Weekly round-up: Semi-finished steel prices inch up, flats steel remain volatile

Iron ore and pellet

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, inched down by INR 50/tonne (t) to INR 9,300/t DAP Raipur on 14 April 2023 compared to the previous assessment on 11 April. Fall in pellet offers resulted in improved trades. Market players are waiting to see what happens in OMC's iron ore auction scheduled next week. A total of five deals of 75,000 t were concluded at INR 9,150-9,950/t DAP Raipur in this publishing window.

Vedanta conducted an auction for sale of 16,000 t of iron ore lumps (10-40mm, Fe61%) from its A. Narrain mines in Karnataka's Chitradurga district on 11 April, 2023. According to sources, the entire quantity was booked at INR 4,890/t against the floor price of INR 4,690/t. Prices exclude royalty, DMF, and NMET.

Vedanta's Electrosteel Steels Ltd (ESL) auctioned off 20,000 t of iron ore pellets (Fe63%, 8-18 mm) on 13 April, 2023. On behalf of the company, material is produced at Orissa Metaliks Private Limited's plant in Paschim Medinipur district, West Bengal. According to sources, 16,000 t of pellets were sold at INR 9,050/t while 4,000 t of pellets were sold at INR 9,100/t. Prices mentioned were ex-plant.

An Indian pellets producer concluded an export deal for 50,000 t of pellets (Fe 64%, 7% SiO2+Al2O3) on 12 April, 2023. According to sources, the deal has been closed at $119-121/t FOB. The company's previous export deal of 50,000 t, concluded a month back, fetched a bid at $124-125/t on FOB.

SteelMint's India pellet (Fe 63%, 3% Al) export index FOB east coast was recorded at $112/t, inching down by $1/t w-o-w. This happened largely due to low demand in China and disparity between bids and offers.

Coal

Australian premium hard coking coal prices dropped by $17/t w-o-w to $275/t FOB and $291/t CNF on 15 April, 2023 amid weak buying interest in spot procurement from Indian and Chinese buyers.

Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag port were recorded at 10,200/t, down by INR 100/t w-o-w.

RB1 (6000 NAR) prices inched down by 4% w-o-w. RB3 prices, on the other hand, were down by 6% to $91/t FOB.

Ferro scrap

Indian ferrous scrap prices were slightly up towards weekend. However, trade activities remained slow. Market participants believe that domestic prices were more attractive compared to imports. Some deals of different grades like shredded as well as (80:20) were heard from Europe origin with cargoes slated to arrive at Nhava Sheva and Vizag ports.

Meanwhile, market is still hopeful that prices may correct further downward after recently concluded Turkish deal.

SteelMint's assessment for imported shredded scrap in containers stood at $465/t CFR, up by $4/t w-o-w.

Ferro alloys

Silico manganese

In SteelMint's assessment on 14 April 2023, Indian silico manganese prices were marginally down by 1% w-o-w to INR 74,800/t ex-Durgapur, down by 1%, INR 75,700/t ex-Vizag, down by 1% w-o-w, and INR 74,700/t ex-Raipur, dropped 1% w-o-w. Prices for silicon manganese have been steadily declining due to domestic restricted demand.

Ferro manganese

As on 14 April 2023, Indian ferro manganese prices were nearly stable w-o-w to INR 77,800/t ex-Durgapur and ex-Raipur at INR 77,100/t. Despite tepid demand, ferro manganese prices were steady.

Ferro chrome

According to SteelMint's assessment on 13 April 2023, Indian ferrochrome (HC60%) prices ranged between INR 101,000 and 102,500/t exw-Jajpur. Ferro chrome prices fell further this week, reaching the lowest level in past four months. Due to poor market demand, manufacturers were eager to clear their stock at low prices.

Ferro silicon

According to SteelMint's assessment on 14 April, 2023, Guwahati-based producers were offering 70% grade at around INR 119,300/t exw, while Bhutan's offers remained stable at INR 120,000/t exw. Even after low interest from buyers, ferro silicon prices increased by a tiny figure. Price was majorly impacted by electricity supply shortage in the north eastern belt. Particularly in Meghalaya, situation worsened as its getting only 44% of the required electrical supply.

Semi-finished

The semi-finished steel market has seen price volatility since demand has been low over these days, resulting in price changes on floated offers through mid-sized mills.

Domestic billet prices fluctuated by INR 100-500/t in a weak trading. Meanwhile, sponge iron offers increased by INR 100-400/t, except in Mandi Gobindgarh where prices jumped by INR 200/t exw.

Jindal Steel & Power (JSP) is planning to set up a 1.2 MTPA rail and heavy structure mill at its Angul steel plant in Odisha. Rourkela Steel Plant held an auction for 4,000 t of steel grade pig iron on 11 April, 2023 and the entire quantity was booked at an average price of INR 41,256/t exw.

Finished long

India's induction furnace route-finished long steel saw a mixed trend in terms of prices as well as trading activities across the region this week. Such a market trend was observed owing to a similar movement in the raw material and semi-finished steel segment. Distributors have resorted to need-based buying in order to avoid overstocking of materials and excess inventory pressure. Nonetheless, smooth dispatching of previously booked materials as well as current orders were reported by mill officials.

In rebar steel prices fluctuated by INR 100-800/t w-o-w. Prices varied region wise while in some markets (Jaipur, Mandi, Ahmedabad and Chennai) prices remained stable, as per SteelMint's assessment showed.

-- The trade reference price of Fe 500 grade rebar manufactured via the IF route for 10-25 mm size was assessed at INR 50,700-51,100/t exw Raipur, INR 54,700-55,300/t exw Jalna.

-- Trade reference price of heavy structural steel for base size 150mm channel stood at INR 52,400-52,600/t exw Raipur.

-- Trade reference price in steel wire rod (5.5 mm, SWRY 14) in Raipur was at INR 51,000-51,700/t exw and INR 51,800-52,200/t exw Durgapur, prices were excluding GST at 18%.

BF-route rebar

Trade level prices of rebar made through blast furnace (BF) route remained range-bound w-o-w across major markets amid limited buying interest in the trade channel. Also, demand from projects has been need-based due to decent inventory levels held by end-users and current offers in the segment were hovering around INR 59,000-59,500/t FOR Mumbai.

SteelMint's weekly price assessment for rebar (12-32 mm, BF-route, IS 1786, Fe500D) for the trade segment dropped by INR 200/t w-o-w to INR 59,700/t, exy-Mumbai, excluding GST at 18%.

Finished flat

Trade level prices of flat steel products continued to remain rangebound in key markets. Lacklustre buying interest in traders' market weighed on prices in the latter half of the week for some markets under assessment.

On the exports' front, there have been very limited activities since the beginning of April. Buyers in the Middle East have also been scouting for cheaper alternatives. On top of that market activities remained slow amid the Ramadan festive month. SteelMint's India HRC (SAE1006) export index dropped to $695/t FOB east coast this week, down by $10/t w-o-w.