Weekly round-up: Semi-finished steel prices volatile even as primary mills hike offers

Domestic induction furnace-finished long steel showed positive trend. Prices surged by primary mills turning focus towards secondary market.

• SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, decreased by INR 300/t w-o-w to INR 9,550/tonne (t) DAP Raipur on 9 February 2024. No deal was recorded from the Raipur region in the last one week. Prices dropped amid the sluggish approach from buyers along with the downtrend sponge and finish steel market.
  
  
• NMDC conducted an iron ore auction from Kumaraswamy Mines, Karnataka on 6 February. According to sources, 316,000 t fines (Fe 58.12-63.81%) and 111,000 t lumps (10-40mm, Fe 58.83-61.57%) were booked at INR 3,440-5,413/t and INR 4,638-5,788/t against the base price of INR 3,430-4,576/t and INR 3,748-4,328/t, respectively. Prices are on FOR, ex-stockpile/mines basis and inclusive of royalty, DMF and NMET.
  
  
• KSMCL conducted an auction for 160,000 t of iron ore from its Subbrayanahalli mines in Bellary, Karnataka on 8 Feb'24. 108,000 t fines (Fe 63.02%) and 52,000 t lumps (10-40 mm, Fe 63%) were booked at INR 5,022-5,032/t and INR 5,846-5,856/t against the base price of INR 4,862/t and INR 5,346/t, respectively. Notably, bid prices for fines and lumps were higher by INR 170/t and INR 510/t, respectively. Price is on ex-mines basis excluding royalty, DMF, and NMET.
  
  
• Asia-Pacific Supramax dry bulk (cargo capacity 50,000-55,000 t) freight rates for an iron ore-loaded vessel from the east coast of India to China was recorded at $15/tonnes (t) on 7 February, 2024, remained stable w-o-w, according to BigMint's assessment. Dry bulk freight trade activities remained firm this week. The market is optimistic as the enquiries were seen to fulfil procurement needs ahead of the Chinese New Year holidays.
  
  
• BigMint's weekly Indian low-grade iron ore fines (Fe 57%) export index decreased by $3/tonne (t) w-o-w to $83/t FOB east coast on 8 February 2024. A deal of 55,000 t Fe 56/57% fines was heard at $87/t FOB India towards the end of last week. The seaborne Indian low-grade fines market remained sluggish this week as the majority of participants were away for the Lunar New Year holidays. No trading activity was witnessed during the week while sellers also kept their offers on hold.
  
  

Coal

• Australian premium hard coking coal prices dropped by 2% w-o-w to $316/t FOB and $330/ t CNF on 10 Feb'24 amid tepid demand from India and China.
  
  
• RB1 (6000 NAR) grade prices remained stable w-o-w to $92/t FOB. Similarly, RB3 remained unchanged w-o-w at $63/t FOB Richards Bay, South Africa.
  
  
• Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port recorded at INR 7,300/t, stable w-o-w.?
  
  

Ferros Scrap

• The demand for imported scrap in India remained subdued as buyers showed limited interest due to sluggishness in the finished steel market across regions. Shredded scrap offers from Europe remained stable on a weekly average, with a slight uptick of $1/t to $415/t CFR Nhava Sheva compared to the previous week's $414/t CFR. Similarly, HMS (80:20) offers also showed a stable weekly trend with minor fluctuations, standing at $397/t CFR Nhava Sheva. HMS (80:20) from West Africa to Chennai port witnessed a $1/t drop in its weekly average price trend, reaching $393/t.
  
  
• Despite tepid market conditions, a thin level of transactions was recorded, including deals sourced from Malaysia, West Africa, UK, US, and Germany. Specifically, 1200 t of Malaysia origin CR Bushelings were secured at $440/t CFR, approximately 500 t of HMS (80:20) were obtained from West Africa at $385/t CFR, and around 1,200 t of CR busheling scraps were booked from Germany at $410/t CFR West Coast India. Additionally, a small parcel of 250 t of US origin Turning boring scrap was secured at $350/t on a CFR Nhava Sheva basis.
  
  
• Market participants noted a notable price disparity between domestic and imported scrap. Recent offers for HMS from the UK (arrival cargo) at $375/t CFR Mundra attracted minimal interest from buyers. Domestic scrap is presently offered at a discount of $15-20/t compared to imported scrap.
  
  
• The recent short-term surge in domestic steel scrap availability empowered mills to strategically reduce their scrap procurement costs. With subdued market conditions in the steel sector and the arrival of sponge iron in decent volumes, scrap suppliers lowered their prices in Mandi Gobindgarh, as informed by a scrap supplier to BigMint.
  
  

Ferro Alloys

• Silico manganese: Indian silico manganese prices rose to a four-month high, as increased export inquiries and domestic demand prompted a supply deficit, resulting in a price increase. On February 9, 2024, silico manganese (60-14) was trading at around INR 67,700-68,000/t ($816-$819/t) exw Durgapur, Raipur, and Vizag, up INR 600/t ($7/t). However, the domestic steel billet index BigMint was assessed at INR 39,250/t ($473/t) exw-Raipur on February 9, 2024, at 17:00 hrs, which stayed unaltered from the previous week.
  
  
• Ferro Manganese :Ferro manganese (HC70%) prices rose as the export inquiries majorly from Japan and Vietnam increased, and production curtailment has led to price hikes in the domestic market. According to BigMint, ferro manganese prices in Durgapur and Raipur on 9 February varied between INR 67,750 and INR 68,000/t ($816-$819/t), up by INR 550/t ($7/t).
  
