Indian Steel Market Weekly Snapshot

Indian steel prices moved up in week-33 (13-18 Aug’18). Market sentiments remained on positive side as in last week with rally in pellet export prices as well as improved trades.

Iron ore miners have kept the prices unchanged for this week, however, the surge in pellet prices may push domestic iron ore prices. Production has remained low amid monsoons.

Domestic pellet offers in India have increased sharply this week on higher realization in exports over improved demand from overseas buyers amid less seaborne pellet supply have supported price uptick in the domestic market.

In Durgapur (eastern India) reference pellet price assessment stands at INR 7,100-7,300/MT (delivered) this week, up significantly by around INR 400-600/MT against last week`s assessment at INR 6,700/MT. Central India (Ex-Raipur) pellet offers have also increased significantly and assessed at INR 7,200-INR 7,400/MT. Inline southern India (Bellary) assessment is at INR 6,600-6700/MT, up by INR 100-200/MT.

According to market sources, an east India based pellet maker has recently concluded pellet export deal of 50,000 MT regular grade pellets at around USD 145-146/MT, CFR China for September shipment, up by USD 15/MT W-o-W.

Scrap: Following a sharp fall in global scrap prices and a slowdown in purchases ahead of EID holidays, Indian imported Shredded scrap prices have plunged in recent thin trades heard. however, depreciation of Indian Rupee against USD kept buyers hesitant to buy actively. Domestic scrap remains cheaper over imported despite inch up in prices in this week.

Price assessment from UK and Europe based containerized Shredded stands at USD 345-352/MT, CFR Nhava Sheva. Offers from UAE for HMS 1&2 (80:20) heard stable at USD 335-340/MT and for HMS 1 at around USD 340-345/MT, CFR. Minor trades for West African HMS heard traded in the range of USD 315-330/MT, CFR in containers depending on quality of scrap and loading ports.

Coking coal prices remained range-bound during the week on weak buying interest and limited restocking demand from Chinese end-users, as most steel mills were still subjected to production cuts due to environmental checks, especially in northern China. Moreover, concerns over the escalating China-US trade tension has slowed down seaborne trading activity in the country. However, the emergence of long vessel queues at various shipping ports in Queensland has partially supported the fob Australia prices. In India, met coal prices are expected to move up further as the monsoon season draws to an end. Latest prices for the Premium HCC grade are assessed at around USD 183.75/MT FOB Australia and USD 197.80/MT CNF India.

Semi finished steel prices showed improvement on weekly basis, domestic Billet offers rise by INR 1,000-2,500/MT & Sponge by INR 600-1,500/MT over increased raw material prices amid volatile domestic trades.

-- Indian induction grade billet export offers to Nepal hovering at USD 495/MT ex-mill, Durgapur, Eastern India. The prices inclined about USD 5-10/MT, W-o-W as against last week offers.

--.Vizag Steel concludes billet (90*90mm) export tender to Nepal at around USD 503/MT, ex-mill. Indian mills likely to turn active for billet export amid depreciating Indian currency.

-- Indian sponge iron export offers to Bangladesh for lumps of grade FeM 78-80, recorded at USD 340-345/MT CPT Benapole (dry land port of Bangladesh & India) and USD 360-365/MT CFR Chittagong, Bangladesh.

-- MMTC cancels Pig iron export tender of 30,000 MT owing to high expectations, whose due date for submission of bids was on 10 Aug’18 & . And recently re-issues export tender of 30,000 MT non-alloy Pig Iron on behalf of NINL. The due date for submission of bids is 28 Aug’18

-- SAIL`s auction held today (18-Aug) to sale about 4,000 MT Pig iron from its Rourkela Steel Plant (RSP), has received good response as total allotted quantity have been sold out with increase bid prices. The company has quoted base prices at INR 28,400/MT, however the auction get conclude at around INR 28,800-28,900/MT ex-plant, as per participants.

-- SteelMint`s Pig iron export price assessment stood at USD 375-380/MT FOB Brazil, USD 380-390/MT FOB Black Sea & USD 370-375/MT FOB India.

Indian Finish Long observed improved demand and price range moved up to around INR 2,000-2,200/MT commodity wise on weekly basis.

Adequate quantities have been booked since from mid week in particular regions except few in southern region as heavy rains disrupt supply movement up to certain level.

Further as per market participants finish long steel prices should not see any major changes for near term till semi finish price range exists and few are awaiting dispatch of booked quantities in next 4-5 days.

Central region based heavy Structure manufacturers reduced discount level to INR 600-800/MT which was earlier hovering around INR 800-1,000/MT and the discount range based on booking quantity and current trade reference price at INR 39,500-39,700/MT (I Beam – 200*100, IS 2062), Ex-work, & excluding GST.

Rathi Steels based North region increase the price range by around INR 2,350/MT on week basis and recent offering hovering at INR 41,500/MT, 12 mm, Ex-work, & excluding GST.

-- Indian Wire rod Prices both in Raipur and Durgapur market surge sharply by INR 1,200-1,800/MT in a week on account of rise in Billet prices and strong demand. Currently, prices of wire rod in Durgapur and Raipur now at similar level in the range of INR 39,400-39,700/MT for 5.5mm material, ex-works & excluding GST.

-- Wire Rod trade discount offered by suppliers in Raipur have reduced from last week which was in the range of INR 800-1,000/MT. In the current week, discount hovers at around INR 400-600/MT.

-- Currently rebar (12-25 mm) price assessed at INR 38,300-38,700/MT Ex- Jalna, INR 37,600-37,800/MT Ex- Raipur, INR 40,000-40,400/MT Ex-Chennai. All prices are basic & excluding GST.

Finish Flat Steel: India`s domestic HRC and CRC trade activities have continued their upward momentum this week too. Market participants highlighted that owing to resumption of buying inquiries from last week onwards prices have remained firm. However in few markets like Faridabad etc prices have moved up this week by INR 500/MT.

Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 45,500/MT (ex-Mumbai) & INR 45,000-45,200/MT(ex-Delhi).The prices for CRC (IS513) 0.9mm is hovering in the range of INR 50,000/MT (ex-Mumbai) & INR 49,500-51,500/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

As per sources, a major Indian mill has recently booked commercial grade HRC (2mm) cargo for export to Europe.at around USD 645/MT, CFR Europe. Indian steel mills used to actively offer HRC for export to European nations but owing to safeguard investigations going on, Indian mills had shifted their interest to SE Asian nations and Middle East in last 3-4 months. But with announcement of imposition of import quotas on steel products, Indian mills have again started exploring European market.

Indian Raw material and Finished Steel reference Prices as on 18 August 2018 (Week 33)

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

Indian Export Reference Prices as on 18th August`18