Weekly round-up: Semi-finished steel prices rise on improved demand

The domestic steel market saw upward trend in prices during week 53 (1-6 January, 2024). Semi-finished steel prices increased in the range of INR 400-1,000/tonne (t).

Iron ore and pellets

• SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, decreased by INR 100/t w-o-w to INR 10,000/tonne (t) DAP Raipur on 5 January, 2023. A deal of 2000 t was recorded from the Raipur region in the last one week. The pellet makers dropped the offers by INR 300/t this week.
  
  
• NMDC raised the prices of DR-CLO by INR 200/tonne (t) and fines by INR 250/t, effective 2 January 2024. The miner fixed prices of DR CLO (10-40mm, Fe67%) at INR 6,920/t and those of iron ore fines (-10mm, Fe64%) at INR 4,910/t (on FoR basis from Bacheli complex). Prices include royalty, DMF and NMET charges.
  
  
• NMDC had an iron ore auction from Kumaraswamy Mines, Karnataka on 29 December, 2023. According to sources, 180,000 t fines (Fe 59.38-64.21%) and 185,000 t lumps (10-40 mm, Fe 58.9-65.13%) were booked at INR 3,104-5,836/t and INR 3,215-6,408/t against the base price of INR 3,104-3,936/t and INR 3,215-4,358/t, respectively. Prices are on FOR, ex-stockpile/mines basis and inclusive of royalty, DMF and NMET.
  
  
• SteelMint's weekly Indian low-grade iron ore fines (Fe 57%) export index increased by $2/tonne (t) w-o-w to $95/t FOB east coast on 4 January 2023. Three deals for export around 160,000 t of standard Fe (55-57%) fines were recorded for China at $92-96/t FOB east coast in this publishing window. However, another deal of 30,000 t fines (Fe51-56%) were recorded from western India to GCC in the last one week.
  
  
• SteelMint's India pellet (Fe 63%, 3% Al) export (FOB east coast) index increased by $1/t w-o-w to $132/t on 3 January. One export deal of 75,000 t raw pellets (Fe 62%) from eastern India was concluded at $150/t CFR China this week. A South India-based pellet maker had floated an export tender for 50,000 t of material (Fe 63%; Al2O3- less than 2%) on 4 January. As per sources, the tender was heard concluded at around $140/t FOB.
  
  

Coal

• Australian premium hard coking coal prices rose by 3% w-o-w to $333/t FOB and $350/ t CNF on 6 January, 2024 amid improved demand from India.
  
  
• RB1 (6000 NAR) grade prices dropped by 2% w-o-w to $99/t FOB. Similarly, RB3 prices dropped by 7% w-o-w at $71/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, stable w-o-w.
  
  

Ferro Scrap

• During the week, the purchasing interest for imported scrap in India remained subdued. This was primarily due to the availability of cost-effective alternatives in the domestic market, ample inventories held by steel mills, and uncertainty surrounding offers from Europe and the US, exacerbated by the Red Sea crisis leading to increased freight rates.
  
  
• Shredded scrap offers experienced a marginal uptick of $2/t, reaching $412/t CFR Nhava Sheva, compared to the previous week's $410/t CFR. Similarly, HMS (80:20) scrap offers increased by $2/t to $392/t CFR Nhava Sheva, up from the previous week's $390/t CFR. This upward adjustment occurred towards the end of the week in response to the Turkish market's price hike.
  
  
• A representative from a steel mill explained, "We are not interested in securing fresh materials as we already have sufficient inventories until February. Furthermore, we are awaiting an improvement in the domestic market."
  
  
• Furthermore, a bulk vessel had arrived at Gujarat's Kandla Port on 1 January, transporting 25,000 t of mixed scrap from the US. However, specific details about the scrap's grade and price remained unconfirmed. The recipient of the scrap is reported to be MONO STEEL (INDIA) LIMITED, a steel mill based in Gujarat
  
  

Ferro Alloys

Silico Manganese: Indian silico manganese prices were up by INR 350/t ($4/t) as both domestic and export inquiries improved. "Export deals are taking place after a gap of around 5 months, as Europe has opened its boundaries with good number of inquiries. Based on the present situations, SteelMint anticipates a short-term price increase. On 5 January, 2024, Indian silico manganese (60-14) was trading at approximately INR 64,400-65,200/t ($774-784/t) exw Durgapur, Raipur, and Vizag.

Ferro Manganese: Prices of ferro manganese (HC70%) increased this week because there were production cuts and demand also went up that made the ferro manganese prices to scale. According to SteelMint, ferro manganese offers in Durgapur and Raipur on 5 January were INR 64,900- INR 65,000/t ($780-$781/t) up by INR 650/t ($8/t) exw.