  
• Ferro Silicon:Indian ferro silicon (FeSi:70%) prices have fallen by INR 2,100/t ($25/t) ex-Guwahati and Bhutan. Bhutan's pricing announcements were opened at a lower range due to a drop in domestic ferro silicon prices. As of February 9, BigMint reported ferro silicon prices in India at INR 107,000/t ($1,288/t), down INR 1,600/t ($19/t) exw-Guwahati and INR 107,000/t ($1,289/t) exw-Bhutan, implying a price drop of INR 2600/t ($31/t).
  
  
• Ferro Chrome:On February 9, Indian ferro chrome (HC 60%, Si:4%) prices were stable with a slight increase, but market players appeared more cautious. Prices rose by INR 200/t ($2/t), to INR 118,500/t ($1,427/t) ex-Jajpur. Following the results of the OMC chrome ore and Vedanta-FACOR ferro chrome auctions, most producers increased their bids. Meanwhile, 304 grade stainless steel prices remained stable at INR 173,000/t ($2,084/t) ex-Mumbai week on week.
  
  

Semi-Finished

• Indian semi-finished steel prices decreases as per SteelMint's assessment. Domestic billet prices decreased by INR 100-600/t across regions, with a major decrease of INR 600/t seen in Mandi Gobindgarh. Similarly, sponge iron prices in almost all key locations also decreased by INR 100-800/t, with a major decrease of INR 800/t seen in Ramgarh. However, sponge iron prices only in Raigarh edged up by INR 50/t.
  
  
• SAIL's Rourkela Steel Plant auctioned 1,100 t of steel-grade pig iron on 03 Feb'24. 700 t material was booked at an average price of INR 37,240/t exw.
  
  
• SAIL-Durgapur Steel Plant held an auction for 2,000 t of steel-grade pig iron on 2 Feb'24. The entire quantity was booked at an average price of INR 37,900/t exw.
  
  
• Indian DRI (Direct Reduced Iron) exports offers decreased by approximately $3-4/t, reaching $356/t on CPT Raxaul, and $362/t on CPT Benapole.
  
  

Finished-long steel

• Finished Long Steel (IF Route):India's induction furnace route finished long steel witnessed a mixed price trend across the regions this week. Buying activities remained dull as limited trades were observed in spot market. Sellers were compelled to offer attractive discounts in order to liquidate material, considering the factors like inventory pressure, raw material price movement as well as lifting of previously booked material. However, need-based buying prevailed in the market throughout the week. As per the participants, similar trend might continue in the near term.
  
  
• On a weekly basis, in rebar steel prices fluctuates in the range of INR 100-600/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 42,300-42,700/t exw Raipur, INR 48,000-48,500/t exw Jalna.
  
  
• Trade reference price of heavy structural steel for base size 150mm channel stands at INR 45,000-45,400/t exw Raipur.
  
  
• Trade reference prices of wire rod hovering at INR 42,000-42,500/t ex Raipur.
  
  
• BF-rebar:Trade-level prices of BF-route rebars rose on weekly basis across markets as mills announced hike of up to INR 1,000/t for early-February 2024 sales. Current list prices are hovering around INR 52,000-52,500/t on landed basis. Meanwhile, demand in the traders' market remained slow amid need basis buying and rebar inventories with mills rose 8% m-o-m crossing 6 lakh tonnes mark in January 2024.
  
  
• In the projects segment, prices are presently in the range of INR 50,000-50,500/t FOR Mumbai basis. There is no bulk purchase in the projects segment and buyers have shifted to need basis buying.
  
  
• Current week's rebar prices (12-32mm, Fe500D) in the trade segment rose by INR 400/t w-o-w to INR 52,100/t exy-Mumbai. Prices are exclusive of GST at 18%.
  
  

Finished flate steel

• The trade market prices for flat steel in India have remained stable due to the availability of cheaper alternatives and cautious sellers. BigMints benchmark assessment shows that the price for hot-rolled coils (HRC) is around INR 53,500-54,500/t ($644-656/t) and for cold-rolled coils (CRC) is around INR 61,500-62,500/t ($740-752/t). SAIL has announced an additional increase in HRC prices by INR 500/t ($6/t) and CRC prices by INR 1,000/t ($12/t), post the initial announcement of INR 500/t ($6/t) towards end-January.

  Private mills have also increased their offer prices, with HRC at around INR 57,500-58,500/t ($692-704/t) and CRC at around INR 63,000-63,750/t ($758-767/t). The market remains stable despite the price hikes and liquidity concerns.
  
  

• BigMint's latest report on India's Hot Rolled Coil (HRC) exports reveals stable pricing trends in key markets. Notably, Indian HRC exports to the Middle East maintain resilience at $630-635/t CFR where a deal of 30,000t was heard concluded, while prices to Vietnam hold steady at $610-615/t CFR Ho Chi Minh City. BigMint's HRC (SAE1006) export index stood range-bound at $/t FOB east-coast.
  
  
• In Europe, a slight dip to $715-720/t CFR Antwerp is noted due to Euro depreciation. Domestic HRC prices, however, persistently high, pose challenges amid weakened demand
  
  
• India witnessed a substantial surge in bulk hot-rolled coil (HRC) and plates imports in January 2024, reaching 6,60,344t, a notable increase from December 2023's 5,29,661t, as per the vessel line-up data maintained with BigMint. Meanwhile, in the first 5 days of February 61,300t of HRC/Plates imports were reported, keeping the traders' market participants' concerns rife about supplies exceeding the demand in the segment.