Insight Details
Weekly: Indian steel market snapshot
Semi Finished
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17 Oct 2020, 16:40 IST
Steel Mint Insights

Indian spot steel trades in the secondary market remained supported this week, as prices rose sharply during the beginning of the week. However, later in the week, prices fell on account of limited inquiries.

As per SteelMint's assessment during the week-42, prices of semis & finished long steel products increased by INR 100-1,200/t (upto $17/t). In context to finished flat, domestic HRC and CRC trade prices remained stable, however the buying interest at higher prices from traders and stockists side has slightly softened.

Iron ore & Pellets

  • SAIL conducted an auction for 28,000 t iron ore fines (Fe 6.89%) from its Dalli Rajhara mines in Chhattisgarh on 16th Oct 2020. The entire quantity received bids at INR 3,120/t (Loaded to wagon, incl. royalty) on base price at INR 3,000/t. As per the sources, Odisha govt. may put 14 mineral blocks for auction soon.

  • SteelMint domestic pellet index "PELLEX" up by INR 100/t to INR 8,550/t DAP Raipur, amid hike in pellet offers during the week. Pellet prices in Bellary have increased by INR 300-400/t owing to tight supply as one of the pellet makers is undergoing maintenance shutdown. Also, a few market participants highlighted decent trades being concluded by Durgapur-based pellet makers in the last few days at around INR 7,500-7,600/t exw.

  • SteelMint's pellet export index (FoB east coast India) has increased by $2/t w-o-w to $124/t on 14th Oct'20. However, market participants highlighted there are few sellers and very limited offers are floating in the market. One pellet export deal was heard to have concluded from eastern India at around $137/t CFR, China (equivalent to $126/t FOB India) early this week.

Coal

Australian coking coal prices have fallen sharply over the week as demand sentiment weakened amid growing panic over the impact of probable coal import restrictions in China. There are reports of China-bound coal-laden vessels being diverted elsewhere and Chinese customers deferring and cancelling inbound shipments from Australia.

  • Indian market participants are treading carefully at this moment while awaiting clarification on the market uncertainties before taking new positions.

  • Latest offers for the Premium HCC grade are assessed at around $118.00/t FOB Australia, $129.00/t CNF China and $130.55/t CNF India.

Ferrous Scrap

Imported scrap offers to India have remained largely stable on a weekly basis, whereas trades have improved compared to the few weeks. Indian demand for scrap is likely to resume further considering restocking before winter holidays in US/UK. Scrap suppliers expect imported scrap offers may inch up in the coming week on improved inquiries, however, few deals have concluded throughout the week.

  • SteelMint's assessment for Shredded scrap in containers of UK origin stands at $310/t CFR Nhava Sheva, up by $1/t w-o-w.

Ferro Alloys

  • Indian silico manganese prices adjusted downward amidst dull demand and downstream steel prices. Current price is at around INR 59,000/t exw Raipur.

  • Prices of ferro manganese fell due to dull demand in Durgapur. Meanwhile, prices in Raipur remained stable w-o-w. Export demand remains low to moderate and the prices remain stable.

  • Indian ferro chrome prices came down by INR 2000/t amidst higher selling pressure on a major producer that had sell low due to a severe liquidity crisis.

  • Indian ferro silicon prices remained stable at INR 80,000/t despite the overall downtrend in the steel market. Few bulk deals were heard to be concluded at lower levels also.

Semi Finished

Indian semi finished steel prices remain supported this week, following subdued demand & sufficient order with producers. As per assessment, billet prices have increased by INR 200-1,000/t with a major hike of INR 500-1,000/t in west & southern regions.

Also, sponge prices rallied by INR 200-1,200/t, with a sharp surge in south India by INR 1,200/t, followed by INR 500/t in central region & INR 200-400/t in eastern India. Prices in the south region gain sharply due to shortage of pellets amid hike in price by INR 600/t, w-o-w.

  • Induction grade billet export offers slightly rise by $2/t w-o-w & deals reported at $400-405/t exw Durgapur, equivalent to $425-430/t CPT Nepal, via road delivery.

  • Indian sponge iron (80 FeM, 100% lumps) export offers up by $5/t, w-o-w, to $295-300/t CPT Benapole, equivalent to $315/t CFR Chittagong, Bangladesh.

  • Steel grade pig iron prices fluctuated by INR 100-300/t in central & eastern India, however there was a sharp surge in prices of foundry grade pig iron in the northern region by INR 1,500-1,800/t due to supply shortage.

  • SAIL is going to conduct basic grade pig iron auctions on 20th Oct from Bhilai Steel Plant (Qty 8,000 t) & from Indian Steel Plant, Burnpur (Qty 1,000 t). Another one is scheduled on 21 Oct from Bokaro Steel Plant, Jharkhand (Qty 5,700 t, equivalent to 2 rakes).

  • Vizag Steel, a state-owned steelmaker, has floated a 30,000 t (150*150 mm, 3SP/4SP grade) bloom export tender for spot sale. The shipment is likely to be scheduled by 30 Nov'20.

Finished Longs

India's secondary finish long steel market observed improved demand and better trade activity in this week, by which in most of the locations rebar prices have increased by INR 200-1,200/t w-o-w, except in few specified locations of the southern region where minor price corrections have also been noticed.

  • Mid scale mills wire rod export deals reported at $450-455/t exw Durgapur, equivalent to $475-480/t CPT Nepal.

  • Trade reference rebar prices (12-25 mm) through midsized mills assessed at INR 32,700-32,900/t exw Raipur, INR 34,300-34,600/t exw-Jalna.

  • Trade discounts in Raipur wire rod is currently at INR 1,000-1,200/t and trade reference prices stood at INR 33,000-33,500/t exw Raipur, INR 33,200-33,500/t exw Durgapur, size 5.5 mm.

  • Trade discount given by Raipur based heavy structure manufacturers is maintained at INR 900-1,200/t and the trade price of 200 Angle is at INR 37,000-37,400/t exw.

Finished Flats

This week domestic HRC and CRC trade prices remained largely stable. The major steel mills announced a price hike by INR 1,000-2,500/t last week for Oct deliveries. Traders and stockists of different regions shared that "momentum has slowed down a bit and buying interest at higher prices has slightly softened".

  • SteelMint's benchmark assessment for commercial-grade HRC stands at INR 42,000-43,500/t and CRC INR 53,000-53,500/t (exy Mumbai) stable against last week.

Participants shared with SteelMint that mills are currently not offering HRC for exports & focusing on domestic supply. The easing of supplies in the domestic market may result in a fall in domestic HRC prices. However, the absence of HRC import bookings may keep prices supported. On other other hand, CRC prices are expected to remain moderate amid strong demand from the auto and white goods sector.

Reference Prices as on 17th Oct'20 (Week 42)

Prices are exw & exclusive of GST

Indian export reference prices as on 17th Oct'20Prices in $/t
Source: SteelMint Research

 

17 Oct 2020, 16:40 IST

 

 

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