Category Archives: HR Plate

India: SAIL BSP’s defective auction sees rise in bid prices by INR 750/t ($10)

Steel Authority of India Limited (SAIL) conducted an auction from its Chhattisgarh-based Bhilai Steel Plant (BSP) for defective steel products on 20 Jul’21. The auction fetched a better response on improved buying interest, sources said.

Around 14,237 tonnes (t) of defective steel was put up for auction, of which 88.36% of the material, equivalent to 12,581 t got sold.

Bid prices for blooms moved up by INR 750 /t and those for billets rose by INR 1,000/t against the previous auction conducted on 10 Jul’21.

SteelMint’s daily billet index was assessed at INR 42,200/t exw-Raipur, on 20 Jul’21, up by INR 1,200/t w-o-w. The index increased following active demand on prevailing optimistic sentiments globally along with slight supply shortage of ready for delivery material in the spot market.

Highlights of the auction:

Quantity in t
Price in INR/t on exw-Bhilai basis

For complete details of all other products, please click here =>BSP Auction Summary Auction Dated 20-July

 
Indian mills keep HR plate prices stable amid weak demand

Indian mills keep HR plate prices stable amid weak demand

Domestic manufacturers of hot-rolled (HR) plates have kept their list prices stable this week, in view of the bearish domestic market sentiments and low demand.

  • JSPL’s list price stands firm at 66,000/tonne (t) ($885/t) ex-works Angul, for Jul-Aug ’21 shipments.
  • JSW’s list price is flat at INR 68,000/t ($912/t) ex-works Anjar.
  • SAIL’s list price is stable at INR 67,200/t ($902/t), ex-Mumbai.

Domestic demand continues to remain sluggish.

“Demand is moving into a slowdown phase. With the arrival of the monsoon, offtakes are low owing to low buying intent from sectors like auto and ancillaries, construction, drums and barrels, pre-engineered buildings (PEB), and heavy engineering (HE),” informed a major western India-based market source.

Trade market prices

For week 29, SteelMint’s benchmark assessment for HR plates (IS-2062/E250) of 5-10 mm thickness remains flat at INR 64,000-65,000/t ($859-872), exy-Mumbai. Prices are exclusive of GST @18%.

Domestic market sentiments are also hit by other factors:

1.High inventories in trade segment: A few sources are concerned that the trade segment players are sitting on good volumes of inventory who are waiting for prices to further correct before opting for more procurements.

2.Low buying interest among plate consumers: Unlike the plate-consuming industries, the end-users are also showing limited interest in procuring due to liquidity concerns and detection of a new Covid-19 variant or third wave in many provinces.

“Sporadic lockdowns across the country has severely impacted the consumption and sales of HR plates. While the detection of a new covid-19 variant has led to increased concerns and precautionary measures in some regions, labour have not returned in full numbers to plants. This has led to the low production. There is muted demand from projects as there are not enough funds,” a trader told SteelMint.

China’s steel plate export prices surge

The Chinese heavy plates export prices are up by $10-20/t from a week earlier. However, major mills have suspended their offers to overseas buyers in order to prioritise the domestic market in view of production cuts in H2CY ’21 for keeping levels in line with that of CY ’20.

The current week’s export offers hover at around $890-910/t FoB China.

Outlook

Domestic traders are awaiting lower price levels from mills before making further procurements of HR plates. But mills are likely to keep prices stable for a few weeks on the back of the current market scenario.

 
India: HR-plate trade prices reel under slow demand

India: HR-plate trade prices reel under slow demand

The persistent low buying interest and bearish sentiments in the domestic market weighed on the trade segment prices of HR plates this week, leading to a correction of around INR 1,300/tonne (t).

For week 28, SteelMint’s benchmark assessment for HR plates (IS-2062/E250) of 5-10 mm thickness declined by INR 1,300/t to INR 64,000-65,000/t ($859-872), exy-Mumbai, compared to last week’s prices of INR 65,800/t. Prices are exclusive of GST @18%.

