Weekly round-up: Semi-finished steel prices volatile even as primary mills hike offers
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The domestic steel market saw an upward trend in prices during week 35 (4september- 9 September, 2023).Semi-finished steel prices increased by INR 100-1,000/tonne.
Coal
- Australian premium hard coking coal prices increased by $3/t w-o-w to $275.5/t FOB and $289.3/ t CNF on 9 September amid scarcity of material and consistent bids from Indian buyers.
- RB1 (6000 NAR) grade prices edged down on weekly basis to $114/t FOB. RB3 prices stood largely stable at $89/t FOB Richards Bay, South Africa.
- Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port were recorded at INR 8,650/t, up INR 250/t w-o-w.
- The Indian ferrous scrap market remained stable in terms of containerised scrap, while the bulk scrap market witnessed active trade.
- European shredded scrap prices in India held steady at $435/t. Earlier in the week, deals closed at Nhava Sheva port at around $432-433/t. Towards the weekend, containerised shredded scrap from the UK was offered in the $433-435/t range.
- Some small traders were reportedly booking Brazilian material in addition to the traditional import markets.
- Offers for containerised Europe-origin HMS (80:20) were in the $415-420/t CFR range. West-Africa-origin HMS (80:20) was priced at $410-412/t CFR Nhava Sheva and $414-418/t for the southern region (CFR Chennai).
- Indian steel mills remained active in booking deep-sea bulk scrap cargoes, with 8-10 cargo bookings concluded in the last week. Steelmakers are replenishing their scrap stocks due to favouurable demand for finished steel, following the wet season.
- US-origin cargoes were booked at various price points between $415 and $425/t, with shipments expected to connect with ports in Andhra Pradesh, Gujarat, Odisha, and Tamil Nadu.
- Imported melting scrap prices at Nhava Sheva were at around $420/t, equivalent to approximately INR 37,902/t (including freight). Local scrap prices in Mumbai stood at INR 36,800/t, marking a weekly increase of INR 300/t.
Ferro Alloys
- Silico manganese
As of September 8, 2023, Indian silico manganese (60-14) was trading at roughly INR 69,800-71,200/t exw Durgapur, Raipur, and Vizag. Increased inquiries and a lack of bulk agreements overseas cause lead silico manganese prices to climb by INR 1800/t w-o-w. Another factor influencing the rise in silico manganese costs is the increase in Indian steel prices, increasing manganese ore prices by MOIL, and supply and demand problems.
- Ferro manganese
Prices for Indian ferro manganese (HC70%) fell by 100-300/t this week due to a lack of inquiries and higher demand for special steel. According to SteelMint, ferro manganese offers in Raipur and Durgapur on September 8, 2023 were INR 69,800-70,500/t exw.
- Ferro Chrome
Because stainless steel traders and producers refused to accept higher costs, ferro chrome (HC60%, Si:4%) prices fell by INR 2,000/t. Prices fell as a result of gloomy export sentiments and supply expansions by new entrants. SteelMint assessed high carbon ferro chrome (HC60%, Si:4%) pricing at INR 116,500/t exw-Jajpur on September 8. Meanwhile, high carbon low silicon ferrochrome (HC60%, Si: 2%) prices declined by INR 3,700/t w-o-w.
However, smaller lots of 0-10 mm (fines) and 10-20 mm (chips) ferro chrome sold for H1 prices at Vedanta-FACOR's ferro chrome auction on September 5, respectively.
- Ferro silicon
Post release of prices by Bhutan this week resulted in ferro silicon prices to stay firm this week. Another dimension to look after this could be mixed trends of stainless steel market and the global backdrop. According to SteelMint, ferro silicon (Si:70%) prices were INR 105,000/t exw-Guwahati on 8 September 2023. Minimum fluctuation is expected in near term paddled by early-month bookings.
- Domestic billet prices fell by INR 100-1,000/t in the last week. Among the notable price declines was a drop of INR 1,000/t in the Hyderabad market. This price drop put pressure on sponge makers, prodding them to cut weekly offers by INR 400-1,000/t. One of the most significant price drops was INR 900-1,000/t seen in the Durgapur and Bellary markets.
- SAIL- Durgapur Steel Plant held an auction for 2,500 t of steel grade pig iron on 5 September. The total quantity was booked at an average price of INR 40,750/t exw.
- Tata Metaliks has announced a price hike of INR 1,000/t ($12/t) in pig iron (both basic and foundry grades) due to increased demand at previous offers.
- SAIL-Rourkela Steel Plant (RSP) held an auction for 900 t of steel grade pig iron on 2 September. The entire quantity was booked at an average price of INR 39,650/t exw.
- India's induction furnace finished long steel prices observed weak prices across regions. Buying activity in the spot market remained dull throughout the week, which prompted sellers to offer attractive trade discounts. In most of the markets, traders remained cautious as market direction remained uncertain and participants adopted a wait-and-watch approach before placing orders.
- Rebar prices decreased by up to INR 1,000/t in most markets, while prices increased only in Mumbai by INR 600/t w-o-w, 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 47,300-47,700/t exw Raipur, an INR 51,500-52,000/t exw Jalna.
- Trade reference price of heavy structural steel for base size 150mm channel stood at INR 50,000-50,500/t exw Raipur.
- Trade reference prices of wire rod hovered at INR 47,300-47,800/t ex Raipur.
- Trade-level prices of finished flat steel continued to move upward this week. Distributors and other sellers in the market kept quoting higher whereas buyers remained cautious about booking bulk volumes. Demand improved slightly over the last couple of weeks but cautious buying kept prices from rising steeply, according to sources.
- Indian mills stood back when it came to quoting for the traditional markets in the Middle East and Vietnam. SteelMint's HRC (SAE1006) index remained unchanged at $580/t FOB east coast as of 5 September. Global trade market sentiments remain mixed. Moreover, industry sources opined that after the domestic price hike of about INR 1,250/t ($12/t) in HRCs for September sales, Indian mills might also quote higher in the overseas market.
- The provincial government in Tangshan, China has asked blast furnace operating mills to reduce their sintering activities by 20-30% over 4-30 September due to environmental concerns. This has given some support to prices but importers are cautious amid volatile HRC futures. European buyers are likely to come up with enquiries in the next few days.
