According to Mining News Pro - This week prices of Semis (Billet) & Finished long steel products have declined by INR 100-900/MT (USD 1-12) through the mid sized mills. While Finished Flat steel prices moderate on weak demand.
IRON ORE and PELLETS
Odisha`s merchant iron ore market has resumed some trades this week. Few Odisha based major merchant miners are reported to have made bookings of over 600,000 MT of iron ore fines (Fe 62.5 and 63%) at INR 2,200-2,300/MT ex-mines basis (including Royalty, DMF & NMET).
-- PELLEX moved down marginally by INR 50/MT to INR 6,650/wmt (DAP Raipur). No pellet deal reported in this publishing window. Raipur based pellet makers decreased offers by INR 200/MT to INR 6,500/MT Ex-plant.
-- Jindal SAW has increased pellet offers by INR 150/MT to INR 8,650/MT as against INR 8,500/MT (Delivered Kandla). Jharsuguda based pellet maker has declined offer by INR 100/MT to INR 5,900/MT Ex-plant. Bellary based major pellet maker sold around 20,000 MT this week at INR 7,000-7,200/MT Ex-plant.
-- An Odisha (eastern India) based pellet maker has concluded two pellet export deal for 50,000- 55,000 MT each of Fe 64% grade pellets with 3% Al this week. The deal was concluded at around USD 118/MT, CFR China for early April shipment.
COAL
Seaborne coking coal prices fell this week, after a new booking concluded on Thursday at a lower level basis depressed bids and offers in the Asian spot market.
In China, the spot seaborne market remained relatively quiet as buyers adopted a cautionary stance expecting seaborne prices to soften as domestic coal supply improved.
Seaborne prices are under pressure due to weak demand as several end-users are struggling with staggeringly low profit margins. Nevertheless, it is also possible that some steel mills need to restock and such procurement activities could support spot prices or at least keep them steady in the short run.
-- Latest offers for the Premium HCC grade are assessed at around USD 159.50/MT FOB Australia, USD 171.50/MT CNF China and USD 170.90/MT CNF India.
FERROUS SCRAP
Imported scrap offers to India witnessed a sharp fall this week by around USD 10/MT, with limited buying interest amid less demand and Holi holidays.
-- Shredded 211 to India from USA and UK/Europe stood at USD 305-307/MT CFR Nhava Sheva, down by around USD 10/MT against last week’s report. UAE origin HMS 1 is being offered at USD 295-300/MT CFR, while HMS 1&2 from the same origin reported at USD 285/MT CFR, with limited bookings observed at these levels.
FERRO ALLOYS
-- Silico Manganese prices fell in both Raipur and Durgapur due to dull demand and lower imported Manganese Ore prices.
-- Ferro Manganese prices remained stable amid limited production and moderate demand in both the domestic and export market.
-- Prices of Ferro Chrome fell amid depreciation of Indian currency. Producers are favouring exports, however, buyers are negotiating for much lower prices in the domestic market.
-- Indian Ferro Silicon prices fell amid dull demand in the domestic market. Meanwhile, the export market remains sluggish due to the spread of deadly Coronavirus in several countries.
SEMI FINISHED
Indian Billet trades slow-down this week as prices slump by INR 100-800/MT owing to poor off take of finished steel goods. In these period major fall of INR 700-800/MT in billet seen in North & Eastern India.
Similarly, Sponge iron offers dropped by INR 200-500/MT W-o-W following significant fall in Billet prices & strong supply.
-- Indian Sponge iron export deals concluded to Bangladesh for over 10,000 MT with reduced price by USD 3/MT to USD 280/MT CPT Benapole (dry port of India & Bangladesh), this is equivalent to USD 295/MT CFR Chittagong, Bangladesh.
-- Medium scale mills export offers to Nepal drop sharply by USD 10-15/MT W-o-W and assessed at around USD 380/MT for Billet (100*100 mm) & USD 425-430/MT for Wire rod, ex-mill at Durgapur.
