Weekly round-up-Semis market witnesses uptrend, flat steel prices decline

The domestic steel market remained upwards during week 50 ( 5-10 December). Semi-finished steel increased by INR 250-2,250/tonne (t).

Domestic induction furnace mills' finished long steel offers witnessed a positive price trend, with offers rising by INR 1,900/t w-o-w. The trade reference prices for finished flat decreased in the range of INR 600-2,900/t.

Iron ore and pellets

• SteelMint's bi-weekly domestic pellets (Fe 63%) index, PELLEX, stood at INR 8,900/t, up by INR 350/t compared to the last assessment on 6 December, 2022. Around 55,000 t of deals were reported in the current publishing window. Buyers are now showing interest in pellets and concluded some decent deals before the price hike.
  
  
• ArcelorMittal Nippon Steel India (AM/NS India) conducted an auction for the sale of around 25,000 t of iron ore tailings (Fe50-53%) from its Dabuna beneficiation plant in Odisha on 7 December. Sources informed that the entire material was sold at INR 345/wet metric tonne (WMT), while the floor price was set at INR 300/WMT. Prices are inclusive of royalty, DMF and NMET and ex-mines/loaded onto truck.
  
  
• India's pellet export trade has slowed down against last week, despite the index witnessing slight improvement. SteelMint's India pellets (Fe 63%, 3% Al) export index, FOB east coast, was recorded at $106/t, up by $3/t w-o-w.
  
  
• NMDC conducted iron ore auctions from Chhattisgarh's Bacheli mines (for 222,600 t, Fe64-67%, indicative) and Kirandul mines (134,400 t, Fe64-65.50%, indicative) on 6 December. According to market sources, 37,800 t of DR-CLO (Fe67%) and 10,000 t of lumps (Fe65.5%) were booked at around INR 4,301-4,311/t and INR 5,127-5,137/t, respectively (excluding royalty, DMF and NMET) at the auction from Bacheli mines whereas the remaining lots remained unsold.
  
  
• NMDC conducted an auction for 494,000 t of iron ore from its Kumaraswamy mines in Karnataka on 6 December. According to sources, 38,000 t of lumps (10-40mm, Fe58.19-65.24%) and 456,000 t of fines (Fe57.05-64.21%) were booked at INR 2,197-3,324/t and INR 1,658-2,379/t, respectively. All prices exclude royalty, DMF, and NMET charges.
  
  

Coal

• Australian hard coking coal prices remained range-bound at $250/t FOB and $264/t CNF India. The prices remained steady with not much improvement in global steel demand.
  
  
• Portside RB3 (4800 kcal/kg NAR) grade coal prices retreated marginally by INR 300/t to INR 12,700/t ex-Vizag amid limited demand.
  
  
• High-CV RB1 (6000 kcal/kg NAR) grade coal prices fell by $13/t to $239/t FOB amid absence of any significant improvement in demand.
  
  

Ferrous scrap

• The Indian ferrous scrap market remained mostly slow due to recent bulk cargo arrivals in Kandla and Chennai regions, as per market participants. The availability of materials at the port is more but demand from buyers was not significant due to bid-offer disparities and local demand was low from end-users.
  
  
• However, other Indian buyers started procuring throughout this week from the nearest origin like Singapore and the Middle East, but not in significant quantitie. They did need-based buying of specific grades.
  
  
• SteelMint's assessment of Europe-origin shredded scrap offers into India were at $445/t CFR Nhava Sheva, significantly up $20/t w-o-w.
  
  

Ferro alloys

• In SteelMint's assessment on 9 December 2022, Indian silico manganese prices inched up by 1% on a weekly basis to INR 73,100/t ex-Durgapur, INR 73,500/t ex-Vizag, and INR 73,400/t ex-Raipur. Prices for silico manganese gradually increased during the period due to the domestic steel market's erratic patterns.
  
  
• As on 9 December 2022, Indian ferro manganese prices were nearly stable w-o-w at INR 74,200/t ex-Durgapur and ex-Raipur at INR 74,500/t. While special steel demand remained stagnant, ferro manganese prices remained stable.
  
  
• Indian ferro chrome prices fell by around INR 1,800/t w-o-w to INR 94,700/t exw, assessed on 8 December. Weak demand from both domestic and export markets, particularly China, led to lower Indian ferro chrome prices amid high inventory.
  