“Demand is moving into a slowdown phase. With the arrival of monsoon, sectors like construction, pre-engineered buildings (PEB), and heavy engineering (HE), aggregating 16-20% of plates consumption, are witnessing a gradual halt in activities. This has led to the recent dip in trades which have been persistently low since the beginning of CY ’21,”said major Mumbai-based trader.

There are other factors impacting market sentiments too.

  • Automobile sector starts at a slow pace: Recovery from the auto-segment has remained slow post the easing of lockdowns across the country. Demand from auto giants had dropped owing to the closure of dealerships and showrooms since the outbreak of the second wave of Covid-19 in mid-March. On a positive note, the farm equipment segment has done fairly well but demand for plates during the month has remained very low.
  • Disparity between mill and trade prices: Trade prices are currently standing at around INR 64,000-65,000/t ($859-872) exy-Mumbai, but list prices of major plate mills are slightly higher at INR 66,000-69,000/t ($886-926) ex-works. “Sellers and traders, having drained out low-priced inventories, are not that eager to trade at low prices. But the buyers are on the lookout for further cheap offers in the market,” informed a Delhi-based trader.

Mills continue to stand firm on their price policy

Major Indian manufacturers of hot-rolled (HR) plates have kept their list prices stable although demand continues to remain sluggish, SteelMint learned from several credible sources.

  • JSPL’s offers are hovering at INR 66,000/tonne (t) ($886), ex-works Angul, unchanged for Jul-Aug ’21 shipments.
  • JSW’s list price stands at INR 69,000/t ($926) ex-works Anjar.
  • SAIL has also rolled over HR plate prices for this week with offers pegged at INR 67,000/t ($899), ex-Mumbai.

China steel plate export prices remain flat

The Chinese heavy plate export offers continue to hover at around $880-890/t FoB China after having gained some support from the current week’s futures market and improved inquiries from a few importing countries.

However, in the previous week, China’s export offers had edged down by $10/t FoB as the wait-and-watch approach of the importers had impacted demand.

Outlook

“The complexity of the current market does not offer room for a clear forecast. In the current situation, one can only observe market sentiments,”said a major plates trader from northern India.

However, a few trade segment participants are expecting a further correction of INR 1,000/t in the coming weeks amid subdued demand and liquidity crisis in the domestic market.

Thus, where the buyers are observing and restricting their procurement to need basis and mill looking out for more export opportunities, it would be interesting to see how the market moves in the upcoming weeks.

 

India: Bids at SAIL’s secondary steel auction drop by INR 500/t

Steel Authority of India Limited (SAIL) conducted an auction from Bhilai Steel Plant in Chhattisgarh for defective steel products on 2 Jul ’21. The bid prices for steel bloom dropped by INR 500/t ($6/t) against the previous auction conducted on 16 Jun.

A total of 12,800 t of defective steel was put up for auction out of which 77.28%, i.e. 9,893 t of material got sold, while 2,907 t remained unsold. In the previous auction held on 16 Jun, the share of the quantity sold out of total material on offer was 95%. SteelMint’s daily billet index was assessed at INR 40,600/t exw-Raipur on 2 Jul.

Domestic billet prices in India continue to remain under pressure on falling steel margins and limited inquiries due to subdued domestic finished steel sales. SteelMint’s daily billet index was assessed at INR 40,450/t exw-Raipur on 7 Jul, down by INR 300/t w-o-w.

Highlights of the auction:

Quantity in t
Price in INR/t on exw-Bhilai basis

 

For complete details of all the other products auctioned by SAIL-BSP, please click here =>SAIL BSP Auction Summary 2nd July

 
India: Domestic HR plate prices slide on tepid demand

India: Domestic HR plate prices slide on tepid demand

Indian steel mills, which were indicating a correction in plate prices, reduced their offers by up to INR 2,000/t ($27/t) this week.

Weak demand in the end-user segment has pushed mills to go for a revision while factoring in the seasonal disruptions caused by the monsoons.

