Weekly round up: Semis prices volatile, finished steel prices exhibit mixed trends

The domestic steel market saw mixed sentiments during week 39 (19 September- 24 September, 2022). While semi-finished steel prices fluctuated w-o-w, the finished steel market saw a diverse trend.

Iron ore and pellets

• Odisha Mining Corporation's (OMC's) iron ore fines auction received bids for 0.728 mnt, or 69% of the total quantity put on offer (1.049 mnt). The bid price for fines increased by up to INR 350/t against the last auction on 19 August, 2022. In another iron ore lump auction, bids were received for 387,000 t, or 56% of the total quantity put on offer (690,000 t). However, prices fell by up to INR 600/t.
  
  
• Vedanta scheduled an auction for sale of iron ore fines from its A. Narrain mines in Karnataka's Chitradurga district on 22 September. The entire quantity of 100,000 t of fines (-10mm, Fe57%) was booked at the base price of INR 1,277/t. Prices are exclusive of royalty, DMF and NMET.
  
  
• National Mineral Development Corporation (NMDC) conducted an iron ore auction from Chhattisgarh yesterday for 184,800 t of Fe 64-67% (indicative) material from the Bacheli mines, and 92,400 t (Fe64-65.50%, indicative) ore from the Kirandul mines. The entire quantity of 16,800 t of DR-CLO was booked at a premium of INR 450/t over the set base price of INR 4,957/t (excluding royalty, DMF and NMET). The remaining lots, however, remained unsold.
  
  
• SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stood at INR 8,100/tonne (t) DAP Raipur on 24 September 2022. The index remains stable compared to the last assessment on 16 September.
  
  

Coal

• Australian hard coking coal prices rose by $8/t w-o-w to $259/t FOB and $280/t CNF India. Rains in Australia and closure of Teck Resources' Elkview Mine for two months resulted in price rise this week.
  
  
• Portside RB3 (4800 NAR) prices remained firm at INR 13,700/t at Vizag Port amid small parcel trade by sponge iron manufacturers.
  
  
• South African RB1 (6000 NAR) prices fell further by $12/t w-o-w to $296/t FOB in line with the rise in gas prices this week with Europe restocking maximum of its winter requirements.
  
  

Ferrous scrap

• Indian buyers actively procured bulk scrap last week due to cost competitiveness compared to containerised material. A couple of bulk cargoes were booked at lower prices, considering the limited deals and absence of Turkish mills. Meanwhile, mills from Pakistan and Bangladesh were also quiet on liquidity crunch, power cuts and limited finished steel demand.
  
  
• Meanwhile, the containerised market remained largely silent as buyers opted for a wait-and-watch approach for clear price direction. SteelMint's assessment for shredded scrap in India stood at $455/t CFR Nhava Sheva, largely stable w-o-w.
  
  

Ferro alloys

• Silico manganese (60-14 grade) prices inched down by 1% w-o-w to INR 72,500/t ex-Durgapur, INR 72,800/t ex-Vizag, and INR 73,200/t ex-Raipur on 23 September.
  
  
• Ferro manganese (HC70%) prices dropped by 1% w-o-w to INR 75,700/t ex-Durgapur and INR 75,900/t ex-Raipur. Limited demand for special steel and stainless steel put pressure on ferro manganese prices.
  
  
• Indian ferro chrome (HC60%) prices hovered at around INR 94,000-95,000/t exw Jajpur on 22 September. Prices inched up marginally owing to improved inquires and high production costs.
  
  
• Ferro silicon prices fell to around INR 141,000-142,000/t exw Guwahati due to weak demand as buyers were expecting a further price drop as imported prices are lower.
  
  

Semi-finished steel

Sponge iron offers declined by INR 400-1,050/t w-o-w across regions. However, billet prices fluctuated by INR 100-1,300/t.

• SAIL's Rourkela Steel Plant (RSP) held an auction for 1,500 t of steel grade pig iron on 23 September, 2022. The entire quantity was booked at an average price of INR 43,295/t exw.
  
  
• Tata Steel Europe scheduled an auction for 10,000 t of pooled iron on 26 September, 2022 from its Port Talbot plant in the United Kingdom.
  
