Category Archives: Bauxite

Indian mills offer over 140,000 t billets for export on active Chinese buying interest

On rising demand, the Indian mills are highly active in the export market these days, especially state-owned mills. Two of the Indian state-owned mills have floated export tenders for around 142,000 t billets/blooms.

The tenders are floated for multiple sizes- 65*65mm, 90*90mm, 125*125mm, 150*150mm, and 200*200mm, while the grades offered are 3SP/4SP/5SP. Of the total quantity floated, 90,000 t blooms/billets is under negotiation. While the due date for the remaining tender quantities is scheduled for 5-8 Mar ’21.

Tenders under process-

Rising Chinese domestic billet prices attracting Indian imports: The Chinese domestic billet prices are on a continuous rise post CNY holidays. For instance, billet prices yesterday in the Tangshan market (Northeast China) witnessed a significant rise of RMB 140 ($22).

The prices of commonly traded Q235 billet 150mm diameter were reported at RMB 4,410/t ($683/t) in Tangshan, inclusive of 13 % VAT. Today also the domestic prices are seen at similar levels.

As mills are making up the losses incurred during and pre holidays, the bids from China for Non-ASEAN billets have now increased to $590-595/t, CFR. This is likely to drive billet exports from India.

SteelMint’s bi-weekly assessment for Indian billets (150*150mm, BF route, FoB east coast) is currently at $540-545/t, up by $5-10 w-o-w.

On the other hand, the domestic billet prices posed an upward trend. For instance, SteelMint’s daily billet index saw a w-o-w rise of INR 750 ($10.3) and is currently at INR 38,100/t exw ($525/t).

The secondary mills were seen catering to the domestic market, while primary mills stayed focused on the export market amid better price realizations. However, we heard a few Western India-based secondary mills offering IF route billets for export at $570-580/t, FoB, but no deals were witnessed at this price level.

 

Iranian Mill Books 40,000 MT Billets for Export; Prices Remain Stable

This week, the Iranian billet export market was reported trade active as the country books couple of billet lots to some East Asian country and China.

– A deal for 10,000 MT billet export was concluded for Jun’20 shipment. The deal value was reported at USD 345/MT, FoB

– In another deal reported for 30,000 MT billet for Jul’20 shipment at around USD 345/MT, FoB.

With these deals, the SteelMint assessment for billet export offers from Iran is now standing at USD 345/MT, FoB Iran, majorly stable against last week.

Post these deals, the mills are now targeting the price levels close to USD 350/MT, FoB, for fresh deals, trade sources reported to SteelMint.

Meanwhile, the Iranian domestic market was noted to have a disappointing week as no billet trades were reported over the Iranian Mercantile Exchange (IME). According to trade sources reported to SteelMint, the government has canceled all the billet deals during the week because the mills sold the billets at higher price levels than government

 

Chinese Domestic Steel Market Update, 12 Jul’19

Billet: Yesterday the ex-factory price of general carbon billet in Tangshan, Changli and Qian’an areas was settled at RMB 3,640/MT, up RMB 10. In the early morning, the billet price in Changli area rose by RMB 10 to RMB 3,650/MT. After the uptick, the transactions on billet are still smooth, and the price of finished product goes strong tentatively. Mill direct sales are smooth. The ex-warehouse spot is offered at RMB 3,710-3,720/MT tax-inclusive with a few transactions. The billet inventory at warehouses of Xiangyu Zhengfeng and Haiyi Hongrun is 360,400 MT, down 15,200 MT. The overall trading on finished products is active, regardless of moderate transactions on certain variety. It is expected that the price of billets will increase in the afternoon.

HRC: Price of hot rolled flat sheet in Tangshan rose by RMB 10 and 1500mm wide flat sheet by first-tier steel mills is at RMB 3,860/MT, second-tier steel mills at RMB 3,850/MT, while Q 345 flat sheet at RMB 4,030/MT. Transactions are moderate.