-- In Feb’20, bulk billet/bloom exports from India were recorded at 82,681 MT drop by 40% M-o-M as against 137,600 MT during Jan’20.
-- SAIL has floated an export tender for 18,900 MT prime mild steel non-alloy concast blooms (size 200x280 mm) from the IISCO steel plant. The last date for bid submission is 09 Mar’20 by 16:00:00 HRS [IST].
-- Vizag Steel has invited spot sale notice for export of 30,000 MT bloom (size 150x150) in ocean market. The last date of shipment is 26th Mar`20.
-- TATA Metaliks Ltd has cut its Foundry grade pig iron price by INR 700 (USD 10)/MT to INR 31,300 (USD 425)/MT ex-plant, Kharagpur, eastern India.
-- Jindal Steel has reduced steel grade pig iron price by INR 300/MT to INR 27,500/MT ex-plant, Raigarh.
-- RINL`s PIG IRON auction for 1,500 MT received bids at INR 25,500-600/MT (EXW-Vizag), entire qty sold, as per market sources.
-- Central India based SAIL`s BSP reduced steel grade Pig Iron price by INR 500/MT to INR 27,500/MT EXW-Bhilai.
-- SAIL has reduced base price in pig iron auction by INR 700/MT to INR 26,300/MT EXW-Rourkela. Entire offerd quantity of 1,800 MT got booked at INR 26,300-26,350/MT EXW-Rourkela.
FINISH LONG
Indian finished long steel prices through the medium and small scale mills consistently remain contracted this week which has been absorbed in most of the locations except Jalna market where price range slightly up by INR 100-200/MT.
Whereas weekly assessment evaluates rebar prices plunged by INR 200-900/MT due to poor lifting and specific region based trade associates shared that demand might remain range bound without any major correction amid improving raw material prices.
-The trade reference rebar prices (12-25 mm) through midsized mills are assessed at INR 32,500-32,800/MT Ex-Raipur, INR 36,000-36,300/MT Ex-Jalna & INR 34,800-35,200/MT Ex-Chennai.
Further, positive step in this week is noticed from the State-owned large mills like RINL & SAIL along with specific private large mills that have raised rebar prices by INR 500-1,000/MT for Mar’20 deliveries.
-The trade reference rebar prices (12 mm) through large scale mills assessed at INR 40,000-40,500/MT Ex-Mumbai & INR 40,000 Ex-Chennai.
-Raipur based heavy structure manufacturers have maintained trade discount by INR 200-400/MT and current trade reference price stood at INR 35,200-35,600/MT (200 Angle) ex-work.
-Trade discounts in Raipur wire rod is currently at INR 500-600/MT and trade reference prices stood at INR 31,700-31,900/MT ex-Raipur and INR 31,600-32,000/MT ex-Durgapur, size 5.5 mm.
FINISH FLAT
Indian HRC prices in the trade segment remain moderate on sluggish demand and limited inquiries prevailing in trade market.Trade participants shared recent increase in HRC & CRC prices by major steel manufacturers have not yet absorbed in the market over thin trades.
-- Current trade reference prices for HRC (2.5-8 mm, IS2062) on a weekly premise stands at INR 38,000-38,500/MT (ex-Mumbai), INR 38,250-38,500/MT (ex-Delhi), and INR 39,000-40,000/MT (ex-Chennai). Prices mentioned above are basic, and extra GST@ 18% will be applicable.
-- Current trade reference CRC (0.9 mm, IS 513) prices on a weekly premise assessed at INR 44,500-45,000/MT (ex-Mumbai), INR 42,200- 45,000/MT (ex-Delhi), and INR 44,500-46,000/MT (ex-Chennai). Prices mentioned above are basic, and extra GST@ 18% will be applicable.
-- In the beginning of the month, major steel manufacturers have raised HRC & CRC prices by INR 500-750/MT in domestic market.
