According to Mining News Pro - Indian steel prices rally during the Week 36 (1-8 Sept’18) on improve domestic demand & rising raw material prices. The producers claimed that, the consistent increase in raw materials has pushed up the input cost, also as the demand has improved, the steel prices soared.
As per SteelMint assessment, the prices of Semis products have inclined by INR 600-1,500/MT (USD 8-21) & Long steel by INR 1,200-1,400/MT (USD 16-20). Also, the Flat steel prices have increased up to INR 1,500/MT (USD 21)this week.
Iron Ore: Odisha based major merchant iron ore miners have announced a further hike in iron ore prices by around INR 500/MT in both lumps and fines. This is the third hike in the iron ore prices in last 15 days.
-- Odisha Mining Corporation (OMC) had scheduled its iron ore e-auction on 05th Sep’18 and its entire quantity (465,000) put on auction was sold out. OMC had received bids prices by INR 100-200/MT above against its base.
-- NMDC announced price revision on 7th Sept 2018. The miner had increased Baila fines prices by INR 150/MT, lumps by INR 200/MT, ROM by INR 190/MT and DR-CLO by INR 370/MT.
Central India pellet prices climbed to 6-years high at INR 9,700-9,800/MT (basic). In Durgapur (Eastern India) reference pellet price assessment stands at INR 9,000/MT (delivered) this week, increased by around INR 1,000/MT W-o-W. Most of the major pellet makers are still not offering in the domestic market which has led to the shortage of pellets in the market. Due to monsoon iron ore availability is also an issue prevailing in eastern and Central India.
-- KIOCL (Kudremukh Iron Ore Company Limited) has recently concluded a deal of 50,000 MT pellets of Fe 64% grade (less than 2% alumina) for October shipment at around USD 148/MT, FoB India - Sources.
Imported scrap offers to India hike following increase in global prices. The price assessment from UK and Europe based containerized Shredded stands at USD 360/MT, CFR Nhava Sheva, which has increased by USD 10/MT W-o-W as against the report of USD 345-350/MT last week. Amid supply tightness very few offers for USA origin containerized Shredded are even being quoted at USD 365-370/MT, CFR.
According to sources, few trades for HMS 1 from Dubai and South Africa at USD 350/MT, CFR. While offers for HMS 1&2 (80:20) heard at USD 345-350/MT from UAE and UK. Central American HMS prices heard at USD 343-345/MT, CFR Nhava Sheva.
However amid currency depreciation, importers have turned cautious booking material as imports turned costlier.
Coking coal: Seaborne premium hard coking coal prices jumped in the FOB Australia market following fresh trade, while prices for the 64 Mid Vol grade have remained stable so far this week. Notwithstanding current price levels, Chinese end-users were heard to be looking to restock at the month-end. Indian demand is expected to resume as the monsoon season is ending soon. Latest prices for the Premium HCC grade are assessed at around USD 189/MT FOB Australia and USD 203.50/MT CNF India.
Semi finished steel market showed improvement on weekly basis, domestic Billet offers surge by INR 600-1,500/MT & Sponge iron by INR 800-1,400/MT.
-- Indian induction grade billet export offers to Nepal inclined by USD 10/MT, W-o-W as against last week offers.The current offers for Induction grade Billet hovering at USD 520-525/MT ex-Mill, Durgapur, equivalent to USD 545-550/MT CFR Raxaul/Jogbani border, Nepal.
-- Vizag Steel had invited a tender for export of 10,836 MT Wire rods and 2,709 MT Billets to Nepal on 1st Sep`18, whose delivery was scheduled till 15 Oct’18 and bid due date was 5th Sept`18. As per participants the highest bid for the company`s Billet (90*90 and 75*75mm IS 2830) export tender at around USD 503-505/MT & for Wire rod around USD 593-595/MT; ex-Mill.
-- Indian sponge iron export offers increased by USD 5/MT W-o-W, Participants reported about 6,000-8,000 MT of Sponge iron export deal to Bangladesh during the week; price assessment for lumps of grade (FeM 78-80) at USD 370-375/MT CPT Benapole (dry land port of Bangladesh & India) and USD 390-395/MT CFR Chittagong, Bangladesh.
-- Indian large mills - SAIL & Vizag Steel hike Pig iron prices by INR 500/MT (USD 7) for September deliveries. The latest offer for Steel grade reported by SAIL at INR 30,200-30,500/MT Ex-Plant, Durgapur & Vizag Steel at INR 29,000/MT Ex-Plant, Vizag; excluding GST.
-- SAIL`s auction held on 5-Sep`18 to sale about 3,200 MT Pig iron from its Rourkela Steel Plant (RSP), had received good response as total allotted quantity have been sold out with increase bid prices. The company has quoted base prices at INR 29,800/MT, however the auction get conclude at around INR 30,700-30,900/MT ex-plant, as per participants.
-- Last week , Jindal Steel closed its pig iron sales as captive consumption high, however this week the plant has raised prices by INR 1,000-1,500/MT (USD 14-21) and offered Panther shots (Granulated pig iron) at INR 30,500/MT Ex-Plant, Odisha & Steel grade Pig iron at INR 32,000/MT Ex-Plant, Raipur.
