Weekly round-up: Semi-finished steel prices show upward trend, finished steel demand subdued

Domestic Steel Market Shows Positive Price Trend in Week 05 (27 Jan-1 Feb,25), Semi-Finished Steel Prices Up by INR 100-850/Tonne.

Iron ore and pellet

• BigMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, increased by INR 400/t w-o-w to INR 9,900/tonne (t) DAP Raipur on 31 January 2025. Around 25,000 pellet deals were recorded in the Raipur region this week. Pellet offers remained supportive with plants increased prices to INR 9,700-9,900/t exw recently.
  
  
• BigMint's bi-weekly Indian low-grade iron ore fines (Fe 57%) export index remained largely stable w-o-w at $67.5/t FOB east coast, India, on 30 January 2025. Three deals of around 175,000 t Fe57% fines were recorded at $64-67/t FOB east coast in this publishing window. Another deal of 80,000 t iron ore fines was recorded from the western coast at a 20-25% discount recently through an export tender.
  
  
• India pellet (Fe 63%, 3% Al) export index (FOB east coast rose by $2/t w-o-w to $105/t on 31 January. India-based pelletmaker concluded some active export deals this week ahead of the Lunar holidays. Seaborne market activity has slowed now due to the Chinese Lunar holidays.
  
  

Coal

• South African thermal coal prices at Indian ports declined, with RB2 falling to INR 8,700/t and RB3 to INR 7,250/t ex-Gangavaram, as weak buying interest and selling pressure persisted.
  
  
• Thermal coal inventories at Indian ports dropped by 4% to 13.34 mnt in week 4 of CY'25, despite lower stocks, limited inquiries, and the availability of domestic alternatives weighed on prices.
  
  
• India's domestic met coke prices stay range-bound, with 25-90 mm BF-grade at INR 33,500/t exw-Jajpur and INR 31,500/t exw-Gandhidham, supported by improved trades but constrained by restricted imports.
  
  

Ferro Scrap

• India's imported scrap market saw mixed activity this week, beginning with sluggish demand early in the week as buyers preferred cheaper domestic scrap. Limited deals were reported, with UK-origin shredded offered at $375/t CFR but bids staying lower.
  
  
• Going forward, market sentiment improved slightly as strong rebar sales and booked orders for major mills supported demand, with two bulk US shipments booked at $370-372/t CFR Mundra, though price sensitivity remained a key factor, with buyers pushing for lower bids, causing a bid-offer mismatch.
  
  
• Activity remained muted, with buyers holding back due to liquidity concerns and the availability of cheaper domestic scrap. Workable HMS (80:20) prices stood at $355-360/t CFR, but counter bids for Australian shredded remained below $365/t CFR Future trends depend on domestic demand shifts.
  
  
• Approximately 15,500-16,500 t of scrap were booked, including 7,500-8,500 t of HMS (80:20) of shredded scrap from Middle East, UK, US, Chile, Malaysia, Caribbean, Brazil has booked at $325-360/t, 4,000-5,000 t of shredded scrap from the US and Malaysia at $365-375/t, and 300-500 t of fabrication scrap from Poland at $390/t.
  
  

Ferro Alloys

• Silico Manganese:Indian domestic silico manganese prices increased by INR 1,100/t ($13/t) w-o-w to INR 70,500-71,400/t ($814-825/t) in key regions of Durgapur, Raipur and Vizag. Prices have risen due to concerns over global manganese ore supply, increasing ore prices, and rising steel prices, contributing to an upward trend in the domestic market.
  
  
• Ferro Manganese:Indian ferro manganese (HC 70%) prices went up by INR 1,600/t ($18/t) to INR 74,500/t ($861/t) exw in Raipur and Durgapur. Prices increased w-o-w as most smelters in key producing regions reduced production, tightening supply and contributing to the upward trend in domestic ferro manganese prices.
  
