Monthly Archives: September 2014

India: Sesa Sterlite Iron Ore Update of Q2 FY15

  • Sesa Sterlite has sold about 0.96 MnT Iron ore in Q2 FY15 and 0.93 MnT in Q1 FY15 from Karnataka & Goa
  • Realization in Q2 FY15 has decreased owing to low prices in the global market
  • Karnataka operations have been stopped because of new amended Rule 24 (A)(6) – of MC Rules 1960
  • Mining operations in Goa is yet to start

Sesa Sterlite Iron Ore Sale in Q2 FY15

Company

Jul’14

Aug’14

Sep’14

Grand Total

Karnataka

Karnataka

Goa

Karnataka

JSW Steel

         396,000

         32,000

 –

 –

   428,000

Sesa Sterlite

             8,000

         12,000

         318,624

 –

   338,624

BMM Ispat

         100,000

 –

 –

 –

   100,000

Janki Corp

           48,000

 –

 –

 –

     48,000

Biop Steels And Power 

             8,000

           4,000

 –

 –

     12,000

Kirloskar Ferrous Industries

             8,000

 –

 –

 –

        8,000

Sunvik Steels

             8,000

 –

 –

 –

        8,000

Hindusthan Calcined Metals 

 –

           4,000

 –

 –

        4,000

Jai Raj Ispat

 –

           4,000

 –

 –

        4,000

Mahamanav Ispat 

 –

           4,000

 –

 –

        4,000

Rangineni Steel 

             4,000

 –

 –

 –

        4,000

Royalline Resources

 –

 –

             2,000

 –

        2,000

Total

         580,000

         60,000

         320,624

 Nil

   960,624

Qty in MT
Data till 29 Sep, 2014
Source: DGM, SteelMint Research

Sesa Sterlite W. A Iron Ore Grade & Bid Price

State

Month

 Category

W.A Grade

W.A Bid price

Karnataka

14 Jul’14

Fines

55.5

                           1,322

Lump

59.3

                           3,264

14 Aug’14

Fines

63

                           3,470

Lump

62

                           3,700

14 Sep’14

Fines

Nil

Nil

Lump

Nil

Nil

Goa

14 Aug’14

Fines

53

                              896

Lump

59

                           1,185

Basic prices in INR/MT
Source: DMG, SteelMint Research

Sesa Sterlite Iron Ore Sale in Q1 FY15

State

Apr’14

May’14

Jun’14

Total

Karnataka

  516,000

         52,000

         120,000

688,000

Goa

         246,336

         246,336

Total

  516,000

298,336

         120,000

934,336

Qty in MT
Source: DGM, SteelMint Research

 

India: SAIL seeks for Sponge Iron Conversion Agent

SAIL has invited tender for conversion agent to convert Iron ore into Sponge iron for its captive use.

Alloy Steels Plant (ASP), one of the SAIL’s units, has invited bid for conversion agent to convert Iron ore into Sponge iron  at Durgapur (W.B).

Agent’s Scope of work will be conversion of desired grade of Sponge iron in their own rotary kiln, unloading of Iron ore from rakes, transportation of Iron ore at their places for conversion.

SAIL or ASP will supply Iron ore at free of cost from SAIL’s RMD/Gua Iron ore mine or any other mines on rake load basis. All handling work will be done by agent on their own risk.

Eligibility

  • Tenderers should be an Indian producer of Sponge iron having manufacturing unit (kiln)
  • They should have production capacity of 100 MT per day or they should allow their full rotary kiln of min 100 TPD for ASP on conversion basis
  • They should have production experience of at least 18,000 MT in a span of 12 months since 01 Apr, 2011 or later
  • They should have necessary valid documents (coal linkage) for sourcing of coal for Sponge iron production

Specification of Sponge Iron

  • Fe: 77% min (metallic)
  • Fe: 87.5% min (total)
  • Size: 3-18 mm

Period of Contract:  9 months period that will start tentatively from Nov’14. However, SAIL can extend this contract period.

Quantity:  25,000 MT

On daily basis 100 MT of Sponge iron will be delivered by agent.

Important Time & Dates

  • Bid submission due date: 12.30 hrs IST on 21 Oct, 2014
  • Technical bid opening time: 14.30 hrs IST on 21 Oct, 2014
 
structure

India: Fresh Demand arrived for Light Structure; Heavy Structure Offers remain Stable

Light Structure offers in Raipur have risen by INR 300-500/MT in last 1-week. Heavy Structure manufacturers are mainly focusing to supply their material for projects. Semi finish prices have inched up by INR 200-400/MT, while, production remains low.