-- Tata Metaliks, India`s one of the largest foundry grade pig iron manufacturer has increased prices for Sept`18 by INR 800/MT (USD 11) & reported at INR 33,800/MT (USD 478) for high silicon, foundry grade Pig iron.
-- SteelMint`s Pig iron export price assessment stood at USD 375-380/MT FOB Brazil, USD 375-380/MT FOB Black Sea & USD 380-390/MT FOB India.
Indian Finish Long steel market remained positive amid amplified raw material and the prices of Finished steel moved up to INR 1,400/MT (USD 20) commodity wise in particular regions.
-- West region (Mumbai) acquired the higher price range in rebar & structure due to maintenance works in few renowned rolling mills. The market participants in Maharashtra are assuming dull demand in coming days due to upcoming festival, this may result slight price reduction.
-- Further, the Central India based heavy structure manufacturers retain trade discount at around INR 600-800/MT as per quantity and current trade reference price hovering at INR 41,600-41,800/MT (40 Angle) and INR 41,700-42,100/MT (200 Beam).
-- Wire Rod trade discount offered by manufacturers/suppliers in Raipur have steady or slightly decreased compare to last week which is now in the range of INR 500-1,000/MT.
-- Chennai, South India based few likely to resume operations in coming week and few of them have already resume but still are less operational due to pollution concern, as per sources. The manufacturers in Chennai have raised prices by INR 500-600/MT in Semi finish & Finished steel products on short supply, improved demand and also due to high input cost on rising global scrap prices & devaluation of Indian currency.
-- Currently rebar (12-25 mm) price assessed at INR 40,300-40,500/MT Ex- Jalna, INR 39,600-39,900/MT Ex- Raipur, INR 41,600-41,800/MT Ex-Chennai. All prices are basic & excluding GST.
Indian large Mills including SAIL & RINL have increased its long steel prices by INR 500-2,000/MT (USD 7-28) for Sep’18 deliveries. Presently rebar offers by large scale manufacturers is about INR 43,000-43,500/MT ex-Mumbai & INR 43,200-43,700/MT ex-Chennai for the retail segment, 12 mm & excluding GST.
-- Offers for MS grade Wire rod (5.5mm) by large scale producers is about INR 45,500-46,0000/MT in Chennai, South India, excluding GST.
Finish Flat Steel: Major Indian steel manufacturers have increased domestic flat steel prices by INR 1,000-1,500/MT for the month of September amid higher production cost. Raw material like coking coal and iron ore prices witness up trend resulting to increased prices of flat steel in domestic market.
On other hand traders are anticipating optimistic demand in domestic market this month amid arrival of festive season. Meanwhile last month Indian currency INR stood around 68-69 and now depreciated to record low to 72 against USD. Thus devaluation of rupee against USD will lead to costlier imports in turn propels domestic manufacturers to raise prices.
-- The current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 46,000/MT (ex-Mumbai) & INR 46,500/MT (ex-Delhi).
-- The prices for CRC (IS513) 0.9mm is hovering in the range of INR 51,000/MT (ex-Mumbai) & INR 52,000-52,750/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis
Indian Raw material and Finished Steel reference Prices as on 8 September 2018 (Week 36)
| Products | Regions | Taxes | Pricesin INR/MT | W-o-W |
| PelletFe63%,6-20mm | Ex-Barbil,Loadedtowagon | GST at 5% Extra | 8,500 | +1,000 |
| Ironore6-40 mm, Fe 65% | Chhattisgarh | Excluding Royalty, DMF & NMET. GST @ 5% extra | 3,550 | +200 |
| Coking Coal, Premium HCC | CNFIndia | Prices in USD | 204 | +5 |
| ScrapHMS(80:20) | Ex-Mumbai | GST at 18% Extra | 26,800 | +1,000 |
| C-DRI80FeM | Ex-Raipur | GST at 18% Extra | 26,700 | +1,100 |
| P-DRI80FeM | Ex-Raipur | GST at 18% Extra | 25,300 | +750 |
| PigironSteelgrade | Ex-Raipur | GST at 18% Extra | 31,800 | +800 |
| Billet125*125MM | Ex-Raipur | GST at 18% Extra | 36,800 | +1,200 |
| Rebar (12-25mm) | Ex-Raipur (Medium Scale) | GST at 18% Extra | 39,800 | +1,100 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 42,100 | +1,100 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 42,300 | +1,400 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 46,000 | +500 |
| CRC (0.90mm) | Ex-Mumbai | GST at 18% Extra | 51,000 | +500 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 47,000 | +1,000 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices as on 8th September`18
| Commodity | Size and Grade | Prices | 1W | 1M |
| Pellet | Fe 64% | 143 | 138 | 120 |
| Billet | 150*150 mm | 495 | 495 | 505 |
| Pig Iron | Steel Grade | 385 | 377 | 378 |
| HRC | 2.5-8mm, IS 2062 | 593 | 593 | 585 |