Weekly round-up: Semi-finished steel prices increase even as primary mills hike offers

The domestic steel market saw a positive trend in prices during week 40 ( 1 Oct- 5 Oct, 2024). Semi-finished steel prices increased by INR 1,000-2,300/tonne (t).

Iron ore and pellet

• BigMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, sharply increased by INR 1,100/t w-o-w to INR 10,200/tonne (t) DAP Raipur on 4 October. This week, around 148,000 pellet (Fe62.5-63.5%) deals were recorded in the Raipur region by both local and Odisha-based pellet producers. Raipur-based pellet makers have raised their pellet offers for Fe 63%(+/_0.5%) to INR 10,200-10,300/t exw-Raipur this week.
  
  
• NMDC, increased list prices of iron ore CLO (calibrated lump ore) and fines by INR 300/t($4) and INR 400/t ($5) respectively effective from 1 October, BigMint learnt from sources.
  
  
• BigMint's weekly Indian low-grade iron ore fines (Fe 57%) export index increased by $6.5/t w-o-w at $67/tonne (t) FOB east coast on 3 October 2024. Around 110,000 t Fe 57% fines deals were recorded from India at $80-85/t CFR China were recorded this week so far. India pellet (Fe 63%, 3% Al) export index (FOB east coast) increased by $6/t w-o-w at $101.5/t on 4 October.
  
  
• Asia-Pacific Supramax dry bulk freight rates (50,000-55,000 tonnes) for iron ore shipments from the east coast of India to China increased by $0.4/tonne (t) w-o-w to $13/t as of 1 October. Dry bulk freight rates increased this week, influenced by the rise in global iron ore prices. Notably, in China, the Golden Week holiday is going on from 1-7 October. Shipowners are highly active in booking vessels during the holiday period, as favourable weather conditions and increasing cargo demand.
  
  

Coal

• Australian premium hard coking coal has inched down to $203/t FOB. Prices have been largely steady awaiting clarity in price direction on Chinese holidays.
  
  
• RB1 (6000 NAR) grade coal prices picked w-o-w at $102/t FOB. RB3 prices also edged up at $69/t FOB Richards Bay, South Africa.
  
  
• Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port remained unchanged at INR 7,600/t.
  
  

Ferro Scrap

• In India, demand for imported scrap increased gradually due to pent-up demand and improved domestic steel market sentiment. Market participants observed a surge in inquiries, as buyers sought to restock ahead of the festive season, anticipating stronger steel demand.
  
  
• A trader commented, "Demand has improved, with buyers inquiring actively. The market is up due to rising iron ore and sponge prices, but I believe workable levels will stay at $400-405/t."
  
  
• On weekly average, shredded scrap offers from the US and UK/Europe rose by $10-12/t to $395-400/t CFR Nhava Sheva, while HMS (80:20) offers from UK/Europe increased by $6/t to $375/t.
  
  
• Approximately 12,000-13,000 t of mixed scraps were booked during the week from various regions, with HMS 80:20 and HMS 1 accounting for around 10,000 t in the range of $378-392/t CFR, while shredded scrap was secured at $400-403/t CFR.
  
  

Ferro Alloys

• Silico Manganese:Silico manganese (60-14) prices edged up by INR 2,750/t ($33/t) to INR 69,000-69,800/t ($827-836/t) w-o-w exw in Raipur, Durgapur, and Visakhapatnam. Strengthening steel prices are propelling domestic silico manganese offers higher. Meanwhile, tightening supply and evolving market dynamics are significantly influencing the outlook for silico manganese.
  
  
• Ferro manganese: India's ferro manganese (HC70%) prices in Raipur went up by around INR 900/t ($11/t) w-o-w to INR 70,500/t ($845/t) exw. Meanwhile, in Durgapur, prices rose by around INR 1,200/t ($14/t) w-o-w to INR 70,200/t ($841/t). Ferro manganese prices have surged recently due to rising domestic demand, particularly from steel manufacturers.
  
  
• Ferro Silicon: Indian ferro silicon (FeSi:70%) prices increased by around INR 7,900/t ($95/t) w-o-w to INR 104,000/t ($1,246/t) exw-Guwahati on 4 October. Prices in Bhutan also hiked by INR 7,000/t ($84/t) w-o-w, reaching INR 102,500/t ($1,228/t) exw. Prices increased amid limited supply in the market and escalated offers by producers from Bhutan.
  
