Weekly round-up: Semi-finished steel prices stable, flats edge up further

The domestic steel market saw positive trend in prices during week 36 (11 September-16 September, 2023). Semi-finished steel prices increased by INR 200-1050-/tonne (t).

Iron ore and pellets

• SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, increased by INR 150/t INR 10,300/t DAP Raipur on 14 September 2023. Deals of 43,000 tonnes (t) were recorded this week.
  
  
• NMDC has raised prices of DR-CLO and fines by INR 300/tonne (t), effective from 14 September. The miner fixed prices of DR CLO (10-40mm, Fe67%) at INR 6,270/t and those of iron ore fines (-10mm, Fe64%) at INR 4,210/t (on FOR basis from Bacheli complex). Prices include royalty, DMF and NMET charges.
  
  
• JSW has scheduled an auction of 94,800 t of iron ore lumps from Odisha on 14 September. The results are as follows: 47,400 t of lumps (10-40mm, Fe 63%) from Narayanposhi mines were at INR 7,040/t against base price of INR 6,300/t, while 3,950 t of lumps (10-40mm, Fe 63%) from Nuagaon mines sold at INR 6,300/t. Prices are inclusive of royalty, DMF and NMET.
  
  
• Steel Authority of India Ltd (SAIL) conducted an auction for 20,000 t of iron ore dump fines (Fe56.02%) from its Bolani mines on 13 September. The entire quantity was booked at INR 3,035/t ex-mines, including royalty, DMF and NMET. In the last auction on 29 August, around 20,000 t of iron ore dump fines (Fe56.22%) were booked from Bolani at INR 2,800/t.
  
  
• SteelMint's India pellet (Fe 63%, 3% Al) export (FOB east coast) index increased by $2/t w-o-w to $113/t on 13 September. The market remained largely inactive this week owing to bid-offer disparities from China. However, market sentiments have improved this week with the rise in global iron ore fines prices. Total deals of 105,000 t (Fe63/64%) were reported in this publishing window,
  
  

Coal

• Australian premium hard coking coal prices rose by 14% w-o-w to $315/t FOB and $332/ t CNF India, as on 16 September amid limited availability of material and and suspension of operations at a few mines.
  
  
• RB1 (6000 NAR) grade prices rose by 5% on weekly basis to $119.6/t FOB on increased buying. Similarly, RB3 prices rose by 3% at $92/t FOB Richards Bay, South Africa.
  
  
• Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port were recorded at INR 8,800/t, up INR 150/t w-o-w.
  
  

Ferrous scrap

• In India the market for imported ferrous scrap experienced sluggishness this week. Steel mills opted to hold their procurements coupled with the noticeable gap between bid and offer prices.

  Furthermore, it is expected that demand will continue to remain subdued due to upcoming festivities, as finished steel sales have been subdued, leading to reduced scrap consumption.
  
  

• Notably, offers for shredded scrap from the UK have declined by $5/t w-o-w, falling from $437.4/t last week to $431.6/t CFR Nhava Sheva this week.

  Throughout this week, deals were heard from West Africa, Europe,US, South America, US, and Australia.
  
  

• Imported HMS (80:20) scrap CFR Nhava Sheva prices were around $414/t, equivalent to approximately INR 36,407/t, and local HMS (80:20) scrap prices were INR 36,700/t DAP Mumbai.
  
  

Ferroalloys

• Silico manganese

  As of September 15, Indian silico manganese (60-14) was trading at roughly INR 68,700-70,200/t exw Durgapur, Raipur, and Vizag. Prices remained range-bound after falling INR 1,100/t w-o-w amid subdued domestic demand and limited deals for overseas markets. After rising early last week, prices fell towards the weekend.
  
  

• Ferro manganese

  Prices for Indian ferro manganese (HC70%) remained stable this week amid limited inquiries and modest demand for special steels. According to SteelMint, ferro manganese offers in Raipur and Durgapur on September 8 were INR 69,300-70,400/t exw.
  
