Monthly Archives: May 2014

E-Auction Iron ore

India: MSTC to conduct Auction for Sale of Iron Ore

Metal Scrap Trade Corporation (MSTC) invites bid for sale of Iron ore from different Iron ore mines/stockyard at Karnataka.

The three auctions are schedule on the same day i.e. 06 Jun, 2014 at 11.00 hrs, 13.00 hrs & 15.00 hrs at IST.

The e-auction is for registered Steel, Pig iron, Pelletization, Sponge iron and Beneficiation plants which have been wholly/partly dependent on Iron ore from Karnataka for their own use.

Auction 1

  • Iron ore fines: 296,000 MT
  • Iron ore lumps: 56,000 MT
  • Total quantity: 352,000 MT

Bid opening time: 11.00 hrs on 06 Jun, 2014

Auction 2

  • Iron ore fines: 104,000 MT
  • Iron ore lumps: 124,000 MT
  • Total quantity: 228,000 MT

Bid opening time: 13.00 hrs on 06 Jun, 2014

Auction 3

  • Iron ore fines: 336,000 MT
  • Iron ore lumps: 80,000 MT
  • Total quantity: 416,000 MT

Bid opening time: 15.00 hrs on 06 Jun, 2014

Bid Submission Due Date: Before 10.00 hrs on 06 Jun, 2014

Royalty, Forest Development Tax, Sales tax, Cess and other statutory duties & levies etc applicable at the time of supplies will be extra and payable by the successful bidder.

 

India: Single Buyer in Karnataka’s Last Iron Ore E-auction

MSTC has declared the results of the Karnataka Iron ore e-auction held on 29 May,14. As per the result, the total quantity offered by private miners was 248,000 MT while the total quantity sold amounted to 24,000 MT.

The most surprising fact about this e-auction was that there was only one buyer-MSPL. The company procured 24,000 MT Iron ore fines at INR 3,800/MT (basic). Thus, it can be inferred that MSPL had purchased fines which was put on auction from its own mines. 

24,000 MT Iron Ore sold

 Type

Qty Offered

Qty Sold

Lumps

120,000

Nil

Fines

128,000

24,000

Total

248,000

24,000

Qty in MT
Source: SteelMint Research

Only 10% of the total offered quantity was sold as in previous e-auction held on 26 May,14, buyers had purchased Iron ore in big quantities (87% of the total material offered was sold).

Also, fines prices were higher by INR 200/MT & lumps was expensive by INR 400/MT in comparison to previous e-auction. 

Floor prices  as on 29 May,14 

MSPL

RMML

Grade

Material Type

Floor Price

Grade

Material Type

Floor Price

Fe 65

Fines

               3,800

Fe 63

Lumps

           4,100

Fe 65

Lumps

               4,800

Fe 60

Fines

           3,500

Fe 64

Lumps

               4,650

Fe 58

Fines

           3,200

Prices in INR/MT
Basic Prices; Royalty Extra; FDT as applicable
Source: SteelMint Research

In comparison with last private mines e-auction conducted on 26 May,14, the floor & bid prices for Fe 64 Fines remain unchanged at INR 3,800/MT (basic).

 
Coal Import

India: Coking Coal Imports decline by 15% from Australia W-o-W

Coal Import
Coal Import

Coking Coal imports at Indian ports stood at 0.79 MnT, which showing decline by 13.6% as compared to preceding week during the week ended on 24 May.

India has imported around 0.79 MnT Coking Coal at the end of Week 21. Out of total weekly Coal imports around 18% of Coking Coal has been imported from different destinations. However at the end of Week 20, around 0.9 MnT of Coking Coal was imported.

From Australia, India has received around 0.59 MnT Coking Coal and registered a decline of 15% against the previous week.

During the week 21, India has received Coal from Australia, South Africa & Mozambique. Out of the weekly imports, India has imported about 0.16 MnT from South Africa at Dhamra port. Mozambique, one of the exporting countries of Coking Coal to India, has supplied around 0.03 MnT at the end of week 21. Total imported quantity belongs to JSPL.

As per the consideration of 33 major & minor Indian ports, Paradip has imported highest quantity i.e. around 0.18 MnT of Coal. The second highest quantity port was Dhamra, imported around 0.16 MnT of Coking Coal from South Africa.