JSPL has slashed its list prices by INR 2,000/t for Jul-Aug ’21 shipments. Current prices are assessed at 66,000/tonne (t), ex-works Angul, in comparison to last week’s 68,000/t, ex-works Angul.

Also, JSW Steel, a producer of high quality HR plates, has revised its list prices, SteelMint understands. The current effective list prices for HR plates from JSW Steel stands at around INR 69,000/t, ex-works Anjar. Last week’s prices were at 71,000/t.

“Buyers who were deferring their procurements earlier owing to high prices have started coming forward to finalise the orders. We see good realisation in export orders. Also, there is good demand and visibility from boiler and wind tower segments for HR plates as the market has softened. Recently, we have bagged an export order of 4,000-5,000 t,” a JSW Steel source told SteelMint.

“SAIL’s announcement on price revision might take a couple of days more,” said a distributor from Mumbai.

However, the domestic traders of hot-rolled (HR) plates have kept the prices stable this week amid sluggish demand and are expecting steel mills to further revise their list prices, SteelMint learned from credible sources.

For week 27, SteelMint’s benchmark assessment for HR plates (IS-2062/E250) of 5-10 mm thickness remains pegged to INR 65,500-66,500/tonne (t) exy-Mumbai. Prices are exclusive of GST @ 18%.

“Low buying interest in the domestic market is being fuelled by anticipation of further decline in prices alongside liquidity issues in the market,” said a trade source.

Domestic market sentiments are also hit by other factors:

  • Seasonal weakness in steel demand during monsoons.
  • Continual decline in global plate prices.

China’s steel plate export prices fall

China’s steel plate export prices fall for fourth consecutive week, making it the fourth straight week of decline. The Chinese heavy plate export offers dipped by $10/t this week.

With most overseas buyers concerned about the falling prices demand became weak from a few countries particularly South East Asia and South America. Also, China’s domestic market is to remain closed from 1-5 July on account of the centennial anniversary celebrations of the Communist Party.

The Chinese heavy plate export offers for the current week are assessed at $880-890/t FoB China, narrowing by $10/t from $880-900/t a week earlier on FoB basis for Aug ’21 shipments.

Outlook

SteelMint understands from market participants that the list prices of HR plates are likely to slide further by INR 3,000-4,000/t in the coming weeks amid sluggish demand in the domestic market.

 

AM/NS India produces special grade steel plates for nuclear reactors

Integrated steel producer AM/NS India has manufactured a special grade of steel plates (16Mo3) for use in the nuclear power sector, especially the heavy water reactors for the Nuclear Power Corporation of India Ltd (NPCIL), as per latest reports. The special flat steel grade, for which India relied on Europe till now, was designed and developed in collaboration with Larsen & Toubro Ltd, AM/NS India officials informed.

 

Japan: Nippon Steel raises plate price by $136/t for July spot sales

Nippon Steel, Japan’s largest integrated steel maker, has decided to add Yen 15,000/tonne ($136/t) onto its commercial-grade heavy plate by for spot sales in July in the context of rising input costs and tightening in supply, a company official confirmed on June 30.

“We will have to raise the prices for stable production, and we may have to increase prices further in the coming months,” she commented. The July price rise is after the increment by Yen 10,000/t in May, and so far, Nippon Steel has raised its plate price by a total of Yen 35,000/t so far in 2021, Mysteel Global noted.

The Nippon Steel official was unable to specify the exact plate price hikes to the long-term deal customers, as it is individually negotiated, though the degrees will be more or less the same, according to her.

Nippon Steel does not reveal its exact list prices for spot sales, and as of June 30, the SS400 grade 19mm thick (1,524×3,048 mm cut) heavy plate is transacted at Yen 108,000-111,000/tonne in the spot market in Tokyo, up Yen 1,000/t from last Friday and Yen 12,000/t higher on month, sources confirmed.

A Tokyo-based distributor expressed little surprise at Nippon Steel’s decision, sharing that inquiries on plate have been very active in the spot market, enabling distributors to be selective in orders. “Spot plate prices may be up further, and we should be making the best of the timing to digest the producers’ price hikes by asking customers to pay higher,” he added.

