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

The domestic steel market witnessed a positive trend in prices during week 16 (15 April- 20 April, 2023), as semi-finished steel prices edged up by INR 1,100-2,000/tonne (t).Domestic induction furnace finished long steel offers followed an upward trend. Prices rose in the range of INR 300-1,000/t.

Iron ore and pellet

• BigMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, inched down by INR 350/t w-o-w to INR 9,850/tonne (t) DAP Raipur on 19 April. Around 77,000 deals were recorded in the Raipur region in the last one week. The Raipur pellet producer increased the raw pellet offers by INR 400/t earlier this week.
  
  
• OMC conducted an auction for 3 mnt of iron ore from Odisha on 19 Apr'24. The steelmakers participated actively in the auction and the Entire quantities of fines (1.828 mnt, Fe 54-65%)were booked at INR 2,850-5,600/t. While 1.163 mnt (99% of offered quantity, Fe 58-64%) was booked at INR 5,000-7,950/t. Bids for fines and lumps have increased by INR 300-900/t and INR 200-1,050/t for majority lots against last month's bids, as per BigMint's analysis.
  
  
• NMDC conducted an auction for 144,000 t of iron ore on 15 Apr'24 from its Kumaraswamy mines. 48,000 t lumps (10-40 mm, Fe 61.77%) were booked at INR 5,709/t against a base price of INR 4,549/t while 96,000 t fines (Fe 59.9-60.96%) were booked at INR 3,588-3,782/t against base price of INR 3,578-3,772/t on ex-mines basis, including royalty, DMF and NMET. Bid prices for lumps were higher by INR 1,160/t.
  
  
• BigMint's weekly Indian low-grade iron ore fines (Fe 57%) export index rose by $8.5/t w-o-w to $65/t FOB east coast on 18 April 2024. One deal of 55,000 t was heard for standard Fe 57% fines at $74-75/t CFR China earlier this week. One more deal of 55,000 t was heard at around $77-78/t CFR China recently but it is yet to be confirmed. Discount for Fe 56/57 grade also stands at around 25-26% from the last week which was 25-27%. In another export deal for Fe 54 fines were concluded by an Odisha-based miner. around three shipments have been booked for this week at the index price of around $62-64 CFR China (32-33% discount).
  
  
• An eastern India-based pellet maker recently concluded an export deal for 75,000 t (Fe62%) pellets. The deal was heard concluded recently at around $120-121/t CFR China for May shipment, as per BigMint. Indian pellet export prices have risen following China's price recovery. Notably, India exported 11.3 mnt of pellets in FY'24.
  
  

Coal

• Australian premium hard coking coal prices rose by 13% w-o-w to $254/t FOB and $271/ t CNF on 20 April amid deals concluded at higher levels.
  
  
• RB1 (6000 NAR) grade prices rose by 5% w-o-w to $107/t FOB. Similarly, RB3 rose by 6% w-o-w at $72/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, rose by INR 200/t w-o-w.
  
  

Ferrous Scrap?

• Indian imported ferrous scrap market: This week in India, the demand for imported scrap remained better as buyers attempted buying both in containers and bulk after seeing a rising trend in domestic scrap price. Shredded scrap offers from Europe saw an increase, rising by $6/t to $427/t CFR compared to $421/t CFR in the previous week. Similarly, HMS (80:20) offers from Europe also climbed to $402/t CFR, up by $7/t from the previous week's $392/t CFR.
  
  
• In noteworthy transactions, approximately 10,000 t of various scrap grades including HMS, shredded, Forzing and rolling scrap along with PNS and LMS bundle mix grade was secured from Africa, US , Hong Kong , Brazil and Europe at the range of $400-480/t on a CFR basis.
  
  
• It is noteworthy that, Indian steel mills have secured bookings of approximately six bulk scrap vessels in April 2024. The vessels, originating in the US west coast, are expected to reach most probably Kandla, Chennai, and Vizag ports, between May and June. The deals were heard at $410-415/t for shredded and $395-400/t for HMS (80:20). Bulk offers have increased by $5-10/t.
  
  
• As per recent indications, the mood in the market is positive as supply is not strong. Plus, due to the elections (no trade of non-billed) and limited pipeline, Indian buying is good.
  
  

Ferro Alloys

• Silico manganese prices in India jumped by around INR 3,150/t ($38/t) w-o-w to INR 71,600-72,900/t ($859-874/t) exw across major markets of Raipur, Durgapur, and Vizag. Increased demand and limited supplies weighed on the domestic prices.
  
