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Weekly round-up: IF-route rebar offers drop, flats await further price hike

The domestic steel market remained volatile during week 7 (7 Feb’22 – 12 Feb’22). Semi finished prices fell sharply by INR 200-2,000/t. Rebar...

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12 Feb 2022, 16:56 IST
Weekly round-up: IF-route rebar offers drop, flats await further price hike

The domestic steel market remained volatile during week 7 (7 Feb'22 - 12 Feb'22). Semi finished prices fell sharply by INR 200-2,000/t.

Rebar offers also declined due to weak buying enquiries and trading activities. Secondary rolling mills' rebar prices dropped by up to INR 1,700/t w-o-w.

On the other hand, finished flats manufacturers eyed a second round of price hikes for Feb'22 sales in the coming days after integrated steel major AM/NS India anounnced another hike of INR 500/t in HRCs and INR 1,000/t in thge PM plate category.

Iron ore and pellet

SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stands at INR 12,250/tonne (t) DAP Raipur on 11 Feb'22, down by INR 400/t against the last assessment on 8 Feb. No confirmed trade was heard in this publishing window.

Indian pellet export prices rise in recent deals.

  • The Indian pellet export market has gained momentum following the hike in global iron ore prices & prices have risen by $3-5 against the mid of this week.A leading eastern-India based pellet producer has concluded an export deal for 55,000 t of pellets (Fe 63%, 3.5% Al) at $189/t CFR China for March Shipment.

  • Steel Authority of India Ltd (SAIL) conducted an auction for 12,000 t iron ore concentrate (Fe 64.53%- indicative) from its Dalli/ Rajhara mines in Chhattisgarh. They have received bids for entire quantity offered at around INR 5,020/t (Loaded, including Royalty, DMF and NMET), according to market sources report to SteelMint.

Coal

  • Australian coking coal prices fell by $6/t w-o-w basis in tandem with the drop in demand especially from India. The latest price for premium HCC grade are assessed at around $439/t FOB basis and $460/t CFR basis.

  • S. African RB2 (5500NAR) portside prices remained range-bound this week as sponge iron manufacturers adopted a wait-and-watch mode.

  • South African RB1 prices for Feb'22 rose by 19/t w-o-w to $195/t, FOB basis. RB2 is being sold at a premium of $5/t over the index while RB3 discount is assessed at $5/t.

Ferrous scrap

The imported scrap market in India witnessed a slowdown later this week, owing to a drop in the prices of semi-finished and finished steel items. Further, sponge iron and domestic scrap prices also moved down, considering the negative sentiments in the domestic market. Bids for imported scrap have come down considerably.

Recent deals and offers

  • Shredded offers were heard at around $550-555/t, CFR Nhava Sheva, but no confirmed deal was heard as Pakistan-based mills actively booked the material at $552-555/t, CFR PQ. However, some offers were heard on the higher side of $560/t.

  • Offers for Dubai-origin HMS 1 and HMS 1&2 (80:20) are being quoted at $500/t and $495-500/t CFR levels respectively, up by $5-10/t w-o-w. Buyers were not willing to pay these high price levels.

  • Earlier in the week, deals of South African HMS were heard at $500-505/t, CFR Chennai.

  • West Africa-origin HMS offers were heard at $480-490/t CFR India levels, after deals seen early this week at $505/t CFR Chennai.

Ferro alloys

Indian bulk ferro alloys prices remained largely stable w-o-w with ferro silicon and ferro chrome prices unchanged while manganese alloys prices fell marginally this week.

  • Indian silico manganese prices (60-14) dipped by 1% w-o-w as the selling pressure was high on producers owing to lack of buying interest. According to the assessment on 11 Feb'22, Durgapur producers offered at INR 97,600/t exw for 60-14 grades, while Raipur's prices were at INR 99,250/t exw.

  • Indian ferro manganese (HC70%) prices dropped marginally by 1% w-o-w on low demands from steel mills at higher price levels. According to the assessment on 11 Feb'22, producers offered at around INR 98,000/t exw- from both Durgapur and Raipur.

