India’s largest government-owned merchant iron ore miner, NMDC, has cut iron ore prices for Jul’21 deliveries by INR 200-230/t ($3), SteelMint learnt from credible sources. Drop in pellet and sponge iron prices along with a sharp decline in bids at OMC’s recent auction have resulted in the price correction. Bids at OMC’s auction dropped by INR 1,100-1,950/t compared to bids received in the company’s May auction. The revised offers by NMDC are as follows:
- Baila lump (6-40mm, Fe 65.5%) – INR 7,450/t (down by INR 200/t m-o-m)
- Baila fines (Fe 64%) – INR 6,360/t (down by INR 200/t m-o-m)
- DR CLO (10-40mm, Fe 67%) – INR 8,650/t (down by INR 230/t m-o-m)
The above FoR prices are on per tonne basis, excluding royalty and other statutory taxes.
Japan’s monthly Kanto Tetsugen ferrous scrap export tender for Jul’21 was concluded today. A total of around 14,000 t of Japanese H2 scrap was awarded at an average price of JPY 47,888/t ($436), FAS, SteelMint learnt from its trade sources. The highest bid is lower by JPY 1,307 ($12) against the June tender. After today’s tender result, Japanese H2 scrap export prices may see some adjustments from the prevailing price levels, however, high-grade prices are less likely to fall on demand-supply mismatch.
Iran’s leading steel mill – KSC has floated an export tender for 30,000 t billets (130mm) for end-Jul’21 shipment. The company exported 340,000t semi-finished steel in first two months of the current Iranian year, up by 136% y-o-y. SteelMint’s bi-weekly assessment for Iranian billets (150*150mm, BF route, FoB east coast) was recorded at $610/t, FoB on 6 July.
An Indian state-owned mill had floated a tender for 18,900 t of billets (125mm, 4SP/5SP) for end-Aug shipment. According to market sources, the tender received bids at around $585-590/t FoB. However, mills are expecting a price level of around $600/t FoB. Owing to disparity in bids and offers, the tender has been cancelled, as per reports.
A leading Iranian steel exporter has reportedly sold 40,000 t of slabs through an export tender, as per SteelMint reports. According to sources, the company concluded the tender at $740/t, FoB Iran. The shipment is likely to be scheduled for mid-Jul’21 and the destination is the Far East. Prices have moved down by around $5-10/t against the company’s last tender concluded in mid-Jun. Softening global HRC prices have resulted in bearish market sentiments.
An Indian mill had floated an ocean export tender for the sale of 25,000 t of steel grade pig iron. The due date was 24 Jun’21 and the shipment was scheduled for end-Aug. According to market sources, the tender has been cancelled on bid-offer disparities. The bids were heard at around $540-545/t, FoB levels. The company has issued a new tender for a similar quantity for end-Aug delivery, which is due on 6 Jul.
An Indian steel mill has recently concluded an export tender for 40,000 t of basic grade pig iron for Jul’21 shipment. The deal was heard concluded at around $560/t, FoB, for a non-Chinese destination, according to market sources. Domestic pig iron prices in India have moved down amid declining billet offers. SteelMint’ assessment for steel grade pig iron has fallen by INR 500/t w-o-w to INR 39,500/t, exw Durgapur. Indian pig iron exports rose sharply by 169% in FY’21 to 1.03 mn t, with JSPL, JSW Steel, Vedanta and RINL being the key exporters.
Japan’s monthly Kanto Tetsugen ferrous scrap export tender for Jun’21 concluded today. A total of around 7,500 t of Japanese H2 scrap was awarded at an average price of JPY 49,195/t ($450), FAS, SteelMint learnt from its trade sources. The highest bid is marginally lower by JPY 84 ($1) against May tender. After today’s tender result, Japanese scrap export offers may rise, as bids put up by Hyundai Steel and other mills last week were comparatively on the lower side.
The Joint Directorate of Mines, Keonjhar, Odisha has stopped iron ore dispatches from Thakurani B block of Sarda Mines from 28 May’21, according to copy of the order accessed by SteelMint. Notably, the miner’s lease is due to expire on 13 Aug’21. Sarda Mines recorded iron ore production of 6.15 mn t in FY’21.
Saudi Arabia’s leading steel mill, Hadeed Sabic has announced a sharp hike of SAR 350/t ($93) in rebar prices for June’21 sales, SteelMint learnt from market sources. The revised price for rebar (12-32mm) for June’21 stands at SAR 3,000/t, delivered within the country. In 2020, SABIC posted overall steel production at 60.7 mn t.