  
• Ferro chrome:Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) have rose by INR 1,200/t ($14/t) to INR 111,300/t ($1,325/t) w-o-w exw-Jajpur on 4 October. Prices edged up post-higher bids at Vedanta-FACOR's ferro chrome auction, the larger lot of 10-150 mm fetched an H1 price of INR 110,500/t exw against the base price of INR 110,000/t exw.
  
  

Semi Finished

• Indian semi-finished steel prices showed upward trend as per BigMint's assessment. Domestic billet prices in almost all key locations increased by INR 1,000-2,300/t across regions, with a major increase of INR 2,300/t seen in the Hyderabad market. Similarly, sponge iron prices also increase in almost all key locations by INR 1,300-2,300/t, with a major increase of INR 2,300/t seen in the Mandi Gobindgarh market.
  
  
• Tata Metaliks increased pig iron prices for basic and foundry grades by INR 1,000/t ($12/t) due to short supply, scrap shortage, and active demand for finished products. Post-revision, prices of foundry-grade pig iron stand at INR 42,500/t ($506/t), while basic grade (Si 1.0-1.5%) prices are at INR 40,000/t ($476/t). Prices are exw-Kharagpur and applicable for Kolkata and Howrah markets.
  
  
• Indian DRI (Direct Reduced Iron) export offers increased by $15 for CPT Raxaul, reaching $386/t while, CPT Benapole offers increased by $32 and stood at $396/t.
  
  

Finished Long Steel

• IF-rebar: India's induction furnace route finished long steel prices continued the upward trend this week. Suppliers hiked offers further on improved buying enquiries as well as rising raw material prices. Buyers booked average material as they feel prices are like to remain on the higher side. Sellers also reported shortage of material at the moment as they had previously resorted to production cuts. Such factors kept prices supported throughout the week. As per the participants, similar trend might prevail in the near-term as manufacturers have sufficient booking orders and they are trying to maintain the current conversion spread.
  On a weekly basis, in rebar steel prices increased in the range of INR 900-2,600/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 45,700-45,900/t exw Raipur, INR 49,300-49,900/t exw Jalna.
  
  
  

• Trade reference price of heavy structural steel for base size 150mm channel stands at INR 45,800-46,300/t exw Raipur.
  
  
  

• Trade reference prices of wire rod hovering at INR 46,500-47,000/t ex Raipur.
  
  
  
• BF-rebar: Indian primary mills increased rebar list prices by up to INR 2,000/t for early-October 2024 deliveries. Post revision, list prices hovered in the range of INR 52,000-53,000/t on landed basis. Weak demand in the trader's market weighed on sentiments last month, while supply issues from production suspensions at a PSU steelmaker drove higher prices amid shortages in some markets.
  
  
• Trade-level BF-rebar prices witnessed increase across major markets. Current week's rebar prices (12-32mm) in the trade segment rose by INR 1,900/t w-o-w to INR 52,400/t exy-Mumbai, excluding 18% GST.
  
  
• In the project segment, prices hovered at around INR 51,000-52,000/t FOR Mumbai.
  
  

Finished flat steel

• The tier-I steel mills may announce an increase in their list prices of hot-rolled coils (HRCs) and cold-rolled coils (CRCs) by INR 500-1,500/tonne (t) ($6-18/t) for the October 2024 sales. he increase in raw material and global prices is among the leading reasons for the likely price hike, hinted industry sources.
  
  
• List prices of HRCs (2.5-8 mm, IS2062, Gr E250, Br.) stood at INR 47,000-50,000/t ($559-595/t)exy-Mumbai, while CRCs (0.9 mm, IS513 CR1) hovered at around INR 53,000-57,000/t ($631-678/t). The same could not be confirmed at mills' end. These prices exclude GST of 18%.
  
  
• As per BigMint's vessel line-up data, the cumulative import volume for September 2024 touched 7,76,835 t. It was 627,426 t in August, and 636,651 t July 2024. An additional 246,902 t is expected to arrive in October.
  
  
• India's exports of HRCs were low because of competition from other sources in regions like Southeast Asia and the Middle East, as well as geopolitical tensions. Anti-dumping investigations in Europe also affected Indian HRC exports to that market.