 
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India: SAIL Invites Export Tender for Concast Blooms

Steel Authority of India – a government of India company has floated export tender  for prime mild steel non-alloy concast blooms . The tender quantity is reported to be 10,800-13,500 MT. The cargo will be shipped from Haldia port. The tender was put up for Prime Mild Steel Non-Alloy Concast bloom, size 160*210/230*8000/9000/10000/11000 mm offered from Durgapur Steel plant

The material has following specifications – C%: 0.09-0.15, Mn%: 0.25-0.60, S%: 0.05 Max, P%: 0.05 Max, Si%: 0.15-0.30

The said invitation bid service has been activated by SAIL for entry of data at 11:30:00HRS [IST] of 14 Jun’19.  The last date for bid submission is 19 Jun’19 by 16:00:00HRS [IST].

Last week was the consecutive week, in which Turkey’s scrap import prices fell down by USD 8-10/MT and global billet market witnessed yet another dull week. Although it was not surprising for the marketers, the market acted exactly in line with the expected resonance. Veritably, the dullness intensity of the global billet market escalated last week, even the Eid festivity could not brought boon to the market.

The billet export offers last week from CIS were reported at USD 425-430/MT, FoB Black Sea. The sentiments were reported stable in the region.

India’s Vizag Steel concluded 20,000 MT billet (150*150mm) export tender last week at around USD 435/MT, FoB India.

 

Alumina Row: Nalco Contests Against Vedanta in Supreme Court

The legal battle between the titans of Indian aluminium industry- National Aluminium Company (Nalco) and Vedanta Ltd has turned bitter with the central PSU knocking the doors of the Supreme Court, challenging the order pronounced by the Orissa High Court.

Public sector enterprise Nalco, in its special leave petition, said that as per the policy, the tender for export of alumina was issued only to overseas customers and, therefore, Vedanta could not be registered with Nalco.

It also told the court that in 2005 Nalco, after considering various circumstance, decided to sell alumina overseas.

Nalco is a leading producer of low-cost metallurgical grade alumina in the world and the commodity produced is used to meet its requirements to produce primary aluminium at smelter. The surplus alumina is sold to third parties in the export market.

But Nalco has rejected Vedanta’s plea for participating in tender for the sale of alumina, observing that Vedanta Ltd was established under the Special Economic Zone (SEZ) statute.

However, Nalco said that Vedanta could participate in the tender, if interested, through its sister concern company based in London.

Aggrieved by the decision, Vedanta moved to the Odisha High Court which allowed the company’s Jharsuguda unit to participate in the tender.

The Odisha High Court in its order delivered on March 26 said: “… Because on one hand, it refuses the petitioner (Vedanta) to participate in the tender, on the other hand, the opposite party has allowed the petitioner to apply through its sister concern based in London and spend huge Forex to transport to London and call it back for its use at SEZ, does not find favour with the commercial sense.”

Vedanta has challenged the corporate conditions contained in the tender of spot sale of 30,000 mt of Metallurgical Grade Calcined Alumina floated by Nalco.

Vedanta said that the decision of Nalco has adversely affected the public interest of fetching maximum revenue by sale of  alumina produced from bauxite (which is readily available to the opposite party through mining on account of it being a public sector undertaking).

Vedanta claimed it was the largest manufacturer of aluminium and was engaged in manufacturing and selling aluminium products.

The company is having 1.6 million tonnes per annum (MTPA) aluminium smelter plant which includes a SEZ unit having an Aluminum Smelter Plant with a capacity of 1.25 MTPA at Bhurkamunda in Jharsuguda district in Odisha.

 

Daily Update: Indian Semis Trade Improves

Indian Steel prices further surge through the mid sized mills on active demand and the price rise noticed by INR 100-700/MT (upto USD 10) in across major markets.

The Sponge iron prices rise by INR 100-400/MT & Billet at close to INR 100-500/MT. Meanwhile Rebar increases in the range of INR 100-700/MT and majorly in North & Western regions.

As per producers, presently their is no selling pressure with them and are hopeful for further surge in prices as demand is good amid strengthening raw materials.