  
• Ferro manganese prices spike up on supply shortages
  
  
• Ferro manganese (HC70%) prices went up a w-o-w by INR 3,500/t ($42/t) and INR 2,700/t ($32/t) in Raipur and Durgapur, reaching INR 72,500/t ($870/t) exw, and INR 71,600/t ($859/t) respectively. Prices scaled up as the overall market faced supply shortages and hiked demand.
  
  
• Indian ferro silicon (FeSi:70%) prices descend to 3-year low of INR 1,200/t ($13/t), settling at INR 97,500/t ($1,169/t) exw-Guwahati on 19 April down by INR 1,000/t ($12/t). Meanwhile, Bhutan also experienced a drop of INR 1,400/t ($17/t) w-o-w, reaching INR 98,200/t ($1,178/t) exw. Because of the decreased demand and the differences in bid and offer, the prices decreased in both the regions.
  
  
• Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) diminished a w-o-w by INR 700/t ($8/t) on 19 April, settling at INR 108,300/t ($1,299/t) exw-Jajpur. Prices fell as bid-offer discrepancies persisted in the market.
  
  

Semi-Finished

• Indian semi-finished steel prices increases as per BiglMint's assessment. Domestic billet prices increased sharply by INR 1,100-2,000/t in all key regions, with a major increase of INR 2,000/t seen in the Jalna and Ramgarh markets. Similarly, sponge iron prices in all key locations also increased significantly by INR 800-1,700/t, with a major increase of INR 1,700/t seen in the Mandi-Gobindgarh market.
  
  
• Tata Metaliks has increased pig iron (both basic and foundry grades) prices by INR 1,000/t ($12/t) due to short supplies and robust demand.
  
  
• SAIL-Rourkela Steel Plant held an auction for 9,000 t of steel-grade pig iron on 18 Apr'24. The entire quantity was booked at an average price of INR 40,250/t exw.
  
  
• Indian DRI (Direct Reduced Iron) export offers increased sharply by approximately $27-33/t, reaching $410/t on CPT Raxaul, and $423/t on CPT Benapole.
  
  

Finished-long steel

• IF Route: India's induction furnace route finished long steel market witnessed a surge in prices w-o-w. The sudden hike in prices at the start of the week announced by sellers created panic among buyers owing to which they booked material in moderate quantities. However, trading activities slowed down later at such higher offers as buyers opted for wait-and-watch mode due to a lack of clarity on the market trend. Since, sellers received sufficient booking orders they maintained the current offer levels. As per the market participants, prices may remain volatile in the near term.
  
  
• On a weekly basis, in rebar steel prices sharply increased by INR 1,000-3,100/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 47,400-47,800/t exw Raipur, INR 52,000-52,500/t exw Jalna.
  
  
• Trade reference price of heavy structural steel for base size 150mm channel stands at INR 49,200-49,500/t exw Raipur.
  
  
• Trade reference prices of wire rod hovering at INR 48,100-48,500/t ex Raipur.
  
  
• BF-rebar: Indian Tier-1 mills increased rebar list prices by INR 1,000-2,000/t during the week. Following this, trade levels prices witnessed rise w-o-w by INR 1,500-2,200/t and there were shortages in some sizes, sources informed. Demand in the trader'smarket remained subdued. Current week's rebar prices (12-32mm, Fe500D) in the trade segment rose by INR 1,500/t w-o-w to INR 55,000/t exy-Mumbai. Prices are exclusive of GST at 18%.
  
  
• In the projects segment, prices rose w-o-w and were hovering around INR 54,500-55,500/t FOR Mumbai basis.
  
  

Finished flat steel

• BigMint's price assessment for HR and CR (cut to length form) increased across markets amidst the supply crunch with mills under maintenance shutdowns. The increase in the levels of the former was steeper than the latter while the need-based procurement persists among the end-industrial buyers.
  
  
• A few major mills went under maintenance shutdowns recently. SAIL's HSM at Bokaro and Tata's CRM at BSL, Angul are among them. Other private mills are also mulling about taking up maintenance operations in the next 10-15 days, shared a few reliable industry sources.
  
  
• BigMint's India HRC (SAE 1006) export index (for the Middle East and Vietnam) remained range-bound w-o-w to around $560/t FOB east coast India. Indian HRC export prices to Europe fell by $5-10/t w-o-w to $630-635/t CFR Antwerp. Some
  
  
• Indian HRC and CRC manufacturers have held back offers amid maintenance shutdowns led shortfall in supplies and comparatively better price levels in the domestic market, hinted EXIM industry sources.
  
  
• India's imports of bulk hot-rolled coil (HRC) and plates were at 1,76,740t till 15 April 2024. India's export of bulk hot-rolled coil (HRC) and plates were 1,07,788t till 15 April 2024, according to vessel line-up data tracked by BigMint.