Week 21 Coking Coal

JSW Steel, SAIL & Essar Steel are the major importers of Coking Coal at the end of week 21 and imported around 0.16 MnT, 0.12 MnT & 0.08 MnT respectively. RINL has imported around 0.08 MnT Coal from Australia at Gangavaram port.

The ports considered are: Dahej, Mormugao, Navlakhi, Mundra, Mumbai, New Mangalore, Hazira, Kandla, Bedi, Porbander, Dahanu, Dharmatar PnP, Dharamtar Ispat, Tuticorin, Jaigarh, Dighi, Revdanda, Magdalla, Pipavav GPPL, UTCL- Pipavav, Sanghi, Sikka, Okha, Muldwarka, Dhamra, Ennore, Gangavaram, Haldia, Krishnapatnam, Kakinada, Paradip, Vizag & Karaikal.

 

 
Indian Billet Market

Indian Billet Prices at USD 550-570/MT Ex-Works

Indian Billet prices has showed some resistance and dropped upto INR 1,000/MT (USD 17/MT) in last one week owing to subdued demand in Re-bars & Structures. Current offers for commercial grade Billet are in the range of INR 32,000-33,400/MT (USD 540-570/MT) on Ex-works basis. In India, Odisha is offering Billet at the lowest price i.e. at around INR 32,000-32,100/MT.

Indian Billet Market
Major Billet Markets in India

Load Cities

Domestic Prices

Truck Freight to unload Cities

 

 

Gaziabad

Mandi Gobindgarh

Rourkela

                     32,100

                   2,900

                         3,600

Jharsugda

                     32,000

 –

 –

Raigarh

                     32,300

                   2,600

                         3,000

Raipur

                     32,700

                   2,700

                         3,000

Durgapur

                     33,400

 –

                         2,600

Jalna

                     33,100

 –

 –

Hyderabad

                     33,500

 –

 –

Wada

                     33,400

 –

 –

Mandi Gobindgarh

                     36,500

 –

 –

Gaziabad

                     35,100

 –

 –

Kutch

                     34,200

 –

                         2,500

Commercial grade Billet
Basic Prices; Excise and Taxes Extra
Freight charges for reference
Note: USD 1 = INR 58.5 

Indian domestic Billet prices looks to stabilize at current levels considering restricted supply of Iron ore, after the Supreme Court’s order on partial mining ban in Odisha on 16 May, 2014. Steel prices have moved up sharply since then.

With Iron ore supply remain still restricted from Odisha, Sponge iron prices should find support.

Trade sources confirmed SteelMint that manufacturers based in Chhattisgarh & Odisha are getting better realizations in other markets like Punjab & UP. Some of the big manufacturers based in this region are selling significant quantities to other states.

Indian Export Offers too high compared to Global Market

Higher prices in domestic market have made manufacturers to raise their offers in global market. Currently, offers are too high as compared to global market.

“At current offers there is hardly any demand for Billet from any country. Global prices are much cheaper than Indian offers, which will not be less than USD 580-590/MT FOB (East/West Coast). There is no scope of exports from India at the moment,” said a manufacturer based in western region of India.

On similar lines, re-rollers based in Nepal who are dependent on imported Billet from India mentioned that offers have gone up from Indian suppliers. Current offers are in the range of USD 560-570/MT Ex-Works Odisha (loaded to Wagons) for good quality Billet. Freight to nearest India-Nepal border by railway would be INR 1,800/MT (USD 30/MT).

 

India: TANGEDCO invites Bid for Procuring Steam Coal

Tangedco logoTamil Nadu Generation & Distribution Corporation (TANGEDCO) invites tender for supply of imported Steam Coal of any origin.

The company is looking procurement for the period from Sep’14 to Mar’15, for its Thermal Power Stations of TANGEDCO  at Kamarajar (Ennore), Karaikal  & Tuticorin port.