SteelMint’s latest price assessment for induction furnaces billet in Indian market stood at INR 34,000-36,700/MT (USD 481-520) ex-plant.

Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 21,500-22,700/MT (USD 304-322); prices are ex-plant & excluding GST.

Rupee & BSE Sensex

On 12th February 2019 (Tuesday) INR to USD exchange rate stood at INR 70.62.

ICEX (Indian Commodity Exchange Ltd) Mar’19 contract for STEELLONG today open at INR 35,780/MT & last traded (IST 18:33) at INR 35,840/MT.

BSE Sensex closed at 36,153(-241) on Tuesday, as against last day (Monday) at 36,395(-151).

NSE Nifty50 index was closed today at 10,831(-57).

Raw Materials

The major merchant miners in Odisha has further increased Iron ore prices today by INR 400-600/MT.

Raipur (Central India) based pellet makers have increased offers almost three month high to INR 8,000/MT (Ex-Raipur) against the last week’s assessment at INR 6,800/MT.

According to the sources report to SteelMint, Karnataka High Court has postponed hearing further on NMDC Donimalai lease renewal issue to 14th Feb.

Imported scrap offers to India for HMS (80:20) Europe origin containers stood at around USD 320/MT, CFR Nhava Sheva.

Semi Finished

Jindal Steel has raised offers and reported granulated pig iron (panther shots) at INR 27,000/MT & pooled iron at INR 26,000/MT ex-plant, Angul, Odisha. Also the company is offering bulk purchase discount of INR 500/MT.

India’s Vizag Steel concluded 15,000 MT ocean Billet (90*90 mm) export tender at around USD 440/MT, FoB. Company also concluded Billet export tender to Nepal at around USD 435-440/MT ex-mill

Indian sponge iron export offers to Bangladesh increased by USD 15/MT W-o-W for lumps of grade FeM 78-80 & recorded at USD 335/MT CPT Benapole (dry land port of Bangladesh & India) and USD 355/MT CFR Chittagong, Bangladesh

— East India, Odisha based manufacturers Mahavir Ferro Alloys & Ganesh Metaliks offered Billet at INR 34,500/MT ex-plant, as per officials.

— Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 21,500/MT & Billet at INR 34,000/MT ex-plant.

BIOP Steels in South India has increased sponge prices by INR 400/MT, offering FeM 80 & 82 C-DRI lumps at INR 21,500/MT & INR 22,000/MT ex-plant, Karnataka; an official reported.

BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 21,000/MT ex-Bellary, offers incline by INR 200/MT from the last trade; an official reported.

South India (Telangana) based Cauvery Iron & Steel offers FeM 80 P-DRI & Billet at INR 21,500/MT & INR 35,000/MT. Also offering 12 mm Rebar at INR 38,500/MT. All prices are ex-plant & excluding GST

Wire Rod & Pipe

Raipur based wire rod manufacturers increased offers by INR 300/MT and trade discount through manufacturers/suppliers is around INR 500-800/MT. The offers for 5.5 mm wire rod is hovering around INR 41,200/MT ex-Raipur & INR 39,000-39,500/MT ex-Durgapur.

Rashmi Metaliks kept wire rod offers unchanged & reported at INR 39,000/MT (5.5 mm) ex-Kharagpur, East India.

Mandi Gobindgarh, North India based ERW pipe manufacturers increased prices by INR 700/MT & offers reported at around INR 42,700/MT ex-plant & excluding GST.

— Hyderabad (South India) based manufacturer Mahalakshmi Profiles Pvt. Ltd (MPL) has offered ERW Pipe at INR 42,000/MT ex-plant. (basic & excluding GST).

Rebar (12 mm)

Raipur based – SPEED TMT offering at INR 38,000/MT (up by INR 100/MT).

Raipur based GK TMT offering at INR 40,200/MT (up by INR 500/MT).

Gujarat based Shreeyam Power & Steel Industries Ltd. (National TMT) offering at INR 40,200/MT FoR (up by INR 400/MT).

