As per SteelMint assessment, during the week prices of Billet have declined by INR 300-1,000/MT (USD 4-15) & Long steel - Rebar prices slump upto INR 2,000/MT (USD 29) in across major producing markets.
Inline Flat steel, the prices registered fall of about INR 500/MT (USD 7) in traders market over less buying interest.
Iron ore and Pellets: Iron ore prices in domestic market remained unchanged this week. Domestic pellet offers in India have decreased this week by INR 50-300/MT amid fall in P-DRI prices. However, in western India India pellet offers have remained stable. Pellet prices in Durgapur have decreased by INR 300/MT W-o-W. Southern India (Bellary) based pellet makers have decreased prices INR 100/MT. Central India (Raipur) pellet offers have remained stable this week.
As per the sources Indian pellet export price assessment stands at USD 116-118/MT, CFR China up by USD 4-6/MT, CFR China against last week. According to the market participants report to the SteelMint, Chinese mills are actively looking for Indian pellets cargoes due to strict govt. norms imposed on steel mills in Northern China.
Scrap: Indian importers have turn absolutely silent for scrap imports over unfavourable depreciation of INR against USD making imports costlier. Sharp plunge in domestic scrap prices by INR 600-800/MT on W-o-W basis has made steel mills to prefer it over costlier imported scrap.
Price assessment of UK and USA origin containerised Shredded scrap remain stable at USD 382-385/MT, CFR. But HMS 1&2 prices have moved down by USD 5-10/MT on W-o-W basis. Offers for HMS 1&2 (80:20) from UAE stood at USD 355-360/MT and HMS 1 at USD 365-370/MT, CFR.
West African and European HMS scrap was being offered in the range of USD 340-350/MT, CFR. Participants remain awaiting clear price trends in the global market in upcoming days and few steel mills are working with stocks available in hand seeking for the stability of INR against USD.
Coking Coal: Seaborne coking coal prices fell over the past week as sentiment in the Chinese market weakened with buyers awaiting correction. Offers for seaborne cargoes rose to their highest in over two months last week, primarily owing to uncertainties over Australian supply arising from changes made by Queensland’s rail freight operator Aurizon to its operational and maintenance practices. Nevertheless, coking coal demand has been underpinned by the resumption of full-fledged steel production in China. Import offers for the premium HCC are assessed at around USD 198.50/MT FOB Australia, which amounts to around USD 212.40/MT CNF India.
Semi Finished: Indian Billet offers fall in the range of INR 300-1,000/MT (USD 4-15) due to slow off take of finished goods. In these period major fall of INR 1,000/MT in billet seen in Jalna, Western India. While Sponge offers fluctuated by INR 200-500/MT (USD 2-7) Week-on-Week owing to seasonal effect.
SAIL has floated an export tender for 10,800 MT billets from its Durgapur Steel plant, whose due date for bid submission was 26 Jun’18. And as per the sources, the company was eyeing for levels of USD 530/MT, FoB India. Amid higher bid expectations, the company may cancel the tender or conclude similar quantity for export to Nepal owing to better realisation.
-- Indian billet exporters interest has increased after currency dropped to INR 69 per USD on falling crude oil prices in global markets. While induction grade billet (100*100 mm) export offers to Nepal drop by USD 20/MT W-o-W & assessed at USD 505-510/MT (ex-mill at West Bengal), equivalent to USD 530-535/MT CFR Nepal (Raxaul border).
Sources reported few deals for sponge iron exports (78-80 FeM, lumps) at an average price of USD 355/MT CPT Benapole (dry land port of Bangladesh & India) and USD 375/MT CFR Chittagong, Bangladesh.
Neelachal Ispat has reduced pig iron prices by INR 400-500/MT (USD 16.5) on 25th June. The latest offers are assessed at INR 28,500/MT (Steel grade) & INR 29,500/MT (Foundry grade), ex-Cuttack, Odisha. Further, MMTC has floated export tender of 40,000 MT non-alloy Pig Iron on behalf of NINL. The due date for submission of bids is 09 July’18.
Recently, NINL produced 3105 MT hot metal on June 28, 2018 to record the highest single-day production since inception. The Kalinga Nagar based company also registered the highest single-day Pig Iron production of 2935 MT on the same day.
SAIL’s Rourkela Steel Plant tender held on 25th June`18 to sell about 8,500 MT steel grade Pig iron. The base price of the tender was at INR 28,100/MT and 6,500 MT quantity have been sold out.
SteelMint`s Pig iron export price assessment stood at USD 380-390/MT FoB India, USD 380-385/MT FoB Brazil and USD 380-390/MT FoB Black sea.
Finish Long Steel: Rebar have been observed sluggish demand in overall region with filtered buying inquiries and loosing semi finish (Ingot/billet) on unrealistic market sentiments.
Further, trade participants are hesitant to procure with uncertain directions where price range got active or slightly improved in last couple of days but finish long steel price range have shrunken by around INR 2,000/MT (USD 29) commodity wise on weekly basis.
-- Rathi Steels based in North region decrease the price range by around INR 1,000/MT (USD 15) on week basis and currently offering 12 mm Rebars at INR 43,800/MT Ex-work, & excluding GST.
-- Currently Rebar price for 12-25 mm assessed at INR 39,000-39,200/MT Ex-Jalna, INR 39,400-39,600/MT Ex- Raipur & INR 39,800-40,000/MT Ex-Chennai. All prices are basic & excluding GST.
Flat Steel Market in India continued to remain dull observing marginal price cuts in few major markets. Inactive buying and slow movement of material has kept the domestic flat steel prices under pressure.
Traders and stockiest have lowered offers as end users are reluctant to purchase the material at higher prices.
Over limited domestic trades, Indian mill have booked sufficient quantities of HRC for exports primarily to SE Asian nations.As per reports around 130,000 MT of HRC has been booked in last 20-25 days to South East Asian nations and 10,000 MT of HRC to Middle East nations in the range of USD 610-615/MT CFR basis.Also Indian major JSW Steel is likely to increase their HRC export allocations in near term.
Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 45,500/MT (ex-Mumbai), INR 46,000/MT(ex-Delhi), INR 47,000/MT (ex-Chennai). And for CRC (IS513) 0.9mm is hovering in the range of INR 50,500/MT (ex-Mumbai),INR 53,000/MT (ex-Delhi) and INR 52,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.
Thus,Indian major mills are likely to roll over flat steel prices for July shipments amid weak buying.
Indian Raw material and Finished Steel reference Prices as on 30 June 2018 (Week 26)
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices as on 30th Jun`18