  
• SAIL-Bokaro Steel Plant held two auctions of steel grade pig iron on 21 September, 2022. The 4,000 t (2 rakes) auction received no bids whereas the another auction for 150 t was booked at INR 44,500/t exw.
  
  
• Tata Metaliks reduced foundry grade pig iron prices by INR 1,000/t ($13/t) to INR 50,200/t. However, the company's basic grade pig iron prices are stable at INR 47,900/t. Prices are exw-Kharagpur and applicable for Kolkata and Howrah markets.
  
  
• SteelMint's weekly price assessment of sponge iron exports to Nepal fell by $15/t to $455/t CPT Nepal for FeM 80% material (70% lump and 30% fines). No major fresh deals were reported this week.
  
  
• Indian BF-route billet export offers stood at around $630/t CPT Nepal. However, no fresh deals were reported as Nepal mills booked sufficient volumes from Indonesia on lower prices.
  
  
• Spot prices of steel grade pig iron were volatile w-o-w, with the highest drop of INR 500/t seen in the central region and northern region, while in eastern region, prices went up by INR 500/t.
  
  

Finished long steel

India's IF-route finished long steel market saw subdued buying enquiries earlier this week. However, trade volumes picked up later in the month.

Fluctuations in raw material prices and uncertain market trends resulted in need-based buying in rebar and structural steel as buyers turned cautious to procure bulk material.

The disparity in offers and bids was also seen. Buyers bargained hard to procure at lower prices while manufacturers and traders were seen adjusting offers or giving trade discounts as per raw material price movement.

• Rebar prices fell by INR 200-1,600/t w-o-w. In some markets, prices remained stable throughout the week.
  
  
• Trade reference prices of Fe 500 grade rebar manufactured via the IF route for 10-25 mm size were assessed at INR 51,600-52,000/t exw Raipur and INR 54,300-54,700/t exw-Jalna.
  
  
• Trade reference prices of 200 mm angles in structural steel stood at INR 56,500-57,000/t exw-Raipur.
  
  
• Trade reference prices of wire rods stood at INR 51,800-52,200/t exw-Raipur and INR 50,800-51,000/t exw-Durgapur, size 5.5 mm.
  
  
• The activities remained slow in the western and northern markets amid heavy rains, weighing on prices this week. Also, the buying sentiment weakened due to falling raw material and semi-finished steel prices. Meanwhile, the restocking activities varied across markets. In the northern market, there was lesser drive for restocking; the southern markets, however, saw a slight improvement.
  
  
• SteelMint's weekly price of rebar (12-32mm, BF-route, IS 1786, Fe500D) dropped by INR 700/t ($9/t) at around INR 55,000-56,000/t ($677-689/t), on exy-Mumbai basis, exclusive of GST at 18%.
  
  

• Trade level prices of finished flat steel products moved upward this week. This was followed by the increase in list prices by major flat steel producers for the end-September sales. Post-the price hike announcement, HRC list prices stood at around INR 56,500-57,500/t ($695-708). Meanwhile, two private steel producers raised CRC prices to around INR 64,100-65,500/t ($789-806).
  
  
• Furthermore, a private mill raised its list prices of coated steel products by INR 750/t ($9) for end-September deliveries, with effect from 22 September 2022. Revised prices of GP (0.8mm, 80gsm) stood at around INR 68,050/t ($838), PPGI (0.5mm, 90gsm) at INR 79,250/t ($975). Meanwhile, those of Bare Galvalume (BGL, 0.5mm, AZ70) rose to INR 79,750/t ($982) and BGL (0.5, AZ150) to INR 82,750/t ($1,018). Prices mentioned above are on an exy-Mumbai basis, excluding GST @18%.
  
  
• Distribution network participants turned active about restocking amid depleted inventories. End consumer industries like automotive, yellow goods, PEBS, fabrication, metro-and-railways and green energy are among active buyers, informed reliable sources.
  
  
• On the exports front, there was no movement in offers. SteelMint's India HRC (SAE1006, boron added) stood unchanged w-o-w at $583/t (INR 47,370) FOB east coast India. Most of the Indian mills were focusing on the higher realisation fetching domestic market. However, some mills floated offers at $630/t (INR 51,190) CFR Vietnam and $640/t (INR 52,000) CFR UAE and awaiting counter bids from these countries.