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Weekly round-up: Semis, rebar prices decline even as mixed market sentiments prevail

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4 Jan 2025, 14:04 IST
Weekly round-up: Semis, rebar prices decline even as mixed market sentiments prevail

Domestic induction furnace finished long steel offers showed a mixed trend. Prices fluctuated within a range of INR 200-500/t.

Iron ore and pellet

  • BigMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, increased by INR 300/t w-o-w to INR 9,550/tonne (t) DAP Raipur on 3 January 2025. Raipur-based pellet-makers raised their offers for pellet Fe 63% (+/_0.5%) by INR 200-300/t to INR 9,400-9,500/t ($111-112/t) exw. Around 100,000 t pellet deals concluded in the Raipur region this week at the revised offers.

  • BigMint's bi-weekly Indian low-grade iron ore fines (Fe 57%) export index inched down by $1.5/tonne (t) w-o-w to $61/t FOB east coast, India, on 2 January. An Odisha-based miner concluded an export deal for around 55,000 t of iron ore fines (Fe57%) on 2 January, sources informed BigMint. The single-mine cargo was sold at an 18.5% discount on the global fines index and fetched a price of $76/t CFR China.

  • BigMint's India pellet (Fe 63%, 3% Al) export index (FOB east coast) fell by $1/t w-o-w to $95/t on 3 January. Sources informed BigMint that an India-based pellet-maker concluded an export deal for around 50,000 t (Fe 63%, 8% Al2O3+SiO2) through a tender last week. Seaborne buyers showed interest in premium material, and it was heard that the deal was concluded at $105-106/t FOB India.

Coal

  • India's portside prices for South African thermal coal remained steady due to weak demand and ample port stocks. RB2 (5500 NAR) prices stayed at INR 9,250/tonne, while RB3 (4800 NAR) prices slightly decreased by INR 100/t to INR 7,650/t, both ex-Gangavaram.

  • India's domestic met coke prices remained steady this week, with the 25-90 mm blast furnace grade at INR 32,000/t exw-Jajpur and INR 28,400/t in Gandhidham. Following the announcement of quarterly import restrictions, domestic producers raised offers to INR 34,000-36,000/t in eastern India, but the market has yet to absorb these increases.

  • BigMint's premium hard coking coal index was assessed at $215/t CNF Paradip, India, on 31 December 2024, down from $223/t CNF on 14 December. Despite the decline, price indications have remained range-bound.

Ferro Scrap

  • The Indian imported scrap market saw limited activity this week, with shredded scrap prices rising slightly to $387/t CFR Nhava Sheva, up $2/t w-o-w. The increase was driven by tight US supplies, improved domestic steel sentiment, and restocking expectations, though a weak rupee added pressure on buyers.

  • HMS (80:20) prices remained stable at $360-365/t CFR from the UK/Europe, while West African material was offered at $365-375/t CFR. Holiday closures and cautious buyer interest kept transactions subdued, with most purchases made in small quantities.

  • Market sentiment improved compared to December, supported by stable domestic steel prices and optimism around restocking. Activity is expected to recover after January 6 as suppliers resume operations.

  • Approximately 4,500-5,500 t of scrap were booked, including 2,000-2,500 t of HMS (80:20) scrap from Bahrain, Brazil, Ireland and West Africa at $365-370/t. Additionally, 1,000-1,500 t of Turning Boring scrap were booked from Malaysia and Philippines at $325-335/t. There was also a mix of HMS,PNS and LMS, sourced from Yemen and Australia, at $365-380/t.

Ferro Alloys

  • Silico Manganese: Domestic silico manganese prices in India have risen this week due to delayed deliveries, recent smelter production cuts, and higher support from imported manganese ore, contributing to the price increase. Prices of the 60-14 grade rose by INR 1,100/t ($13/t) w-o-w to INR 68,300-69,200/t ($796-807/t) exw in Raipur, Durgapur, and Visakhapatnam.

  • Ferro Manganese: Indian ferro manganese (HC 70%) prices rose by INR 2,000/t ($23/t) to INR 72,900/t ($850/t) exw in Raipur and rose by INR 2,100/t ($24/t) to INR 72,900/t ($850/t) exw in Durgapur. Prices rose w-o-w as majority of the smelters in the key producing regions curtailed production.

