In context to Flat steel (HRC), the manufacturers have maintained offers, meanwhile in traders market it plunged by INR 500-1,000/MT (USD 7-15) in current week.
As per participants, the mills in domestic market are under selling pressure due to seasonal limited activities in Finished products. Thus, they are assuming - local steel prices to remain under pressure with thin spot trades.
Iron ore and Pellets: Odisha`s merchant iron ore miners have increased iron ore prices by INR 300/MT on both lumps and fines.
Odisha Mining Corporation (OMC) has raised iron ore fines base prices by INR 50-190/MT in e-auction conducted on 09 July`18. Increasing Royalty, logistics bottlenecks prevailing in eastern India and reduced rake availability for transportation of iron ore are collectively responsible for iron ore price hike this week.
Domestic pellet offers in India have increased sharply this week by INR 100-300/MT. Jindal Steel & Power (Barbil) has raised pellets offers by INR 300/MT W-o-W. Further, Jindal SAW (Rajasthan) has increased pellet prices by INR 200/MT this week.
Sources reported - KIOCL (Southern India) has recently concluded a deal of 50,000 MT pellets of Fe 64% grades (less than 2% alumina) at around USD 117-118/MT, FoB India for July shipment. Demand for Indian pellets in China continues to remain strong over less Indian supplies.
Scrap: Indian imported scrap market remained subdued for yet another week over declining domestic scrap prices which made steel mills to prefer it over costlier imported scrap along with fluctuating currency and heavy monsoon as the major concerns.
Due to sharply fallen demand in the global market, offers have come down by USD 5-7/MT on W-o-W basis, however hardly any trade deals have confirmed. UK and USA origin containerized Shredded scrap is being offered at USD 377-382/MT, CFR. Offers for HMS 1&2 (80:20) from UAE stood at USD 350-355/MT while HMS 1 assessed at around USD 355-360/MT, CFR. West African HMS scrap assessed at USD 330-340/MT, CFR Nhava Sheva.
Domestic scrap prices have tumbled down by significant of INR 2,500-3,000/MT (USD 36-44) in last 3-4 weeks as against imported, on falling demand in domestic finish steel and billet markets.
Coal: Australian Coking coal spot export prices stood range bound this week amid thin trading activity in the Chinese market, with buyers expecting more downside for domestic met coke prices. Moreover, stricter port restrictions in the northern and southern regions are creating ambiguity in production planning for the Chinese steel makers. Internationally, further price increases are unlikely in the near term due to possible cuts in steel and coke production over environmental concerns in China. Moreover, the Indian market would remain relatively subdued with the onset of monsoon.
Import offers for the premium HCC are assessed at around USD 199/MT FOB Australia, which amounts to around USD 212.95/MT CNF India.
Semi Finished: Indian Billet offers slashed by around INR 500-1,800/MT (USD 7-26) across the country due to weak demand amid increased supply. Inductions in Raigarh, Central India have resumed operations after a spam of 2 month`s with the full fledged power supply by Jindal Steel & Power Ltd (JSPL). This has led to additional supply of Ingot/Billets in Central & North-east regions.
Further, Sponge iron offers fluctuates slightly over seasonal low production amid less availability of railway rakes - resulting scarcity of raw materials with the producers.
-- Indian sponge iron export offers drop by USD 10-15/MT W-o-W, price assessment for 78-80 FeM sponge lumps (export grade) stood at USD 340/MT CPT Benapole (dry land port of Bangladesh & India) and USD 360/MT CFR Chittagong, Bangladesh.
-- Indian induction furnaces conversion spread (margins) slumped near about INR 3,500-4,000/MT (USD 50-58) in last one month due to sharp fall in billet prices amid stability in sponge iron. And the margins of Ingot/Billet producers also hit 3 month`s low, as per data maintained by SteelMint.
-- Indian induction grade billet export offers to Nepal hovering at USD 490/MT ex-mill, Durgapur & USD 480-485/MT ex-mill Odisha, Eastern India. The prices declined about USD 15/MT, W-o-W as against last week offers.
-- In recent, India’s Vizag Steel concludes 150*150 mm bloom (2 rakes) export tender to Nepal at around USD 510-515/MT (ex-mill). while earlier it is heard to have concluded the 20,000 MT bloom (150*150mm) at around USD 510-515/MT, FoB India.
-- Neelachal Ispat has reduced pig iron prices for steel by INR 600/MT (USD 9) & Foundry grade by around INR 1,000/MT (USD 15) on 6th July.The latest offers for Steel (N1) grade material are assessed at INR 27,900/MT (USD 405) & for Foundry (N2) grade at INR 28,500/MT (USD 414), ex-Cuttack, Odisha.
-- Tata Metaliks, India`s one of the largest foundry grade pig iron manufacturer has reduced its prices by INR 800/MT (USD 12) & fresh prices reported at INR 33,000/MT, ex-Kharagpur, East India, for high silicon, foundry grade Pig iron.
-- Steel Authority of India - a government of India company has floated three different export tenders for 18,000 MT Pig Iron, 5,000 MT Wire Rod and 5,000 MT Structure. The due date for submission of bids is 10 July’18.
-- 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 prices range prices down upto INR 1,800/MT commodity wise and the reduction in prices have been observed due to low seasonal demand amid conscious buying from stockiest & end user segment.
As per market participants, low buying inquiries & thin trade volumes followed by pessimistic sentiments and unclear directions as commodity wise the price range fall by more than INR 4,000/MT on monthly basis.
Further, as per trade participants, minor amendment may get land and selling pressure could absorb as per current trends.
-- Rathi Steels based in North region decrease the price range by around INR 2,200/MT on week basis and currently offering at INR 41,600/MT, 12 mm, Ex-work, & excluding GST.
-- Indian large steel makers - SAIL, RINL (Vizag Steel) & JSW Steel have rolled over Wire rod prices for July deliveries, as per sources. The latest price for Wire rod 5.5 mm by these steel makers hovering at
INR 45,000-45,500/MT (USD 654-660) for South region - Bangalore, excluding 18% GST.
Finish Flat Steel: Major Indian steel manufacturers have announced roll over in flat steel prices for July deliveries owing to weak purchases along with dull demand.
A trader based in Delhi mentioned that,”Buyers are reluctant to make their purchase now and are waiting for prices to get corrected further in traders market.Also liquidity issues continue to prevail in few regions leading to dull trades”.
Meanwhile, on the other hand prices of HRC have came down this week upto INR 500-1,000/MT in traders market. As per SteelMint price assessment, currently trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 45,500/MT (ex-Mumbai), INR 45,700/MT(ex-Delhi) and INR 46,000/MT(ex-Chennai).
In few regions like Delhi and Ludhiana CRC prices decline by 1,500-2,000/MT over dull trades. Currently trade reference prices for CRC (IS513) 0.9mm is hovering at INR 50,500/MT (ex-Mumbai), INR 51,000/MT (ex-Delhi) and INR 51,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.
Major Indian steel mills have shifted their interest to HRC exports majorly to South East Asian nations owing to rupee depreciation and higher gains from global market. Mills have booked over 130,000 MT HRC for export to SE Asian nations and Middle-East in a month’s time.
Indian Raw material and Finished Steel reference Prices as on 7 July 2018 (Week 27)
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices as on 7th July`18
Prices in USD/MT
Source: SteelMint Research