  

• Ferro chrome

  Since the last evaluation on 7 September, Indian ferro chrome (HC 60%, Si:4%) prices have decreased by INR 2,500/t w-o-w because of lower prices in the Chinese market. On 13 September, SteelMint assessed prices of Indian ferro chrome (HC60%, Si:4%) at INR 116,000/t exw-Jajpur.

  However, the Odisha Mining Corporation (OMC) has raised the base price for its upcoming auction of 96,800 t of chrome ore from the South Kaliapani and Sukrangi mines on 18 September by approximately INR 725-2,000/t (12-13%).
  
  

• Ferro silicon

  Prices of Indian ferro silicon (FeSi:70%) remained constant this week due to low demand and plenty of inventory in the market.
  
  

Semi-finished

• Indian semi-finished steel prices increased, as per SteelMints assessment. Domestic billet prices increased sharply by INR 200-1,050/t across regions, with a major increase of INR 1,050/t seen in Rourkela. Sponge iron prices increased by INR 150-1,000/t, with a major increase of INR 1,000/t in Durgapur.
  
  
• NMDC's steel plant in Nagarnar, Chhattisgarh, conducted a steel grade pig iron auction for a total of 15,000 t on 12 September. The entire quantity was booked at an average price of INR 38,100/t.
  
  
• SAIL-Rourkela Steel Plant (RSP) held an auction for 2,200 t of steel grade pig iron on 12 September. The entire quantity was booked at an average price of INR 39,600/t exw.
  
  
• Indian DRI export offers increased by approximately $3-5/t reaching $426/t CPT Raxaul.
  
  

Finished longs

• (IF route)

  India s induction furnace route finished long steel prices observed mixed trends across regions this week. Trading activity improved in the middle of the week as traders procured material as per requirement but bookings in rebar, wire rod and structure steel slowed down again towards weekend.
  
  

• On a weekly basis, rebar prices fluctuated by INR 100-1,000/t across regions.
  
  
• The trade reference price of Fe 500 grade rebar for 10-25 mm size was assessed at INR 47,500-47,900/t exw Raipur, and INR 51,500-52,000/t exw Jalna.
  
  
• Trade reference price of heavy structural steel for base size 150mm channel stands at INR 50,400-50,800/t exw Raipur.
  
  
• Trade reference price of wire rod is hovering at INR 47,800-48,300/t ex Raipur.
  
  
• BF-route rebar
  
  
• Trade-level blast furnace (BF) route rebar prices rose w-o-w across major markets amid moderate buying activities in the distribution network. A leading primary steel-maker announced a hike in rebar prices by INR 1,000/t earlier this week, marking the second hike during the month.
  
  
• Prices in the projects segment are currently hovering at around INR 55,000-55,500/t FOR Mumbai as against INR 54,500-55,000/t last week, excluding GST at 18%. Shortage of rebar inventories at yards have lent support to prices.
  
  
• SteelMint's weekly price assessment for rebar (12-32 mm, BF-route, IS 1786, Fe500D) for the trade segment increased by INR 500/t w-o-w to INR 57,000/t, exy-Mumbai, excluding GST at 18%.
  
  

Finished flats

• Trade-level prices of finished flat products edged up further by INR 200-500/t this week in the key markets of Mumbai and Faridabad. However, coated flat steel products remained unchanged.
  
  
• Trades are happening in the spot market, but volumes are restricted due to need-based buying. Buyers are still exercising caution and keeping their stocks lean," informed a distributor source. Meanwhile, the market is buzzing with the news of a possible price hike for October, said a few sources.
  
  
• SteelMint's India HRC (SAE1006) export index stood unchanged at $580/t FOB east coast India this week. Mills are holding back offers for the ME and Vietnamese markets.
  
  
• Meanwhile, HRC (SS275, 3mm) was offered at around $690-695/t CFR Antwerp, Europe, unchanged w-o-w. Buyers are exercising caution, closely watching global price movements.