  
• Ferro Silicon:Indian ferro silicon prices remained largely stable, slightly up by INR 100/t ($1/t) w-o-w to INR 102,200/t ($1,181/t) exw-Guwahati . Prices were stable in Bhutan too at INR 102,100/t ($1,179/t) exw.The market remained largely silent last week, reflected by the limited trades observed. Bhutan's offers for February will help provide further clarity on prices.
  
  
• Ferro Chrome:Indian high-carbon ferro chrome (HC 60%, Si: 4%) prices were largely steady, inching down by INR 600/t ($7/t) w-o-w at INR 97,600/t ($1,127/t) exw-Jajpur. Prices were steady amid cautious sentiments in the market, most buyers and sellers adopted a wait-and-watch mode.
  
  

Semi-Finished

• Indian semi-finished steel prices upward trend as per BigMint's assessment. Sponge iron prices surged by INR 100-850/t this week across key regions in India, with the Raigarh and Raipur markets witnessing the highest increase of INR 800-850/t w-o-w. Similarly, domestic billet prices also recorded a significant rise of INR 200-750/t across the country, with the Rourkela, Gujarat, and Hindupur regions experiencing the highest jump of INR 700-800/t w-o-w.?

  NMDC's Nagarnar Steel Plant in Chhattisgarh conducted an auction for 12,500 tonnes (t) of steel-grade pig iron on 30 January 2025. Of the total quantity, 4,000 t were booked at an average price of INR 31,500/t. The base price was raised by INR 1,400/t compared to the previous auction held on 24 January 2025, where 16,000 t was offered, with the entirety booked at an average price of INR 30,100/t.
  
  

• NMDC's steel plant in Nagarnar, Chhattisgarh, conducted an auction for 12,000 t of steel-grade pig iron (transported by rake) on 31 Jan'25. Approx. 4,000 t - was booked at an average price of INR 30,500/t. At the previous auction, of the 12,500 t on offer, 4,000 t were booked at the base price of INR 31,500/t (road transportation).
  
  
• Indian sponge DRI export offers recorded a significant increase of $6-10/t for both Nepal and Bangladesh. Prices raised to $348/t CPT Raxaul for Nepal and $343/t CPT Benapole for Bangladesh.

  Regards,
  
  

Finished Long Steel

• IF-rebar:India's induction furnace route finished long steel prices observed uptrend trend w-o-w. Moderate transactions has been happened in the first half of the week but then buyers were cautiously procuring material at increased prices which results bookings slowed down later in the week. Market observing 8-10 days of inventories in the mills varying location wise. As per market participants prices are likely to remain volatile in the near term.
  
  
• On a weekly basis, in rebar steel prices witnessed surged in the range of INR 100-900/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 41,900-42,300/t exw Raipur, INR 46,700-47,300/t exw Jalna.
  
  
• Trade reference price of heavy structural steel for base size 150mm channel stands at INR 44,400-44,900/t exw Raipur.
  
  
• Trade reference prices of wire rod hovering at INR 43,200-43,700/t ex Raipur.

  BF-rebar:Trade-level blast furnace (BF) rebar prices remained range-bound on weekly basis amid subdued domestic demand as market participants have moved to sidelines awaiting mills' prices for February 2025 sales.
  
  

• Current week's rebar prices (12-32mm) in the trade segment were stable w-o-w at INR 52,200/t exy-Mumbai, excluding 18% GST.
  
  
• In the project segment, prices dropped w-o-w to around INR 48,000-49,000/t FOR Mumbai. Limited buying inquiries have contributed towards drop in prices.
  
  

Flat Steel

• HRC prices rose INR 400-1,100/t to INR 47,000-49,000/t due to the upcoming budget and safeguard duties. CRC prices showed mixed trends staying in range of INR 53,100-56,000/t. Unconfirmed reports suggest a 20-30-day maintenance shutdown at JSW Vijayanagar's HSM2, potentially impacting production. As per Bigmint's HRC and plate imports reached 426,405 t by January 27th. BigMint's India HRC export index resumed at $505/t FOB for the Middle East/Vietnam, but European demand is weak with offers at $590-595/t CFR Antwerp.