  
• According to SteelMint's assessment on 9 December, 2022 Guwahati-based producers were offering at around INR 120,000/t exw, while offers from Bhutan remained stable at INR 125,000/t exw. Non-acceptance at higher prices by buyers compelled producers to reduce the offers.
  
  

Semi-finished

Indian semi-finished steel prices increased on active finished steel sales amidst optimistic trends. Domestic billet prices increased by INR 600-2,250/t across regions, with a major increase of INR 2,250/t seen in Raigarh. Similarly, sponge iron prices increased by INR 250-1,300/t w-o-w. However, sponge iron export demand turned sluggish from Nepal and Bangladesh on revised offers.

• SAIL-Bhilai Steel Plant held an auction for 2,000 t of steel grade pig iron on 6 December. The entire quantity was booked at an average price of INR 39,145/t exw.
  
  
• SAIL-Rourkela Steel Plant held an auction for 4,000 t of steel grade pig iron on 9 December, in which the entire quantity was booked at an average price of INR 39,150/t exw.
  
  
• Sponge iron export prices were up by $5/t, w-o-w, to $420-425/t CPT Nepal, (FeM 80%, lumps 70%, fines 30%). About 2,500 t of deals were reported this week, including pellet and lumps-based DRI.
  
  
• Nepal's mills booked BF-route billets from India after a long span. About 2,500 t of deals were reported this week at $560/t CPT Nepal. Current offers for IF route were hovering at $535-540/t exw Durgapur, equivalent to $560-565/t CPT Nepal.
  
  
• Spot steel grade prices were volatile this week by INR 300-1,200/t as prices in the eastern region fell by INR 300-500/t, while these rose by INR 1,000-1,200/t in central and northern regions. Prices strengthened on account of surge in steel prices.
  
  

Finished longs

India's finished long steel market through the induction furnace route remained active in terms of buying enquiries and moderate trading activity was seen throughout the week. Rebar, wire rod and structural steel manufacturers received adequate booking orders. Enough lifting of material by traders was seen on a regular basis due to which inventories also reduced and supported increase in prices in tandem with the rising trend in raw material prices as well.

• On a weekly basis, prices of rebar steel increase by around INR 1,700-1,900/t across regions w-o-w, as per SteelMint's assessment.
  
  
• The trade reference prices of Fe 500 grade rebar manufactured via the IF route for 10-25 mm size were assessed at INR 47,800-48,200/t exw-Raipur, INR 52,900-53,200/t exw-Jalna.
  
  
• Trade discounts given by Raipur-based heavy structural steel manufacturers were over INR 2,000/t and trade reference prices of 200 mm angles stood at INR 54,200-52,600/t exw-Raipur.
  
  
• Trade discounts given by Raipur-based steel wire rod traders were over INR 1,000/t and trade reference prices at INR 48,000-48,400/t exw-Raipur and INR 48,300-48,700/t exw-Durgapur, size 5.5 mm.
  
  
• This week, buying activities for BF-route rebars were lukewarm as prices across various markets rose w-o-w after primary mills' price announcements for December 2022 sales. The same was also supported by rise in IF-route rebar prices. However, towards the middle of the week, one of the leading primary mills announced hike in rebar list prices for mid-month sales. Furthermore, demand from northern provinces improved with the lifting of restrictions on construction and demolition activities due to a significant improvement in the air quality index.
  
  
• The current week's assessment for rebars (12-32 mm, BF-route, IS 1786, Fe500D) increased w-o-w by INR 800/t to INR 56,000-56,500/t, exy-Mumbai, excluding GST at 18%.
  
  

Finished flats

• Domestic trade market prices have fallen to about 2 year lows post the early-December sales list price announcement by mills earlier this week. HRC, GP and PPGI prices touched levels last seen in December 2020, while those of plates dropped close to April 2021 levels.
  
  
• Volatility in global flat steel prices restrained exports and lacklustre buying in domestic traders' market have weighed on the trade reference prices in this period. Meanwhile, at the traders' level, end-buyers are making cautious purchases.
  
  
• On the exports front, steel mills have started closing deals post the removal of export duty w.e.f 19 November 2022. Some deals were closed for HRCs in UAE and CRC in Europe for end-December or early-January dispatches in the past couple of weeks. SteelMint's India HRC (SAE1006) export index stood at $535/t FOB east coast, down $10/t w-o-w. However, with hike in Chinese export offers, Indian HRC export offers are likely to rise next week.