Indian Steel Market Weekly Snapshot

According to Mining News Pro -Further, the export inquiries also weaken from Nepal as most of mills in nation will remain shut down during the Dussehra and Diwali festival. Hence, the re-rollers in Nepal have limited their bookings. The Nepal contributes about 40-50% of total Billet exports from India.

As per assessment, the Semis and Finish long steel prices slump by around INR 500-1,000/MT (USD 7-14). However the Flat steel prices were firm over subdued trade activities.

Iron ore market hasn’t seen much movement this week as the Odisha mining giant - Essel mining was reduced the iron ore offers last week by INR 300/MT in both lumps and fines for both of its mines, however, rest miners kept unchanged.

Domestic pellet prices in India have observed a mixed response this week. Central and Eastern India based pellet makers have reduced the offers this week. In Durgapur (eastern India) reference pellet price assessment has decreased and stands at INR 8,100/MT (delivered) against last assessment INR 8,200/MT (delivered) at the beginning of this week. Central India (Raipur) pellet price assessment stands at INR 8,300/MT against the last assessment INR 8,500/MT towards the beginning of this week.

The pellet export assessment has softened this week owing to rising iron ore fines prices. As per market sources report to SteelMint, Indian pellet export prices are assessed at around USD 147-148/MT, CFR for the regular grade (3% alumina) against last assessment USD 150/MT, CFR China.

Indian scrap importers cautious on currency depreciation - Depreciated INR against USD remains a cause of concern for Indian scrap importers resulting in limited bookings this week. Prices in recent deals seem to have corrected on declined demand temporarily but after local festival of Navratri demand likely to pick up again at stable prices in India. Local scrap being cheaper remains a preference over imported.

West African HMS 1&2 in containers traded at around USD 325-330/MT, CFR Chennai while offers assessed in the range of USD 330-335/MT, CFR Nhava Sheva. While offers for UK and USA origin Shredded scrap in containers heard stable at around USD 360/MT, CFR Nhava Sheva. Offers from Dubai suppliers for HMS 1 heard at around USD 340-345/MT, CFR and Offers for HMS 1&2 (80:20) assessed at around USD 335-340/MT from UAE, UK and other origins.

Australian coking coal prices inched up slightly this week as trades were done at higher levels following the emergence of higher offers during China’s weeklong holiday marking its national day.

In China, market activities remained stalled as buyers are still holding back after the holidays, with no transactions heard for seaborne coking coals.

Moreover, with the Chinese yuan depreciating again, this may act as a deterrent to import demand.

However, with the onset of winter in China mills may look to restock materials.

Latest prices for the Premium HCC grade are assessed at around USD 217/MT FOB Australia and USD 233.85/MT CNF India; while current offers for the 64 Mid Vol grade are assessed at around USD 182.15/MT FOB Australia and USD 199/MT CNF India.

Semi finished steel: Indian Semi finished prices slump over disruption of demand-supply due to limited demand & festival season.

As per SteelMint assessment, the domestic Sponge iron & Billet prices have declined by INR 200-1,200/MT (USD 2-16). In this period major fall in Billet seen in Ahmedabad & Hyderabad by INR 1,000-1,200/MT on limited inquiries.

-- Indian induction grade billet export offers to Nepal hovering at USD 455-460/MT ex-mill, Durgapur, Eastern India. As per market participants, purchase inquiries from Nepal`s re-rollers have weakened and there are further indications of slow down due to festive holidays & seasonal weak demand in the country.

-- Indian sponge iron export offers to Bangladesh for lumps grade FeM 78-80, recorded at USD 335/MT CPT Benapole (dry land port of Bangladesh & India) and USD 355/MT CFR Chittagong, Bangladesh.

-- Bharat Heavy Electricals Limited (BHEL) is an integrated power plant equipment manufacturer has invited tender for purchase of 8,700 MT Beams at Ranipet, Tamil Nadu. The due date of bid submission is 30 Oct`18 at 14:00 hrs IST.

-- Indian state owned steel maker Steel Authority of India Ltd (SAIL) had scheduled an auction on 8th October for sale of about 1,900 MT steel grade pig iron from its Rourkela Steel plant (RSP). The base price of the tender was at INR 30,000/MT and only 700 MT quantity have been sold out at the same price.

-- Jindal Steel is offering Panther shots (Granulated pig iron) at INR 28,500-28,700/MT & Pooled iron at INR 27,500-27,700/MT Ex-plant, Angul, Odisha.

-- SteelMint`s Pig iron export price assessment stood at USD 385-395/MT FoB India, USD 360-365/MT FoB Brazil and USD 365-370/MT FoB Black sea.

Indian Finish Long steel market remained dull on weekly basis, prices shrunk up to INR 1,000/MT (TMT & Structure) and inventory level have increases slightly, this leads to rise selling pressure with the producers in particular regions.However, participants were having some trade volume in beginning week but it couldn’t stretch far ahead and price range initiated to get mild.

-- Further, Central India, Raipur based heavy structure manufacturers have slightly increased discount level to INR 800-1,000/MT as per quantity and current trade reference price hovering at INR 39,500-39,900/MT (200 Beam).

-- Wire rod trade discount offered by manufacturers/suppliers in Raipur increased compare to last week which is now in the range of INR 800-1,300/MT.

-- Currently trade reference rebar (12-25 mm) price assessed at INR 38,300-38,600/MT Ex- Jalna, INR 37,400-37,700/MT Ex- Raipur, INR 40,700-41,100/MT Ex-Chennai. All prices are basic & excluding GST.

As per market participants, domestic steel players have not announced any price hike in long product in the current week. Although there are strong rumours that few large players are most likely to increase long products prices in the coming week. The rebar prices by the large scale producers stood at INR 44,100-44,600/MT ex-Mumbai, size - 12 mm & excluding GST. Also, shortage of material still exist in the market.

-- The Indian Govt has extended anti dumping duty on imports of Ductile Iron Pipes from China PR, falling under tariff of 73030030 & 73030090 for the period of 6 month`s (till 9th Apr`19).

Finish Flat Steel: With Indian flat steel prices hitting all time high after price hike announcement by major mills in the beginning of the month,trades have remained subdued.Trade participants reported limited trade volumes at high prices owing to liquidity issues.

This week traders in domestic market have kept HRC prices firm with no major changes over lackluster demand and fewer trades happening in domestic market.

The current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 47,500/MT (ex-Mumbai) & INR 47,500-47,600/MT (ex-Delhi). The prices for CRC (IS513) 0.9mm is hovering in the range of INR 53,500/MT (ex-Mumbai) & INR 53,000 - 54,500/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

Indian steel manufacturers raised HRC prices on rupee deprecation over costlier imports along with higher production cost. On the contrary thin trades and fewer inquiries resulted to difficulty in absorbing higher HRC,CRC prices in traders market.

Indian Raw material and Finished Steel reference Prices as on 13 October 2018 (Week 41)

Prices are Ex-works, Exclusive of GST at 18%

Indian Export Reference Prices as on 13th October`18

Prices in USD/MT
Source: SteelMint Research