SteelMint sources confirmed fresh demand for Structure has arrived in the market from last 8-10 days mostly in Central India (Raipur), which is India’s one of the largest producer & supplier of finished steel products.

In a week’s time, light Structure prices have raised by INR 300-500/MT in Raipur and heavy Structure offers remain at the same level with minor fluctuation of INR 100-200/MT. Manufacturers mentioned there is decent demand for heavy Structure , so they have increased their production to around 60-70%, which was earlier only 40-50%.

“Buying for project works has improved from last couple of weeks. However, from the local market, it remains sluggish. It is expected that post Diwali, sales are likely to boost up,” shared a Structure manufacturer, which is producing around 5,000-6,000 MT light & medium Structures per month.

Another manufacturer based in Raipur stated, “Heavy Structure prices remain unchanged with minor fluctuation of INR 200-300/MT. Amid short supply of Coal, Structure prices may hike by INR 500-1,000/MT in coming weeks.

In Mumbai, Structure prices have fluctuated by INR 500/MT in 1-week.Whereas, Ingot/Billet prices have fluctuated by INR 300/MT. Meanwhile, Scrap prices have also corrected marginally by INR 200-300/MT.

Structure prices in Ahmedabad have moved up by INR 300-400/MT in last week. However, Scrap prices in Alang have fallen by INR 200/MT W-o-W. While, light & heavy Structure prices in Durgapur have also corrected by INR 100/MT.

Particular

        Size

Price (Basic)

Price#(All Tax)

W-o-W

M-o-M

Mandi Gobindgarh

40 Angle

36,400

42,900

+  450

–  100

Ghaziabad

200 Channel

38,000

44,400

–  150

–  160

Raipur

40×5 Angle

33,800

39,100

+  63

+  275

Raipur

200 Channel

34,700

40,200

+  50

–  100

Mumbai

40 Angle

35,600

42,000

–  400

–  700

Mumbai

100 Channel

36,400

42,900

–  400

–  700

Weekly prices in INR/MT

 

India: Semi Finish Production likely to increase post Festival – Reports

Secondary manufacturers have raised MS Ingot/Billet prices by INR 200-400/MT W-o-W. However, trade volume remains thin in the local market as well as nearby states owing to festive season.

MS Ingot/Billet prices have risen by INR 200-400/MT. Whereas, Sponge iron prices also inched up by INR 100-300/MT with dull trade volume.

Market participants expect that post Dushera and festival season, finished steel demand is likely to pick up from the current levels along with increase in production. Also, raw material crisis in the country will support the prices.

Finished steel trader in Mumbai says, “Long steel demand is likely to improve. We believe prices will also increase by INR 500-1,000/MT in coming weeks as buying sentiment seems to be robust.”

Punjab: Night Power Tariff down by INR 1.5 per unit; Production may increase

Reduction in power tariff by INR 1.50 per unit (i.e. from 01 Oct, 2014) in Punjab is likely to raise the production in night as well as in day shift. Cut in production cost will also provide some relief to MS Ingot/Billet and finished steel manufacturers after a long time.

Furnace manufacturer based in Mandi added, “Decline in power tariff by INR 1.50 per unit will reduce the production cost by INR 1,000-1,200/MT as to produce 1 MT of MS Ingot, we require 600-650 units of electricity. It will surely reduce the prices but production is expected to increase.”

Limited Viability of Semi Finish to North India

In Rourkela, Ingot/Billet offers are cheaper by INR 1,500/MT as compared to Raipur & Durgapur Ingot/Billet prices. MS Ingot is being traded at INR 28,900/MT and MS Billet is offered at INR 29,300/MT. Freight to Mandi is around INR 3,400/MT, which makes FOR price (Billet) to around INR 33,300/MT (including CST). Amid low electricity price in Mandi, it  is expected Ingot/Billet offers fall by INR 400-600/MT from present level, which will not support the buying to outside-state. Similarly, viability from Durgapur is also limited as transport remains closed owing to Durga Puja.

Manufacturers based in eastern India mentioned, “Market is likely to close for 6-7 days from 01 Oct, 2014 onwards owing to Durga Puja. Dispatches are also expected to halt during these days.”

MS Ingot_Price Movement
MS Ingot_Price Movement
 

Indian Foundry Grade Pig Iron Prices Stable on Low Demand

Indian Foundry grade Pig iron prices remain unaltered in the range of INR 31,500-33,000/MT (including Excise).

Tata Metaliks from last 2 months have maintained its Foundry grade prices at around INR 32,500/MT. Sources reported despite dull market in Durgapur, the company has managed to sustain its prices by vending all its material to northern market.