Jalna based Kalika TMT offering at INR 39,300/MT (up by INR 200/MT).

Mumbai based Guardian TMT offering at INR 39,700/MT (up by INR 500/MT).

Note – Prices mentioned above are ex-work, excluding GST & changes are placed on day basis.

Reference prices as on 12th February 2019

Particular/Delivery Size, Grade, Origin Prices Min Max Change 1W 1M
Scrap Ex-Alang HMS(80:20) 27,000 26,900 27,100 + 200 26,500 25,900
Ex-Mumbai HMS(80:20) 25,800 25,700 25,900   0 25,300 25,000
Ex-Chennai HMS(80:20) 25,400 25,200 25,600   0 24,500 NA
C-DRI Ex-Durgapur Mix, FeM 78%, +/-1 22,000 21,900 22,100 – 100 21,100 20,200
Ex-Rourkela Mix, FeM 80%, +/-1 21,400 21,300 21,500 + 400 19,800 19,400
Ex-Raipur Mix, FeM 80%, +/-1 22,700 22,600 22,800 + 200 20,900 20,150
Ex-Bellary Lumps, FeM 80%, +/-1 21,500 21,400 21,600 + 200 19,700 19,100
P-DRI Ex-Durgapur Lumps, FeM 78%, +/-1 20,900 20,800 21,000 + 100 19,800 19,100
Ex-Raipur Lumps, FeM 80%, +/-1 21,800 21,700 21,900 + 100 19,900 18,650
Ex-Bellary Lumps, FeM 80%, +/-1 20,900 20,800 21,000 + 100 19,300 18,700
Ex-Hyderabad Lumps, FeM 80%, +/-1 21,500 21,400 21,600 + 200 19,600 NA
Ingot Ex-Mandi Gobindgarh 3.5 x 4.5 Inch, IS 2830 36,250 36,200 36,300 + 50 34,500 33,600
Ex-Durgapur 3.5 x 4.5 Inch, IS 2830 33,500 33,400 33,600   0 32,000 30,700
Ex-Rourkela 3.5 x 4.5 Inch, IS 2830 33,400 33,300 33,500 + 100 31,100 30,000
Ex-Raipur 3.5 x 4.5 Inch, IS 2830 34,150 34,100 34,200   0 31,800 30,700
Ex-Mumbai 3.5 x 4.5 Inch, IS 2830 36,300 36,200 36,400 + 300 34,300 32,900
Billet Ex-Mandi Gobindgarh 100×100 mm, IS 2831 36,700 36,600 36,800   0 34,900 33,800
Ex-Durgapur 100×100 mm, IS 2831 34,000 33,900 34,100   0 32,500 31,200
Ex-Rourkela 100×100 mm, IS 2831 34,300 34,200 34,400 + 300 31,700 30,500
Ex-Raipur 100×100 mm, IS 2831 35,150 35,100 35,200 + 50 32,900 31,400
Ex-Ahmedabad 100×100 mm, IS 2831 36,300 36,200 36,400 + 500 34,400 33,500
Ex-Mumbai 100×100 mm, IS 2831 36,600 36,500 36,700 + 400 34,500 33,100
Ex-Chennai 100×100 mm, IS 2831 35,200 35,200 35,500   0 33,000 32,600
Ex-Hyderabad 100×100 mm, IS 2831 35,200 35,000 35,500 – 300 33,000 32,500
TMT Ex-Delhi/NCR 12-25 MM, IS 1786- 500 Fe 39,500 39,300 39,700 + 400 37,500 37,200
Ex-Durgapur 12-25 MM, IS 1786- 500 Fe 38,800 38,600 39,000 + 300 37,000 35,800
Ex-Raipur 12-25 MM, IS 1786- 500 Fe 37,800 37,700 38,000 + 100 35,400 35,000
Ex-Mumbai 12-25 MM, IS 1786- 500 Fe 39,300 39,100 39,600 + 600 37,600 36,400
Ex-Chennai 12-25 MM, IS 1786- 500 Fe 39,000 38,800 39,300   0 37,100 NA
Ex-Hyderabad 12-25 MM, IS 1786- 500 Fe 39,000 38,800 39,200   0 37,000 37,000
Wire Rod Ex-Durgapur Wire Rod(5.5 MM) 39,400 39,200 39,600   0 37,400 36,800
Ex-Raipur Wire Rod(5.5 MM) 41,200 40,700 41,200 + 300 38,400 38,100

Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research

 

India: NALCO’s Operating Profit Increases 80% in Q3 FY19

National Aluminium Company (Nalco), a leading producer cum exporter of alumina and aluminium, has reported 80 per cent surge in its operating profit during the December quarter of this fiscal.

NALCO said, the jump in operating profit to INR 589 crore beat its own expectations. Net profit of the company for the third quarter is INR 302 crore and the net profit for the period from April 2018 to December 2018 has grown to INR 1499 crore as against INR 1085 crore of last year same period i.e. 38 per cent growth.

The net sales for the first nine months of the fiscal are INR 8,644 crore i.e. 32 per cent growth over the same period of last year. NALCO has also achieved record growth in production in all fronts. During the first nine months of the current fiscal, Nalco achieved production of 55.39 lakh tonnes of bauxite, as compared to 54.40 lakh tonnes achieved during the comparable period of the previous fiscal. The company produced 15.92 lakh tonnes of alumina hydrate, against 15.51 lakh tonnes achieved in the corresponding period of the previous financial year.

Metal production was 3.29 lakh tonnes, against 3.17 lakh tonnes during the comparable nine months of the previous fiscal. The net power generated during the period was 4,580 million units. As a committed and responsible green power producer the company has generated 310 million units of wind power during the first 9 months of this fiscal.

 

Vedanta Aims to Get Bauxite from EGA in July 2019

Metals and mining conglomerate Vedanta Ltd hopes to get its first consignment of bauxite from Emirates Global Aluminium (EGA) by July 2019.

The Anil Agarwal controlled Group had inked an agreement with EGA for importing 4 million of the raw material each year. The bauxite will be sourced from mines in Guinea where EGA has stakes.

EGA’s wholly-owned subsidiary Guinea Alumina Corporation (GAC) is building a bauxite mine and associated export facilities in Guinea, in one of the largest greenfield investments in the country in the past 40 years.

First bauxite exports from the GAC project are expected during the second half of 2019. Once full-ramp up is achieved, GAC is expected to produce some 12 million tonnes of bauxite per year.

Much of Guinea’s bauxite is amongst the highest quality worldwide.

“The supplies of bauxite from EGA will begin from July 2019 onward. The supply will be ramped up in tune with our increasing requirement”, said a Vedanta executive.

Vedanta has pledged Rs 6400 crore investment on its Lanjigarh refinery in Odisha to scale up capacity to 6 MTPA. The refinery’s current de-bottle necked capacity is 2 MTPA.

Initially, the refinery will be upgraded to a capacity of 4 MTPA. This milestone is expected to be achieved by the middle of calendar 2020. The refinery ramp up will also help Vedanta to cut it’s over dependence on imported alumina. Each year, Vedanta imports close to 2 MnT  of the intermediate product to feed its smelters at Jharsuguda (Odisha) and the BALCO unit located at Korba (Chhattisgarh).

Vedanta has firmed up bauxite sourcing arrangements with state controlled Odisha Mining Corporation (OMC). As per this agreement, 70% of the bauxite mine by the PSU at its captive Kodingamali mine will be lifted by Vedanta for its Lanjigarh facility.

From next quarter onwards, Vedanta expects to draw 250,000 tonnes of bauxite per month from the OMC mine which is being ramped up. That apart, Vedanta is also  taking part in bauxite auctions conducted by OMC on MSTC platform twice a year. Vedanta, as a measure in long-term bauxite security, aims to bid for the ensuing bauxite blocks on offer at auctions, especially in the states of Chhattisgarh, Jharkhand and Odisha.