Ferro Silicon: Prices of Indian ferro silicon (FeSi:70%) saw an uptick in its prices by INR 4,300/t ($52/t). After Bhutanese price announcements ferro silicon prices hiked, this price rise is due to the increased electricity tariff in Bhutan. According to SteelMint, prices of ferro silicon in India on 5 January were at INR 106,000/t ($1,274/t) exw-Guwahati.

Ferro Chrome: On 5 January, prices of Indian ferro chrome (HC 60%, Si:4%) rose by INR 1,700/t ($ 20/t) a 2-month hike to INR 112,700/t ($1,355/t) exw-Jajpur. The prices swung up because there was a shortage of chrome ore as well as finished material in the market. However, INR 175,000/t ($2,102/t) exw-Mumbai, the price of 304 grade stainless steel in India stayed constant w-o-w.

Semi-Finished

• Indian semi-finished steel prices increased as per SteelMint's assessment. Domestic billet prices increased by INR 400-1,000/t across regions, with a major increase of INR 1,000/t seen in Hyderabad market. Similarly, sponge iron prices also increased by INR 100-900/t, with a major increase of INR 900/t seen in Jharsuguda market.
  
  
• SAIL-Durgapur Steel Plant held an auction for 2,600 t of steel-grade pig iron on 5 January, 2023. Entire quantity was booked at an average price of INR 37,500/t exw.
  
  
• The prices of foundry grade pig iron have recently risen by INR 1,000-1,500/t in Gujarat, Punjab, Delhi, and Kolhapur. Current price of Ahmedabad pig iron is INR 47,000/t DAP.
  
  
• SAIL's Rourkela Steel Plant auctioned 2,000 t of steel-grade pig iron on 2 January, 2023. The entire lot was divided into two, with 1,000 t at an average price of INR 37,050/t exw and the remaining 1,000 t at an average price of INR 37,500/t exw.
  
  
• Indian DRI (Direct Reduced Iron) exports offers decreased by approximately $2-3/t, reaching $370/t on CPT Raxaul, and $380/t on CPT Benapole.
  
  

Finished-long steel

IF Route Rebar:

• India's induction furnace route finished long steel witnessed an uptick in prices w-o-w. Improvement in trading activities were observed across various regions as buyers procured material in moderate quantities which prompted sellers to hike the offers. A similar trend in sponge iron (PDRI) and billet further led to the current market scenario. Participants expect volatility to persist in the near term as market direction lacked clarity at the moment. W-o-w, in rebar steel prices increased by up to INR 1,300/t across the regions as per SteelMint 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 43,300-43,700/t exw Raipur, INR 48,700-49,200/t exw Jalna.
  
  
• Trade reference price of heavy structural steel for base size 150mm channel stands at INR 46,600-47,000/t exw Raipur.
  
  
• Trade reference prices of wire rod hovering at INR 44,000-44,500/t ex Raipur.
  
  

BF-route rebar:

• Indian primary mills have announced rebar list prices for early-January 2023 deliveries this week. Current list prices are hovering at INR 52,000-53,000/t on landed basis. Trade-level blast furnace (BF) rebar prices continued to slide downwards on weekly basis amid slow domestic demand. Buyers have adopted cautious buying approach last month amid volatility in prices as prices have been on free fall since 13 consecutive weeks.
  
  
• SteelMint's weekly price assessment for rebars (12-32 mm, BF-route, IS 1786, Fe500D) for the trade segment fell by INR 300/t to INR 52,200/t, exy-Mumbai, excluding GST at 18%.
  
  

Finished flat steel

• Trade-level hot-rolled coil (HRC) and cold-rolled coil (CRC) prices remained range-bound in the markets under assessments this week. The benchmark assessment (bi-weekly) for HRC (IS2062, Gr-E250, 2.5-8mm) stood at 54,000-55,000/t exy-Mumbai while those of CRC (IS513, Gr-O, 0.9mm) ranged between INR 61,5000-63,000/t exy-Mumbai as of 2 January 2023 and maintained the levels in second assessment on 5 January. The market has been buzzing about a list price increase of INR 500-1,000/t for January sales. The price tags however remained elusive, and a follow-up article on the same shall be published after the due-diligence. Increase in the monthly average raw material prices in December 2023 compared with November, is among the factors behind this.
  
  
• The w-o-w analysis for HRC exports showed no change for the offers in the European Union region. The offers for HRC (3mm+, S275) were unchanged at approximately $690-700/t CFR Antwerp, EU.
  
  
• Meanwhile, Indian steel mills have concluded an export deal in the Middle East market at $635-640/t CFR, in the previous week, already reported. SteelMint's HRC (SAE1006) export index stood at $600/t FOB, East coast as of 2 January.
  
  
• Indian mills have opted to curtail HRC exports to Southeast Asia, citing diminished profitability and the competitive pricing strategies adopted by Chinese counterparts.