Sealed bids are invited by TANGEDCO for supply of imported Steam Coal of any origin at following ports:
4,000,000 MT + shipping tolerance to Kamarajar Port (Ennore)/Karaikal Port and
1,000,000 MT + shipping tolerance to Tuticorin Port

General Conditions

  • Tenderer should have supplied 1.0 MnT of imported Steam Coal of any origin directly or through PSUs to any of the public and/or Private Power Utilities and/or public/private industrial units in India in past four financial years
  • Tenderer should have an annual average turnover of INR 10 billion during the 4 financial years
  • Tenderer should have valid tie-up with mine owners till the completion of the contract 

Specifications

  • Gross Calorific Value (Air Dried basis): 5,800-6,700 Kcal/Kg
  • Fixed Carbon (Air Dried basis): 30-50%
  • Total Moisture (As Received basis): 7-23%
  • Ash content (Air Dried basis): 2-8%
  • Size: 0 to 50 mm 

Country of Origin: Any origin

Total Quantity:   5 MnT (5,000,000 MT)

Bid Currency: Should be quoted only in USD/MT

 Important Time & Dates

  • Bid submission due date: 04 Jul, 2014 at14.00 hrs IST
  • Tender opening date: 04 Jul, 2014 at14.30 hrs IST 

Note:  MAHAGENCO invites Bid for 3.4 MnT Imported Coal

Maharashtra State Power Generation Company (MAHAGENCO) invites online bid for purchase of Non-coking (Steam) Coal of Foreign origin.
The company is inviting bid through e-tendering process, for its Bhusawal, Khaparkheda, Chandrapur and Koradi thermal power stations/projects.

 
Ferro Silicon

India: Ferro Silicon Prices Static; Market subdued

Ferro Silicon prices remain unchanged as demand for the material is meek from end-users. The general market expectation is prices to remain at this level for some time.

In Bhutan, Ferro Silicon prices are stable as the market remains pressured by low demand. Currently, price of Ferro Silicon (grade 70-75) in Bhutan is settled at around INR 76,000/MT. However, few producers are not offering any material for June as they have tied up with major Indian steel companies and can only supply to them. Bhutanese producers reported of frequent enquires from overseas buyers. With better demand from Europe, export offers from Bhutan have increased to USD 1,370/MT FoB Kolkata.

A Bhutanese producer stated, “Buyers continue to stay on the sidelines amid a lackluster market.”

Indian Ferro Silicon market witnessed no price movement, as demand remains low. This is however offset by low material on offer in the open market as producers of Ferro Silicon have tied with companies to fulfill bulk orders. In Guwahati, Ferro Silicon (grade70-75) is being offered at around INR 73,000-73,500/MT. The buyers of Ferro Silicon are being cautious in their approach, and there is visibly less demand. The dollar rate fluctuation could influence Ferro Silicon market in coming days.

A Meghalaya based producer said, “I expect the price of Ferro Silicon to remain steady in the  next month, as there is limited but regular demand.”

On the future outlook, market participants expect that Ferro Silicon market to pick up in July as traditionally there is good demand from foundries in Q2 (July-August). SteelMint assessed that low demand is resulting in stability of prices, and the state of Indian Rupee in terms of USD is going to be the determining factor in near term Ferro Silicon price.

Exchange Rate: USD 1= INR 59.04

 

 
Narendra_Modi_Sail

India: Newly sworn Government expected to clear INR 500 Billion Projects

Environmental clearances for INR 500 Billion worth of projects are expected by Narendra Modi’s government in two days, which was stuck at different steps of sanction, at the Central and state government.

SailIt is anticipated that on investment set up by the prior UPA government to fast-track project consent, things will be carried out, instead of passing through the Cabinet Committee.

 

According to sources of environment ministry

  • 28 projects include those of SAIL and Rashtriya Ispat Nigam in the public sector, and those of Aditya Birla Group companies Essel Mining and Grasim in the private sector
  • SAIL’s  190 Billion investment for 1 MnT pa Pellet plant at its Dalli-Rajhara mines in Chhattisgarh and the expansion of the marquee Bhilai Steel Plant (BSP) and its captive power project have been put forward to environment ministry’s Expert Appraisal Committee
  • Investment of 90 Billion by Essel Mining as it plans to more than double the capacity of its Iron ore mine at Koira in Orissa’s Sundargarh district to 4 MnT pa from the current 1.5 MnT pa and setting up of 1.2 MnT pa Pellet plant
  • Grasim Industries limestone mine spread over 251 hectares in Raipur
  • Proposal from pharma companies, including sanction for their feedstock inputs and fuel

Minister of State (Independent Charge) for Environment Prakash Javadekar on Thursday said, “We will strike the right balance in conserving ecology and according approval to projects and promise to ensure ‘fast clearances’ to these projects, but in a transparent manner.”

 
Beam

India: Buyers refuse to purchase on regular Price fluctuation

Structural buying is already low because of limited demand from projects and now buyers hold the buying owing to regular price fluctuation.