While in northern market, a trader based in Ludhiana said, “Here, trades seem to have improved slightly from past 2 days but as a whole, market is still sluggish. Currently, Foundry grade is traded in the range of INR 32,500-33,000/MT. Also, trades were heard to be settled at INR 32,200-32,300/MT in case of well negotiated.”

On the other hand, Southern market has witnessed a minor correction in Foundry grade Pig iron prices. Manufacturer based in Koppal has corrected its prices by INR 1,000/MT (M-o-M) to INR 31,700/MT. Whereas, manufacturer based in Goa is offering it at INR 31,500/MT (landed cost to Karnataka market; including Excise).

Meanwhile, Foundry grade Pig iron market in Gujarat remains unchanged. Material here is being offered at around INR 33,000/MT.

(all prices are including Excise)

 
Mill Scale

India: Jindal Steel invites Bid for Sale of 2,000 MT Mill Scale

JSPL (Jindal Steel & Power Ltd) has invited bids for sale of around 2,000 MT Mill Scale from its Patratu plant located in Jharkhand. At the same time, Monnet Ispat & Energy  has also invited bids for sale of 250 MT Mill Scale laying at Raipur (Chhattisgarh) plant.

With Iron ore mining being hampered in Odisha & Jharkhand, steel manufacturers have shown interest for Mill Scale. Its prices in Chinese market are assessed at USD 80-82/MT CFR China for bulk shipment having Fe content 70/68%.However, in domestic market, prices are at around INR 3,600-3,700/MT (ex- Raipur), INR 3,100-3,200/MT (ex- Kandla) and INR 3,200/MT (ex- Hyderabad).

Mill Scale is a by- product generated during re-rolling process and is used by Pellet and Sinter manufacturers. Unlike Iron ore, Mill Scale does not attract any export duty or differential freight.

SteelMint Event
SteelMint Event ‘Indian Ferrous Scrap & Mill Scale Trade Meet’ to be held on Saturday 22 Nov, 2014 in Chennai (Tamil Nadu) is one of India’s largest networks for Scrap & Mill Scale traders & buyers. The prime objective of this summit is to create a trade platform for these global buyers & suppliers for trade.

                                                   Saturday, 22nd November 2014

 For more details please contact Mr. Amit Hablani at +91 70241 49333

 

 

India: OMC to auction Chrome Ore & Concentrate

Odisha Mining Corporation (OMC) is conducting auction for sale of Friable Chrome ore & Chrome Concentrate in Odisha.

MSTC on behalf of OMC is conducting auction for Friable Chrome ore (CO) and Chrome Concentrate (CC) produced at South Kaliapani Chromite mines and COB plant of OMC on 09 Oct, 2014.

OMC, a state government undertaking company, is offering Chrome ore & Chrome Concentrate for sale. Material is available in different lots of CO/CC from its mines.

Bid value quoted shall be the basic price (INR/MT) for minerals (CO/CC), inclusive of royalty and exclusive of cess and other statutory duties & levies.

Total Quantity

  • Friable Chrome ore: 51,000 MT (approx)
  • Cr2O3: 42-54%
  • Chrome Concentrate: 2,800 MT (approx)
  • Cr2O3: 38-52%

Auction Date: 09 Oct, 2014

Note: OMC had conducted its last auction for total 60,100 MT Chrome ore and Chrome Concentrate on 20 Aug, 2014.

 
Coal Price

Imported 5500 NAR Coal Constant at USD 74-76/MT CIF India

  • South African (RB-2) steam coal prices are hovering in the range of  USD 74-76/MT CIF India
  • Australian 5600 NAR steam coal is offered at USD 75/MT CIF India, having 24-28% VM and around 54% FC
  •  Indonesian 4200 GAR steam coal is in the range of USD 47-48/MT CIF India, having 40-42% VM, 37% FC and around 6-7% Ash content
  • Indian imports of steam coal stood at around 12.8 MnT till  26 Sep, 2014

Imported 5500 NAR steam coal, having volatile matter 22-24%, is assessed in the range of USD 74-76/MT CIF India based on quantity and delivery period.

Current vessel waiting time at ports is around 20 days for Dhamra port, around 1-day at krishnapatnam and maximum 1-2 days at Gangavaram port. Importers prefer to import at Gangavaram & Krishnapatnam port owing to minimum waiting time and large vessel handling capacity.

A trader based in western India is offering South African 5500 NAR steam coal at USD 74-75/MT CIF Krishanapatnam port and USD 75-76/MT CIF Gangavaram/Vizag port; delivery in mid-November. Current waiting time is maximum 1-day at Krishnapatnam port.