  • Ferro Silicon (FeSi: 70%) prices remained steady with a slight rise of INR 100/t ($1/t) w-o-w to INR 104,000/t ($1,212/t) exw-Guwahati on 3 January. While Bhutan's prices also edged up by INR 100/t ($1/t) to INR 104,100/t ($1,214/t) exw. Prices were stable, as market activities were muted in expectation of this month's price announcement from Bhutan. A slight rise in price may be seen as yesterday Bhutan announced its prices at INR 104,000/t ($1,212/t) levels.

  • Ferro Chrome: Indian high-carbon ferro chrome (HC60%, Si: 4%) prices inched down by INR 450/t ($5/t) to INR 102,100/t ($1,189/t) exw-Jajpur. Prices dropped as gaps widened in bids and offers following lower bids in key auctions and January tender price announcement from Tsingshan. Further price clarity can be assessed after the upcoming Vedanta-Facor's ferro chrome auction on 6 January.

Semi-Finished

  • Indian semi-finished steel prices witnessed mixed trend as per BigMint's assessment. Domestic billet prices showed divergent trend in some locations showed increase of INR 100-500/t across regions while, some location showed downward trend by INR 200-500/t. However, sponge iron prices showed mixed trend, almost all key locations increased by INR 100-400/t, with a major increase of INR 400/t seen in the Raipur market. While Rourkela and Chennai market showed downtrend by INR 100/t and 300/t.

  • Tata Metaliks has reduced prices of foundry-grade pig iron by INR 1,000/t ($12/t) due to sluggish demand. Post-revision, prices stood at INR 37,500/t ($437/t) exw-Kharagpur.These prices are applicable for the Kolkata and Howrah markets. The price adjustment reflects the current subdued market conditions and demand trends.

  • SAIL-Bokaro Steel Plant (BSL) auctioned 14,000 t of steel-grade pig iron on 1 Jan'25, with the entire quantity booked at an average price of INR 31,350/t exw. In the previous auction on 26 Dec, 7,000 t of steel-grade pig iron were sold at an average price of INR 30,900/t exw.

  • SAIL-Rourkela Steel Plant (RSP) held an auction on 31 Dec'24 for 3,000 t of steel-grade pig iron. The entire volume on offer was booked at an average price of INR 32,800/t exw. Previously, on 16 Dec, RSP auctioned 5,000 t of steel-grade pig iron, with the entire quantity sold at an average price of INR 32,100/t exw.

  • Indian DRI (Direct Reduced Iron) export offers increased by $2 for CPT Raxaul, reaching $352/t while, CPT Benapole offers increased by $5 stood at $354/t.

Finished Long Steel

  • IF-rebar:India's induction furnace route finished long steel prices observed mix trend w-o-w. Sellers were trying to keep the prices on higher side but due to new year holidays and unclear trend of raw material, buyers were cautiously procuring material at increased prices which results bookings slowed down later in the week. Market observing 8-10 days of inventories in the mills varying location wise. As per market participants prices are likely to remain volatile in the near term.

  • On a weekly basis, in rebar steel prices witnessed variation in the range of INR 100-500/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 42,000-42,400/t exw Raipur, INR 46,600-47,200/t exw Jalna.

  • Trade reference price of heavy structural steel for base size 150mm channel stands at INR 44,100-44,400/t exw Raipur.

  • Trade reference prices of wire rod hovering at INR 43,200-43,700/t ex Raipur.


  • BF-rebar: Trade-level blast furnace (BF) rebar prices witnessed an uptick across markets amid improvement in trade activities in some regions. In addition, mills are mulling hike in rebar prices in January. This week, rebar prices (12-32mm) in the trade segment rose by INR 300/t w-o-w to INR 52,600/t exy-Mumbai, excluding 18% GST.

  • In the project segment, prices were hovering around INR 49,500-50,500/t FOR Mumbai.

Flat Steel

  • Trade-level HRC and CRC prices remained stable. After the safeguard investigation began, higher price offers surged but failed to gain traction over time due to buyer resistance. Transactions were limited to small volumes at lower price levels, pushing prices down.

  • In north India, elevated prices persisted due to local shortages, but this trend was not seen in other regions, where higher prices were unsustainable.

  • Bulk imports of HRC and plates have declined for four consecutive months, reaching 485,449t in December, with an additional 171,453t expected by early January, according to BigMint data.

  • Indian HRC exports slowed in December, with significant declines towards the month's end. Offers to the Middle East dropped slightly, stabilised, then fell sharply before the holidays. The European market was quiet due to the holiday season, while Indian exporters faced stiff competition from China and Japan.

 

4 Jan 2025, 14:04 IST

 

 

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