A Tokyo-based trader agreed, noting that plate supply has been tightening in Japan and globally in June, and overseas suppliers have already notified their Japanese buyers of substantial price hikes and lower export volumes.

South Korea’s Posco and Taiwan’s China Steel Corp (CSC), both being major plate suppliers to Japan, will raise their plate prices substantially for August-October shipments, and CSC will also reduce the supply volume during the few months to prioritize domestic sales, as reported.

As for demand, consumption from Japan’s long-term contract customers such as construction machinery manufacturers is expected to stay firm, as export orders have been robust and the country’s construction sector may expand further with projects already in the pipeline during the second half of FY21 (October-March 2022), according to market sources.

“New vessel orders have picked up too though still slowly, all these have encouraged producers to raise their prices,” the Tokyo trader added, and “plate supplies will not increase much as the Japan’s integrated mills have prioritized hot metal supply to hot-rolled coils, so nothing much for other products,” he predicted.

Japan produced 757,100 tonnes of plate in May, up 8.2% on year and 5.4% higher on month, according to the latest data by the Japan Iron & Steel Federation.

Written by Yoko Manabe, yoko.manabe@mysteel.com

This article has been published under an article exchange agreement between Mysteel Global and SteelMint.

 
India: JSPL may cut HR plate prices by INR 1,000/t for July deliveries

India: JSPL may cut HR plate prices by INR 1,000/t for July deliveries

Sluggish sentiments are continuing in the domestic HR plates trade segment over the past three weeks. Consequently, India’s leading HR plate manufacturer, Jindal Steel and Power Limited (JSPL) is mulling plans to cut the list prices of its plates by INR 1,000/tonnes (t), to bring these down to around INR 68,000/t, exy-Mumbai, SteelMint learned from credible market sources.

However, Steel Authority India Limited (SAIL), the country’s largest government-owned mill, is yet to take a call on revising its list prices, SteelMint understands. The current effective list prices for HR-plates from SAIL stand at around INR 69,000-70,000/t, exy-Mumbai.

Factors that impacted domestic price trend

  • Staggered lockdowns: The second wave of Covid-19 in India and the consecutive lockdowns announced in June ’21 kept market activity low. This largely impacted the demand for plates in the retail segment.
  • Consumption low from many end-user industries: Consumption of plates in the domestic market continues to remain low since the resurgence of Covid-19 in Mar ’21. Heavy engineering, industrial machinery, fabrication and ship-building are a few industries bearing the brunt of the severe second-wave of Covid-19. “The demand was largely coming from the projects which were announced earlier and are nearing their completion. There is no demand driver in the near term,” said a manufacturer.
  • Arrival of monsoon: The monsoons had hit the southern provinces of the country towards the middle of the month, which has further dampened demand that was already reeling under the extension of lockdowns. Also, the monsoons are a seasonally weak period for the steel market in India.
  • Global plate offers witness continuous decline: Global HR-plate export offers have witnessed a continuous decline throughout the month. The Chinese heavy-plate export offers for the current week are assessed at $880-900/t FoB China, down from the previous week’s $900-930/t FoB basis. In a similar vein, the offers have fallen by around $30-50/t as against $920-930/t FoB at the beginning of the month.

Why are global plate offers down?

  • Possibility of production curbs easing by the Tangshan government.
  • Continued air of uncertainty regarding levy of an export tax.
  • Expectation of a further cut in prices kept buyers on the sidelines.
  • Low demand from South East Asian countries on surging Covid-19 cases.

As of week 26, SteelMint’s benchmark assessment for HR-plates (IS-2062/E250) of 5-10 mm thickness dropped by INR 1,000/t to INR 65,500-66,500/tonne (t) exy-Mumbai as against INR 66,500-67,500/t exy-Mumbai a week back. Prices are exclusive of GST @ 18%.

What next?