Regular fluctuation in Structural prices holds the buying. Market players cautiously looking for stability of semi finish prices. Also, Sponge & Scrap prices closely watch by them.

Durgapur: Demand is poor but high prices of semi finish are building pressure on manufacturers to hold their offers unchanged. Increased stock level has pushed the manufacturers to cut around 30% of total production.

Raipur: Raipur’s Structure prices slightly down on increased stock and lesser buying. Some of the well known brand based at central India reduced offers upto INR 500/MT.

Hyderabad: Trade movement is sluggish on Telanghana issue. According to a trader based at Hyderabad, “No deals are taking place from last 2-3 days which led to decline in prices.

Mumbai: Structure offers in Mumbai also fell in past few days but buying is stable. Mumbai based market players anticipate that market may show cheerful demand after monsoon.

Offers in Ahmedabad & Ghaziabad remain unchanged. Also, market participants expect prices to firm further.

Brand-wise Structure Prices as on 29 May, 2014

Brand

City

Size

Price

SKS

Raipur

200 Beam

35,900

Grace Casting

Ahmedabad

75 Channel

35,700

BSPL

Durgapur

50 Angle

37,100

Ghasiram

Mumbai

75 Channel

38,400

K.L. Steels

Ghaziabad

150 Beam

38,900

Note: Basic prices in INR/MT; Only refrence prices; Prices may vary location wise; Payment cash; Ex-Plant

 

JBG Group offers for Sale of Coal Fines

Jai Balaji Jyoti Steels Limited, a JBG Group company, is offering 30,000 MT of Coal fines for sale at Tainser, Sundargarh (Odisha).

Coal fines, is a small particle of Coal (size 0-5 mm), formed during mining & cleaning of Coal.

Material is lying at plant site (Jai Balaji Jyoti Steels Limited) which is situated at 20 km from Rourkela Steel plant
and 35 km from railway siding Biramitrapur.

Buyers have to quote their price on Ex-Plant basis.

SpecificationCoal Fines

  • GCV: 3,300/3,400 Kcal/kg
  • FC: 30 (+/-1)
  • VM: 23 (+/-1)
  • Moisture: 7-8%
  • Size: 0-5 mm

Quantity: 30,000 MT

Offers Closing Date: 05 Jun, 2014

Note: Interested buyers may contact for their quotation to the Director through email on jaibalaji.jyoti@jaibalajigroup.com or by phone:

Contact Person: Mr. Sanjay Ladia
Mobile Number: 09337003726

 
Wire Rod

Indian Wire Rod Prices firm after 13-15% Upside

wiresIndian Wire rod prices are unchanged today on stable raw material prices. Offers have gained by 15% in Durgapur Y-o-Y, whereas it stimulated by 13% in Raipur. Current offers are the highest in last one year for both cities.

Wire market has played strongly and reached at the highest level of last one year. It is not only because of strong demand & supply, high offers of raw material and other market scenario are also the reasons.

Wire rod prices have gained by 13-15% Y-o-Y. A bounce of INR 1,500-2,500/MT has witnessed in week 21 of 2014 owing to sudden hike in raw material prices across the country. Offers have escalated on speculation of raw material shortage as the Supreme Court has ordered mining ban on 26 Iron ore mines of Odisha.

A native Wire rod trader of Durgapur said, “Sale is very low in Durgapur as its offers are very high. Demand from Delhi & Chennai has declined this time.”

A Wire rod manufacturer based in Raipur said, “Wire rod is used in making HB, Binding, GI and Barbed Wires. At present, manufacturers of these products have reduced their buying interest as they also have low demand for their products. As a result demand is below average in the city. But due to sudden price hike in Ingot/Billet, we had to increase offers as its rates are fully based on raw material prices.”

Wire Rod


Indian Steel Prices as on 29 May, 2014

Item

Size

Raipur

Durgapur

Price

Change

M-o-M

Price

Change

M-o-M

MS Billet

100×100 mm

32,850

+ 150

+ 950

33,500

+ 100

+ 1,700

Wire Rod

5.5 mm

37,200

0

+ 900

37,300

0

+ 1,000

Binding Wire

20 Gauge

45,800

0

+ 2,000

46,800

0

+ 2,300

HB Wire

12 Gauge

39,100

0

+ 900

39,350

0

+ 1,050

Basic regular prices
Excise Duty @ 12.36%; VAT as applicable