturn w-o-w by INR 1,100/t ($13/t) settling at INR 95,400/t ($1,1144/t) exw-Guwahati on 28 June. Meanwhile, Bhutan's prices down by INR 500/t ($6/t), reaching INR 96,600/t ($1,158/t) exw. Prices fell as the market saw lesser number of inquiries for ferro silicon.
  
  
• Ferro Chrome:Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) prices move up w-o-w by INR 1,100/t ($13/t) on 28 June, settling at INR 111,100/t ($1,334/t) exw-Jajpur. Prices set at a nearly 3-month high post higher bids placed in OMC's chrome ore auction.
  
  

Semi Finished

• Indian semi-finished steel prices showed mixed trends as per BigMint's assessment. Domestic billet prices in some key locations decreased by INR 200-1,000/t across regions, with a major decrease of INR 1,000/t seen in the Goa market. However, billet prices only in Durgapur, and Ahmedabad rose sightly by INR 100-250/t. On the other hand, sponge iron prices increased in all key locations by INR 200-1,100/t, with a major increase of INR 1,100/t seen in the Durgapur market.
  
  
• SAIL-Durgapur Steel Plant (DSP) held an auction for 2,500 t of steel-grade pig iron on 28 Jun'24. Total quantity was booked at an average price of INR 37,000/t exw.
  
  
• SAIL-Rourkela Steel Plant (RSP) held an auction for 6,000 t of steel-grade pig iron on 27 Jun'24. The entire quantity was booked at an average price of INR 35,800/t exw.
  
  
• Indian DRI (Direct Reduced Iron) export offers decreased by approximately $10-13/t, reaching $350/t on CPT Raxaul, and $362/t on CPT Benapole.
  
  

Finished Long Steel

• IF-rebar:India's induction furnace route finished long steel market observed an improvement in trading activities this week as buyers became active and procured material considering prices to be bottom rates. Although the prices edged lower w-o-w, they witnessed a slight uptick after reaching around three month low. These price levels were earlier recorded in the month of March'24. Sellers were offering attractive discounts initially but after receiving moderate bookings, the firmed up the offers. Taking into account the current scenario, suppliers are trying to hold the offers high but the approaching monsoons may lead to volatility in prices in the near-term.
  
  

• On a weekly basis, in rebar steel prices witnessed declined by upto INR 800/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 44,000-44,400/t exw Raipur, INR 48,000-48,600/t exw Jalna.
  
  
  

• Trade reference price of heavy structural steel for base size 150mm channel stands at INR 46,800-47,000/t exw Raipur.
  
  
  

• Trade reference prices of wire rod hovering at INR 45,300-45,800/t ex Raipur.
  
  
  
• BF-rebar:Trade-level blast furnace (BF) rebar prices declined by INR 800-1,200/t on the week across major markets owing to sluggish domestic demand. Buyers remained on sidelines amid decline in prices and were cautious in making purchase decisions which kept demand need based only. Furthermore, they are waiting for mills' prices for July dispatches.
  
  
• Current week's rebar prices (12-32mm) in the trade segment dropped by INR 1,000/t w-o-w to INR 56,300/t exy-Mumbai. Prices are exclusive of GST at 18%.
  
  
• In the projects segment, prices were hovering around INR 55,500-56,500/t FOR Mumbai.
  
  

Finished flate steel

• The prices of hot-rolled coil (HRC) have experienced a marginal decline, stabilizing within the range of INR 52,000-56,500/t. In contrast, cold-rolled (CR) coil prices have remained unchanged, maintaining levels between INR 57,800-63,500/t across various markets.
  
  
• Currently, the HRC market shows persistent sluggishness attributed to weakened demand and increased imports, which have exerted downward pressure on prices. Buyers are increasingly cautious, preferring to wait for lower prices, thereby adopting a cautious approach.
  
  
• According to vessel line-up data monitored by BigMint, India imported a total of 2,64,543t of bulk hot-rolled coils (HRC) and plates by June 24, 2024, with cumulative imports reaching 3,57,329t by May 2024. An additional 1,29,579 tons of bulk HRC and plates are expected to arrive by the end of June 2024. Recent deals include imports from Vietnam totaling 1,10,000/t at prices ranging from $572-585 CFR, and from China, 30,000t at $552-557 CFR for August 2024 arrivals.
  
  
• India exported 73,832t of bulk HRC and plates by June 17, 2024, with total exports for May 2024 reaching 252,673t.

  Export offers from Indian hot-rolled coil (HRC) to Southeast Asia and the Middle East (ME) remain subdued. Indian steel mills have maintained their export offers for HRC (S275, 3mm) to the EU this week, despite anticipation among market participants for new HRC import quotas.