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

The domestic steel market saw a downward trend in prices during week 17 ( 22-27 April, 2023). Semi-finished steel prices dropped in the range of INR 100-1,500/tonne (t).

Iron ore and pellet

• BigMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, remained stable w-o-w at INR 9,850/tonne (t) DAP Raipur on 26 April. Around 36,500 t of deals were recorded in the Raipur region in the last one week. Raipur pellet makers kept their offers stable last week.
  
  
• NMDC increased list prices of iron ore fines and calibrated lump ore by INR 200/t and INR 300/t respectively, BigMint learnt from sources. Prices are effective from 27 April, 2024. The miner has fixed prices of DR-CLO (10-40mm, Fe67%) at INR 7,270/t and of iron ore fines (-10mm, Fe64%) at INR 5,260/t (on FOR basis from its Bacheli complex). Prices include royalty, DMF and NMET charges.
  
  
• In the NMDC iron ore auction from Kumaraswamy mines in Karnataka, around 48,000 t of lumps (10-40 mm, Fe 60.98%) and 92,000 t of fines (Fe 60.53-60.67%) were booked at INR 4,832/t and INR 3,769-3,906/t against the base price of INR 4,376/t and INR 3,689-3,716/t, respectively. From Donimalai, 4,000 t of lumps (10-40 mm, Fe 59%) and 20,000 t fines (Fe 59%) were sold at INR 4,303/t and INR 3,658/t, respectively.
  
  
• BigMint's weekly Indian low-grade iron ore fines (Fe 57%) export index inched up by $0.5/t w-o-w to $65.5/t FOB east coast on 25 April. One deal of 55,000 t was recently heard for Fe 57% fines at $72/t FOB India from Vizag port. Another eastern India-based miner sold around 110,000 t iron ore fines (Fe54%) earlier this week at a 34% discount to the IODEX index around $63-65/t CFR China. A few sellers' deals were under negotiation and there was only a $2-3/t disparity seen in the market.
  
  
• Asia-Pacific supramax dry bulk (50,000-55,000 t) freight rates for an iron ore from the east coast of India to China inched up by $1/t w-o-w to $14.5/t on 24 April. Dry bulk iron ore freight rates moved up this week on rising demand in China. Demand for steel from the manufacturing and infrastructure sectors in China has been supporting iron ore import volumes.
  
  

Coal

• Australian premium hard coking coal prices dropped 4% w-o-w to $245/t FOB and $262/ t CNF on 27 April amid oversupply of material.
  
  
• RB1 (6000 NAR) grade coal prices remained stable w-o-w at $107/t FOB. However, RB3 rose w-o-w to $82/t FOB Richards Bay, South Africa.
  
  
• Prices of South African RB3 (4800 NAR) thermal coal at Vizag Port recorded at INR 8,500/t, up by INR 300/t w-o-w.
  
  

Ferrous Scrap

• In India, the demand for imported scrap has been on the rise due to limited availability of scrap in the domestic market and an uptick in demand for finished steel. Buyers are actively procuring fresh scrap to replenish their stocks for upcoming production cycles, anticipating increased demand leading up to the elections. Several bulk orders were placed from the US West Coast, set to arrive at Indian ports around end May-June, with average prices ranging from $407-420/t CFR.
  
  

• Weekly averages show a slight decrease in shredded scrap offers from Europe, down $1/t to $426 CFR, compared to $427 CFR the week before. Meanwhile, offers from the US have seen a marginal increase of $1/t to $423 CFR w-o-w.
  
  
• Significant transactions include the purchase of approximately 3,500 t of HMS (80:20) from Australia within the range of $401-410/t, 1,500 t of HMS (80:20) from West Africa at $395-410/t CFR, around 1,000 t HMS (80:20) from Brazil at $408/t CFR, and roughly 1,500 t of HMS 1 from the Dominican Republic and South Africa at $415-420/t CFR. Additionally, there are reports of around 2,000 t of shredded scrap from the US and UK being purchased at $422-425/t CFR.
  
  

Ferro Alloys

• Silico Manganese: Silico manganese prices in India rose by around INR 700/t ($8/t) w-o-w to INR 72,600-73,300/t ($870-879/t) exw across markets such as Raipur, Durgapur, and Vizag. The confluence of rising raw material costs, robust export demand, and disruptions in Australian supply mean a potentially sustained upward price trajectory for silico manganese in the domestic market.
  
  
• Ferro manganese: Ferro manganese (HC70%) prices headed north w-o-w by INR 1,500/t ($42/t) and INR 2,900/t ($32/t) in Raipur and Durgapur, reaching INR 74,000/t ($887/t) exw, and INR 74,500/t ($893/t) respectively.
  
