Monthly Archives: July 2012

Spot iron ore offers remain unchanged;Chinese traders see some stability

Spot offers on Chinese ports kept unchanged sighting some stability in steel prices and sentiments.A cargo of PB fines of 61.5 Fe was heard to be sold at $115/t.

“There are not many buyers nor sellers in the market,prices might stabilize at these levels.” said a local iron ore trader based in China.

Indian 63.5/63 Fe unchanged at $124-125/t,CFR.In Indian local market there is some demand generating for low grade iron fines as traders anticipate some rise in spot prices in coming weeks.

Sources say 52% Fe iron fines is sought for Rs 2,200-2,300/t (Delivered Vizag Port).


Indian producers likely to keep Flat prices same for August

Indian flat steel producers likely to keep offers unchanged for August reported market participants.Current prices are hovering in the range of INR 35,000-36,000/t ($625-640) ex-works for 2.5 mm HR coil.

“We bought HR coil from Tata steel at Rs 35,600/t,ex-works and we can sense some demand coming in the month of August.”said a tube manufacturer based in Jamshedpur.

Last two months were very dull,over that cheaper imports have also weighed on prices.But we feel prices will be kept unchanged for August as they have almost touched bottom, he further added.

Market participants also report that Chinese HR prices have started firming up after it went down to $580-590/t CFR India.


Billet offers rise by Rs 500/MT at Mandi Gobindgarh, India 

In Mandi Gobindgarh, offers move high by Rs 500/MT to Rs 34,500/MT (Basic Price)on reasons such as some improvement in demand , shortage of stock, less availability of power for only around three days and no rains. We had stopped stocking of Billet because demand was quite weak but as it has improved now, we are facing supply problems”, said traders.

Though, offers rise up to Rs 300/MT in states like Chhattisgarh, West Bengal and Gujarat but there are not many buyers asking for the semi finished material.

Chennai: Billet prices are around the same level with low buying interest. 



Indian ferrous scrap prices show signs of improvement

SteelMint domestic
Ferrous Scrap Index inches up by 0.41%% from last week and reaches 88.11 points
on Tuesday.

Indian ferrous scrap offers have slightly moved
up in line with the rise in Ingot prices. Prices have increased by Rs
200-300/MT despite lower buying interest.

Power blackout in North and East India might
impact on the demand for scrap in the coming days.

Further, HMS scrap
from ship breaking also traded higher at Rs 23,500/MT in Bhavnagar i.e. up by
Rs 100/MT from previous trade. Offers for rolling plates Plate cutting scrap
have also moved up by Rs 200-400/MT. Scrap of 4 ANI plate traded at Rs 24,000/MT,
6 ANI at Rs 25,300/MT and 12 ANI at Rs 26,400/MT.

It is reported that
scrap suppliers in Chennai are unwilling to correct their prices due to high
cost of the material. Currently, HMS (80:20) is being offered at Rs 24,800/MT (basic
price). Buyers are asking for more discounts but suppliers are in no hurry to
sell the material at less than its cost.


Indonesia miners cut 2012 thermal coal output forecast

Thermal coal output in Indonesia, the world's top exporter of the fuel, could be steady this year with 2011, at around 360 million tons, an industry group said on Tuesday, cutting its forecast as a global oversupply puts pressure on the industry.

“We see we may not reach our target of 390 million to 400 million tonnes, and the chances are it will be the same as last year,” Supriatna Suhala, executive director of the Indonesian Coal Mining Association, told Reuters.

Indonesia is the top supplier of thermal coal to China, its main market, but a slowdown in the Chinese economy coupled with increasing output from Chinese hydropower stations has led to declining demand for power station fuel from the world's second-largest economy.

Chinese traders scrapped import deals for at least 2 million tonnes of coal in July, with coal stockpiles already full at Chinese ports and cargoes waiting to offload.

“I hear that a lot of coal has been rejected. They have requested delaying shipments. There are also many cases where they cannot offload because ports are already full,” Suhala said, adding that smaller operations with high stripping ratios had been forced to close because operations were no longer profitable.

“If prices go below $70 per ton, companies with stripping ratios above 10 begin to get hit. Still, we are in a better position than Australia or South Africa,” he said, explaining that Indonesian coal mines benefited from being close to cheap river transport and seaports. “That's our competitive advantage.”

The excess supply has also hammered thermal coal prices in recent months. Australian thermal coal on the global COAL Newcastle index, the benchmark for Asian coal, closed at $88.41 on Friday, after prices plummeted from above $125 ton in the first quarter of 2011.

“The biggest problem is oversupply, because the United States has started pouring their production into East Asia, to Japan, Korea and Taiwan. And also Canada has started exporting,” Suhala said.

Source: Reuters


Sponge iron prices in Raigarh move up by Rs 400-500/t

WIth Jindal power restoring power supply to more than 50 units from 1st of August, sponge prices shot up by Rs 400-500 per tonne in Raigarh (Chattisgarh).

“There were few buyers couple of days back as production was on hold, since power is restored demand for sponge have improved. Also rising ingot prices in Raigarh has supported sponge prices.Current offers for sponge iron are at Rs 21,000/t (Next Day Payment,Ex-Works), where as ingot is being offered at Rs 29,600/t (Next Day, Ex- Works).” said a local broker based in Raigarh.


Odisha miners might cut Iron ore prices by Rs 500/t for August

Market participants report steelmint that private miners in Odisha might cut their offers by Rs 500/t in August on falling sponge prices.

“We are expecting prices to go down by at least Rs 500/t as supply of iron ore has increased from Odisha sector and sponge prices are not in parity with current iron ore prices.Big miners like Rungta are offering 63% CLO at Rs 8,050/t (Loaded to wagons) which is way higher.” said a sponge manufacturer based in West Bengal.

Another trader based in Odisha reported that queries have gone down on falling steel prices, recently a fairly large miner has cut its prices by Rs 800/t and others will follow the suit.

When big miners are reported, they said management is reviewing the current scenario and prices might be declared tomorrow.


New, bigger power blackout: North and east India sweat it out

The entire northern and eastern power girds collapsed on Tuesday afternoon, knocking off electricity in eastern India and shutting Metro trains in Delhi.  West Bengal, Jharkhand, Bihar, Orissa, Jammu, Himachal Pradesh,
Punjab, Haryana, Uttarakhand, Rajasthan and the national capital are affected by the power failure.

* As many as 125 trains have come to a halt between Ghaziabad and Mughalsarai railway divisions.


RBI keeps key policy rates unchanged

The Reserve Bank of India (RBI) in its April-June quarter monetary policy on Tuesday left the key policy rate unchanged. However, it cut the statutory liquidity ratio (SLR) to 23% from 24% earlier. Now, the repo rate or the rate at which banks borrow from RBI remained at 8% while the reverse repo rate at which, the banks lend to RBI stood at 7%.

“Keeping in view the slowdown in growth, the Reserve Bank frontloaded the policy rate reduction in April with a cut of 50 basis points.

Subsequent developments suggested that even as growth moderated, inflation remained sticky. Keeping in view the heightening risks to inflation, the Reserve Bank decided to pause in the Mid-Quarter Review (MQR) of June 2012, even in the face of slowing growth,” D Subbarao, the governor of RBI said in the first quarter policy statement.

Meanwhile, the central bank raised the baseline projection of WPI based inflation to 7% for March, 2013 as against the earlier projection of 6.50%. This clearly suggests that RBI may not slash policy rates in a hurry unless the rate of inflation tapers down.

Source: Moneycontrol