Summing up the month’s snapshot, it is clear that the market did not accept the hike announced by mills for June ’21. Also, the monsoon will keep demand from construction and infrastructure at bay for the next couple of months. However, steel manufacturers foresee a revival in demand from power, energy, OEMs, wind tower and fabricators by the end of July or early Aug ’21.

“Currently we are seeing demand mainly from water pipeline projects, and the government projects announced earlier,” said a market participant.

Thus, it would be interesting to see to what extent the mills will revise prices for July deliveries amid such mixed sentiments.

 
India: Infra, power to drive HR-plates demand

India: Infra, power to drive HR-plates demand

Demand for domestic HR-plates has been low for a few months. This trend has been propelled by the major impact of Covid-19-led disruptions and a weak buying interest from end-users on account of higher product prices.

However, the governments’ drive to increase the dependence on ‘green’ electricity, expanding the metro network and electrifying more railway routes is likely to push up the demand for HR-plates in the country.

Furthermore, the country’s infrastructure and construction and power segments are set for a rebound in 2021, which in turn is likely to push up HR-plates demand:

Some orders and projects listed below may rev up the sectors.

Infra and construction

1.KEC International bags orders worth INR 429 cr from civil, railway sectors:-KEC International, has secured new orders of INR 429 crore for civil segment developments and railway projects in India. Along with this, the company has bagged INR 508 crore worth of orders in both Indian and overseas markets.

a)Railways:Indian Railways(IR) has secured orders of INR 294 crore in conventional/ emerging segments in India encompassing overhead electrification(OHE) along with orders for semi high-speed rails for 2 x 25 kV OHE and associated works.

b)Civil:Infrastructure works in the metals and mining segment in India account for INR 135 crore.

c)Cables:Orders worth INR 90 crore have been placed for various types of cables in India and overseas.

d)Transmission and distribution(T&D):Project orders under this segment envisage wider reach across India, Middle East and the Americas. Orders secured for transmission lines and substation construction are worth INR 418 crore.

2.NHAI InvIT gets Sebi nod:The National Highways Authority of India (NHAI) is expected to launch its maiden infrastructure investment trust (InvIT) in a month. The InvIT model, as a concept, has been designed to monetise roads over the next 3-5 years.

On this accord, NHAI has received an approval from the Securities and Exchange Board of India (Sebi).The trust aims to raise INR 5,100 crore, with plans to offer 19 projects worth INR 35,000 crore.

3.NMRC floats tender for Noida-Greater Noida corridor:The Noida Metro Rail Corporation (NMRC), has floated a tender for construction of a 9.6 km long corridor of the Aqua Line (Noida Metro). It involves construction of five elevated stations at Sectors 122 and; 123, Ecotech 12 and Greater Noida Sectors 2 and 4.

The deadline for development of this patch is kept at 24 months from the date of awarding it to the selected bidder.

Limited responses to the tender in the past have led to cancellation of this tender thrice in July ’20, Nov ’20 and Feb ’21.

Power projects

Sterlite Power secures INR 580 cr funding from REC: Sterlite Power has financially closed the project set up by Udupi-Kasargode Transmission Project(UKTL). It has secured the entire debt funding of INR 580 crore from one of India’s largest power sector lenders, REC.

The project includes a 1,000 MVA 400/220 kV Gas Insulated Substation(GIS), the first to be built at Kasargode in Kerala. This 400 k V(Quad) DC inter-state transmission system project spans the southern states of Karnataka and Kerala.

Price trend as of week 25:-

SteelMint’s benchmark assessment for HR-plates(IS-2062/E350) of 5-10 mm thickness, on 17 Jun ’21, had dropped to INR 66,500-67,500/tonne($896-909) exy-Mumbai as against INR 67,000-68,000/t($916-930) exy-Mumbai. Prices are exclusive of GST @ 18%.

Way ahead

The construction and infrastructure industry is expected to be driven by a combination of factors to recovery in 2021. These include government housing schemes, a large captive market and massive pent-up demand after Covid-19 restrictions ease.