  
• Ferro silicon: Indian ferro silicon (FeSi:70%) prices rose by INR 850/t ($10/t), settling at INR 98,200/t ($1,177/t) exw-Guwahati on 26 April, up by INR 700/t ($8/t). Meanwhile, in Bhutan prices were up by INR 1,000/t ($12/t), reaching INR 99,200/t ($1,189/t) exw. Because of improved export inquiries and increase in Chinese prices, domestic prices remain supported.
  
  
• Ferro Chrome: Prices of high-carbon ferro chrome (HC60%, Si:4%) declined w-o-w by INR 500/t ($6/t) on 26 April, settling at INR 107,800/t ($1,293/t) exw-Jajpur. Prices fell after the conclusion of domestic auctions.
  
  

Semi-Finished Steel

• Indian semi-finished steel prices decreased, as per BigMint's assessment. Domestic billet prices in all key locations decreased by INR 100-1,500/t, with a major decrease of INR 1,500/t seen in the Ramgarh market. Sponge iron prices decreased by INR 200-1,500/t, with a major decline of INR 1,500/t seen in the Ramgarh and Jharsuguda markets.
  
  
• SAIL's Durgapur Steel Plant (DSP) held an auction for 2,500 t of steel-grade pig iron on 26 April. The total quantity was booked at an average price of INR 41,400/t exw.
  
  
• SAIL-Bhilai Steel Plant (BSP) held an auction for 4,950 t of steel-grade pig iron on 22 April. According to sources, the entire quantity was booked at an average price of INR 40,550/t exw.
  
  
• NMDC's Nagarnar Steel Plant in Jagdalpur has scheduled an auction for steel-grade pig iron of 12,000 t on 30 April.
  
  
• Indian DRI (Direct Reduced Iron) export offers decreased by approximately $2-11/t, reaching $408/t CPT Raxaul, and $412/t CPT Benapole.
  
  

Finished Long Steel

• IF Route: India's induction furnace route finished long steel prices witnessed a decline w-o-w. The market sentiment remained sluggish as buyers chose to stay on the sidelines amid constant price fluctuations and lack of clarity in market direction. Similar trends in sponge iron and steel billets forced sellers to reduce their offers in order to drive up sales. However, limited trading activities were observed in the spot market throughout the week. As per market participants, prices are likely to remain range-bound in the near term.
  
  
• Rebar prices decreased sharply by INR 800-1,900/t w-o-w across regions except a few markets, 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 45,800-46,200/t exw Raipur, and INR 51,200-51,800/t exw Jalna.
  
  
• Trade reference prices of heavy structural steel for base size 150mm channel stand at INR 48,300-48,600/t exw Raipur.
  
  
• Trade reference prices of wire rod are hovering at INR 46,700-47,200/t ex Raipur.
  
  
• BF-rebar: Trade-level blast furnace (BF) rebar prices continued to rise as mills increased list prices by INR 500-1,500/t during the week. Trade-level prices followed suit and witnessed an uptick of INR 700-1,600/t across markets - currently hovering at a 5-month high.
  
  
• Last week, rebar prices (12-32mm, Fe500D) in the trade segment increased by INR 1,300/t w-o-w to INR 56,300/t exy-Mumbai. Prices are exclusive of GST at 18%.
  
  
• In the projects segment, prices were hovering around INR 55,000-56,000/t FOR Mumbai. Demand from end-users was on need-basis and buyers remained cautious.
  
  

Finished Flat Steel

• In late April, leading hot-rolled (HR) and cold-rolled (CR) coil producers in India implemented a provisional price hike of INR 500/t. This announcement propelled list prices for HRC and CRC at the end of April to INR 53,500-54,000/t and INR 58,800-60,500/t respectively, excluding 18% GST. However, specific price levels from select private mills remained undisclosed.
  
  
• BigMint's benchmark assessment for HRC (IS2062, Gr E250, 2.5-8mm) was in the range of INR 53,000-54,000/t, while CRC (IS513, Gr O, 0.9mm) hovered around INR 60,500-61,500/t, maintaining a range-bound trend as of 26 April. These levels are similar to the previous two assessments carried out on 19 and 23 April. These prices are quoted ex-Mumbai, excluding 18% GST, and are for cut-to-length (CTL) deliveries.
  
  
• The domestic trading landscape is characterised by need-based buying, with buyers prioritising smaller, immediate purchases. Distributors are facing supply constraints and are attempting to raise offer prices, but are encountering resistance from buyers seeking negotiation.
  
  
• BigMint's HRC (SAE1006) export index remained unchanged at $560/t FOB east coast, which is focused on the offers to the Middle Eastern (ME) and the Vietnamese markets. Indian mills are holding off on exporting HRC to Europe, with price indications at $625-635/t.
  
  
• India's imports of bulk HRC and plates were at 292,814 t till 22 April.
  
  
• The country's exports of bulk HRC and plates were at 128,269 t till 22 April, according to vessel line-up data.