  • Indian ferro chrome (HC60%) prices remained range-bound at INR 104,000/t exw-Jajpur owing to muted demand from domestic as well as Chinese buyers, assessed on 10 Feb'22. Meanwhile, Vedanta's ferro chrome auction concluded at close to the market price this week.

  • Indian ferro silicon (70%) remained stable this week with the price parity maintained between import-export offers. According to an assessment on 11 Feb'22, the current market prices are hovering at INR 145,000/t exw- from both Guwahati and Bhutan.

Semi finished

Indian Semi finished steel prices decrease sharply as per SteelMint assessment, the domestic billet prices fell by INR 500-1,800/t across region with a major fall seen in Raipur & Mumbai. Similarly, low demand and falling billet prices weighed on sponge iron offers, as prices declined by INR 200-2,000/t.

  • SAIL held an auction for 9,000 t of basic grade pig iron on 9 Feb'22 from the Rourkela Steel Plant (RSP) & the entire quantity booked at a weighted average price of INR 47,100/t exw.

  • Vizag Steel has floated two ocean sale export tenders for 20,000 t each of billets (90x90mm, C20MMn Gr. A) and wire rods (5.5-16 mm, SAE-1008/ 1010/1012/1012S /1018). The due date for both the tenders was 11 Feb'22.

  • SteelMint's sponge iron (FeM 80%, lumps 100%) export price assessment to Bangladesh declined by $10/t, w-o-w, to $500/t CPT Benapole, equivalent to $530/t CFR Chittagong.

  • IF-route billets offers fall slightly by upto by $5/t, w-o-w, to $635/t exw-Durgapur, equivalent to $660/t CPT Nepal.

Finished longs

India's induction route finished long steel manufacturers observed weak buying enquiries and trade in the spot market this week. Traders were not willing to procure material at higher prices. Corrections in raw material prices were also noticed. Thus, all such factors created a pressure and manufacturers either declined their offers or adjusted trade prices as per previous booking orders and availability of material. On a weekly basis, prices in rebar steel declined by up to INR 1,700/t w-o-w across regions, SteelMint's assessment shows.

  • The trade reference price of the Fe 500 grade rebar of 10-25 mm, manufactured via the IF route, was assessed at INR 53,600-54,000/t exw-Raipur, and at INR 54,900-55,300/t exw-Jalna.

  • Trade discounts given by Raipur-based heavy structural steel manufacturers was around INR 1,000/t and trade reference prices for the 200 mm angles stood at INR 55,100-55,400/t exw-Raipur.

  • Trade discounts given by Raipur- based wire rod suppliers are hovering at INR 700-1,000/t and trade reference prices stood at INR 49,000-49,300/t exw Raipur, INR 50,400-50,600/t exw Durgapur, size 5.5 mm.

Finished flats

  • Steel majors are eyeing a second round of price hikes for Feb'22 sales in the coming days after integrated steel major AM/NS India anounnced another hike of INR 500/t in HRCs and INR 1,000/t in the PM plate category.

  • Moreover, India's HRC exports stood at around 462,336 t in Jan'22 as per the bulk HRC shipment data maintained with SteelMint. Major tonnages shipped of around 232,014 t were shipped to Gulf countries followed by EU at 82,450 t and Southeast Asia at 82,203 t in Jan'22. Also, HRC export bookings made for Feb-Mar'22 shipments were estimated at around 1.14 mnt on the back of higher price realizations in overseas markets.

  • Market prices had been moving up since the end-week of Jan'21 but remained range-bound this week in most markets, excluding Faridabad and Ahmedabad where prices have increased a bit.

  • Steel mills increased prices, citing higher input costs and rising flat steel prices in the global markets. Domestic end-users stuck to need-based procurements. This kept the pace of price increase at the trade level slower.

 

12 Feb 2022, 16:56 IST

 

 

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