 

MMTC Floats Global Tenders for Bauxite Exports

State controlled trading company MMTC has invited tenders from overseas buyers to export 100,000 tonnes of metallurgical grade bauxite. The bauxite of Indian origin, is meant to be dispatched through Okha port in Gujarat.

The shipment period of the consignment is scheduled in January/February 2019. A bidder to be eligible for the tenders, needs to have a minimum turnover of $3 million in the last financial year and a net worth of at least $1 million on the last balance sheet.

India’s bauxite exports in calendar 2018 are projected to drop by around 53% year-on-year to 1.2 MnT from the level of 2.6 MnT in 2017. The estimates of the Ministry of Commerce are as per the export data averaging over the last five years.

However, Aluminium Association of India thinks this quantity should further shrink in order to support more value-addition of the aluminium ore within the country.

The industry body recently approached the Centre urging an import duty hike on aluminium scrap and primary aluminium to 10% from 2.5% and 7.5% respectively. The association also sought an increase in export duty on bauxite from 15% to 20 %. According to them, government should encourage more domestic value addition of the ore, and for that it should trim further exports.

Custom duty on bauxite export was marginally reduced from 20% to 15% in Budget 2016 after All India Association of Industries (AIAI) claimed that heavy custom duty was turning Indian bauxite non-competitive in the global market.

On the contrary Indian aluminium majors including National Aluminium Company (Nalco) and Hindalco Industries have been lobbying the government for complete ban of bauxite exports. They are of the view that retaining more of the ore in the country would help keep aluminium cost of production under control and facilitate further value addition.

India exports bauxite to China, Saudi Arabia, France, Japan, Slovenia, USA, UK, Oman, Italy and Kuwait. China is the main importer of bauxite’s from India. Imports are quiet negligible in comparison to the exports; the ore is procured in lesser quantities from Guinea and Brazil, the two major suppliers of global bauxite.

 

Iran and Turkey Trade Ties Growing Despite US Sanctions

Iran one of the largest billet exporter in the world is currently facing sanctions from US, owing to which many country has suspended their business with Iran. On other hand, few countries are trying to get exempted from US to do business with Iran.

Recently during the 95th anniversary of the establishment of the Republic of Turkey, Mr. Reza Rahmani Iran’s minister of industry, mine and trade in a meeting with Turkey’s Ambassador to Iran Hakan Tekin said that “Islamic Republic of Iran considers comprehensive relations and cooperation with neighboring countries, Islamic countries, mainly Turkey, as one of the main foreign policy strategies.

Rahmani added that the Iran’s Ministry of Industry, Mine and Trade seeks to create favorable conditions within a win-win strategy for developing cooperation and relations between Iranian and Turkish businessmen as part of a joint Iran-Turkey commission. The minister underlined that Iran does not place any restriction on development of relations with Turkey.

It is to be noted that, Iran is one of the largest exporter of billet to Turkey. The nation has exported around 0.12 MnT in last Persian year (21 Mar’17-20 Apr’18). During the first 6 months of current Persian year (21 Mar-22 Sep’18), Iran has already exported 0.11 MnT billet to Turkey.

Iranian Billet Export Remains Stable in Current Persian Year

Iran, one of the largest billet exporter in MENA region has exported 1,580,000 MT billet and bloom during the first six months of current Persian year (21-Mar till 22-Sep’18). As per the data released by ISPA, export of billet during the period remained stable against 1,581,000 MT exported during the same period of last Persian year.

Khouzastan Steel Company (KSC) was the largest exporter of billet and bloom during the period, the company exported 637,807 MT in current year, registered a downfall of 40% Y-o-Y against 1,062,625 MT exported in last Persian year.

South Kaveh Steel Company (SKSCO) was the second largest exporter of billet, the company exported 419,000 MT billet during the period, registered a growth of 14% Y-o-Y against 367,544 MT exported in last Persian year.

Khorasan Steel was the third largest exporter of bloom, the company exported 90,330 MT during the period.

Inputs from Iran Daily