Weekly round-up: Semi-finished steel prices remain volatile amid moderate demand

The domestic steel market remained volatile during week 41 ( 9 October - 14 October, 2023). Finished steel prices fell by INR 1,400/tonne (t).

Iron ore and pellets

• SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, fell by INR 100/t w-o-w to INR 10,000/tonne (t) DAP Raipur on 13 October, 2023. Deals of 45,000 t were at INR 9,900-10,450/t DAP Raipur in this publishing window.
  
  
• Steel Authority of India Ltd (SAIL) conducted an auction for 45,000 t of iron ore lumps (+10mm to 50mm, Fe 62.5%) from its Bolani mines in Odisha on 12 Oct'23. According to sources, 36,000 t of lumps were booked at INR 5,550/t loaded into rake at Bolani. Prices include royalty, DMF and NMET.
  
  
• SMIORE had conducted an auction for sale of 100,000 t of iron ore fines from Bellary, Karnataka, on 12 Oct'23. As per sources, 20,000 t of iron ore fines (Fe 57.10-57.80%) were booked at floor prices of INR 2,820-2,920/t which include royalty, DMF and NMET.
  
  
• SteelMint's India pellet (Fe 63%, 3% Al) export (FOB east coast) index fell by $1/t w-o-w to $108/t on 11 October, 2023. No deal of Fe63% grade pellet was reported in this publishing window.
  
  
• SteelMint's weekly Indian low-grade iron ore fines (Fe 57%) export index increased by $7/t w-o-w to $73/t FOB east coast on 12 October, 2023. One deal of 55,000 t Fe57% was recorded from the east coast at $85-87/t CFR China in this publishing window.
  
  

Coal

• Australian premium hard coking coal prices rose by 3% w-o-w to $367/t FOB and $384/ t CNF on 14 October amid high tradable levels and limited vessel availibility.
  
  
• RB1 (6000 NAR) grade prices rose by 8% on weekly basis to $131.5/t FOB. RB3 prices remained stable w-o-w at $99/t FOB Richards Bay, South Africa.
  
  
• Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port recorded at INR 9,600/t, largely stable w-o-w.
  
  

Ferrous scrap

• Demand for imported scrap in India stayed at a moderate level during the week. Only a few deals were reported, as there were notable differences between the prices buyers were willing to pay and what sellers were asking for.
  
  
• Scrap importers are currently exercising caution and anticipate further price corrections due to the ongoing conflict in West Asia. As per market participants, Turkiye, the largest scrap importer, is experiencing a downward trend, resulting in bearish market sentiments that are affecting the Indian scrap market too.
  
  
• On a weekly basis, shredded scrap offers from Europe edged up marginally by $2/t to $414/t CFR Nhava Sheva, although buyers were bidding in the range of $405-410/t CFR.
  
  
• HMS (80:20) scraps from Europe closed at $395/t CFR on 13 October, witnessing a drop of $3/t w-o-w across western and southern India amid weak buying sentiments.
  
  
• Going forward, the market might see an uptick in expectation of a rebound in demand before upcoming festivities.
  
  

Ferro Alloys

• Silico manganese: As of 13 October, Indian silico manganese (60-14) was traded at around INR 65,000-66,300/t exw Durgapur, Raipur, and Vizag, a decrease of INR 900/t. Due to the decline in bulk inquiries and poor export demand, prices dropped this week. Indian semis trade slowed down as domestic billet prices fell by INR 300-1,500/t in the last week due to lower finished product enquiries in major markets, which has impacted silico manganese prices.
  
  
• Ferro manganese: Prices for ferro manganese (HC70%) dropped INR 900/t this week amid weak demand for special steel. Ferro manganese offers in Raipur and Durgapur on 13 October were INR 66,500-67,000/t exw.
  
  
• Ferro chrome: On 13 October, domestic ferro chrome (HC 60%, Si:4%) prices dropped INR 4,000/t. Weak stainless steel demand and declining prices of ferro chrome in the Chinese market pushed Indian ferro chrome prices lower this week. SteelMint assessed domestic ferro chrome (HC60%, Si:4%) prices at INR 116,000/t exw-Jajpur. OMC's forthcoming chrome ore auction will decide ferro chrome prices in the coming weeks. Prices also declined as a result weak demand and cheaper raw material costs. A few key stainless steel producers cut prices, although ferro chrome demand remained muted.
  
  
• Ferro silicon: Prices of Indian ferro silicon (FeSi:70%) inched down by INR 400/ this week. Firm demand and steady trade activities kept ferro silicon prices stable. In the coming weeks there could be power supply shortage in Bhutan contributing to increased prices of ferro silicon. According to SteelMint, the price of ferro silicon in India on 13 October was INR 104,100/tonne (t) exw-Guwahati.
  
  

Semi-Finished

• This week, Indian semis trade slowed down as domestic billet prices fell by INR 300-1,500/t due to lower finished product enquiries in major markets. Prices dropped INR 1,500/t in the Mumbai market. This put pressure on sponge producers prompting them to cut their weekly offers by INR 650-1,500/t. The most significant price drop of around INR 1,400-1,500/t was seen in the Raipur and Jharsuguda markets.
  
  
• In a recent development, a West Bengal-based major steel producer has imported a pig iron vessel from Russia scheduled to arrive at Paradeep Port. According to sources, the total volume is around 44,000 t and the deal was heard concluded at $400-405/t CFR.
  
  
• SAIL-BSL (Bokaro Steel Plant) held an auction for 4,000 t of steel-grade pig iron on 12 October. The entire quantity was booked at an average price of INR 37,350/t exw.
  
  
• Indian DRI (direct reduced iron) export offers decreased by approximately $2-5/t reaching $415/t CPT Raxaul, and $428/t CPT Benapole.
  
  

Finished Long

• IF Route: India's induction furnace-route finished long steel prices plunged w-o-w. Subdued demand at higher offer prices as well as a drop in semi-finished steel prices across regions were the major factors that prompted manufacturers to reduce offers. Despite the decline in rates, limited trade was observed in the spot market. Traders are currently procuring rebar, structure, and wire rod steel to meet immediate requirements and to avoid piling up of inventory due to uncertainty in the market.
  
  
• On a weekly basis, rebar prices decreased by up to INR 1,400/t across regions, as per SteelMint assessment.
  
  
• The trade reference price of Fe 500 grade rebar manufactured via the IF route for 10-25 mm size was assessed at INR 46,300-46,700/t exw Raipur, and INR 50,800-51,300/t exw Jalna.

  Trade reference prices of heavy structural steel for base size 150mm channel stands at INR 48,900-49,200/t exw Raipur.
  
  

• Trade reference prices of wire rods are hovering at INR 46,500-46,800/t ex Raipur.
  
  
• BF-route rebar: Trade-level blast furnace (BF) route rebar prices dropped w-o-w in key markets. This dip is attributed to sluggish demand within the distribution network. Market sources informed that buying activities have been subdued since the start of this month, with the upcoming festive season further impacting market dynamics. In the projects segment, rebar prices were hovering at INR 55,500-56,500/t FOR Mumbai this week. Buying interest in the projects segment remained weak as end-users are engaging in need-based procurement.
  
  

• However, the overall market sentiment is mixed at present with softening of prices and the expectation of an interim price hike announcement by mills in the coming week.
  
  
• On the exports front, no quotes were floated by Indian mills. Slow buying interest in the overseas markets and better price levels in the domestic market have kept Indian mills focused on the latter. Furthermore, geo-political issues in the Middle East (ME) have weighed on global trade sentiments.