Another Indian trader based in eastern region is offering Australian 5600 NAR steam coal at USD 75/MT CIF. However, buying interest is seen at USD 74/MT levels.

Indian Power & Steel Companies wait for Government’s Direction on Coal Blocks De-allocation

After the SC’s verdict on cancellation of 214 coal blocks in the hearing 0n 24 Sep, 2014 Indian buyers are still seeking clear directions from central government on how and when will these blocks be auctioned.

Imported offers uptick for Indonesian coal but Indian buyers have still not accepted this price hike.

Sponge & Cement manufacturers’ coal imports have been registered a rapid growth from last 3-4 months on the background of coal block de allocation and reduction of quantity in e-auction.

Demand strengthens for South African/Australian Steam Coal

Auction platform prices are picking up post reduction of quantity in e-auction. Meanwhile, imported price is around 25% cheaper than domestic auction prices. At present state of affairs, Sponge iron manufacturers are compelled to import in order to cater the need of running plants, urged a Sponge iron manufacturer.

Currently, Chhattisgarh based 6-member promoter group – Real Group, Gopal Industries, Mahindra, GR Group, Bhagwati & Vaswani Industries are importing around 1 lakh MT of coal from Australia to feed their 11 Steel & Sponge iron plants. However, vessel is yet to arrive, said one of the members at Chhattisgarh Sponge Iron Association.

As per SteelMint assessment, India has imported around 15.9 MnT of coal till 26 Sep, 2014, out of total around 12.8 MnT comprises Thermal coal.

Indonesian Coal

Currently, Indonesian 4200 GAR is being offered at USD 47-48/MT CFR India. Meanwhile, 3800 GAR is offered at around USD 41-42/MT CFR India.

 

 

India: OMC’s Iron Ore Bids up by INR 300-2,000/MT

OMC’s Iron ore tender for sale of 61,500 MT material from its various mines has fetched high bids from the bidders.

Odisha Mining Corporation, a state government undertaking company, had floated a tender on 12 Sep, 2014 for sale of various grades of Iron ore produced at its different mines. For this tender, the bids have risen by INR 300-2,000/MT against Q2 FY15 prices.

Region

Iron Ore Type

Quantity (MT)

H-1 Bids

Bidders

Q2 (Jun-Sep) Prices

Change

Barbil

10–40 mm, (Fe: +62%)

5,000

5,051

Anjani Steels (Chhattisgarh)

4,595

+460

Gandhamardan

10–40 mm, (Fe: +62%)

10,000

4,701

Anjani Steels (Chhattisgarh)

4,059

+650

Gandhamardan

10–40 mm, (Fe: +62%)

3,000

4,651

Anjani Steels (Chhattisgarh)

3,303

+1,350

Gandhamardan

10–180 mm (Fe: +65%)

2,000

3,811

Priti Pragyan Minerals (Odisha)

3,505

+305

Gandhamardan

5–18 mm (Fe: +64%)

1,500

5,551

Anjani Steels (Chhattisgarh)

 –

Koira

10–40 mm, (Fe: +62%)

40,000

6,209

Prakash Industries (Chhattisgarh)

4,250

+2,000

Total

 

61,500

 

 

 

 

Prices in INR/MT on ex-mines basis including royalty
H-1  bids for Q3 FY15 (Oct’14-Dec’14)
Source: SteelMint Research

The last OMC’s tender of Daitari mines was not encouraging because it was called off after H1 bidder (Electrosteel Steels), which was discovered as a lease holder that’s against the criteria of OMC’s tender.

South African Lump Imports likely to rise further

OMC (Odisha Mining Corporation) is one of the largest merchant miners in the state, which produces roughly 2-3 MnT on an annual basis.

Rising bids for Iron ore lumps have given more room for imports as some of big plants like Bhushan, Visa Steels and Adhunik Metaliks have signed MoU with OMC for supply of raw material.

Market experts say, imports may rise, especially for South African lump of size 6-40 mm and grade 64+%.

Reference prices for S. African Kumba lumps are at USD 88/MT CFR Indian West Coast for 70,000-80,000 MT vessel, loading in October/November.

 
Silico Manganese

India: Silico Manganese Prices up by INR 500/MT

Silico manganese prices have increased marginally this week in most places, although market sentiment remains bearish as there’s no pickup in demand.

Silico manganese market uptick this week in Raipur as there is power shortage, which led to decrease in production and increased offers in spite of low demand. Current price for 60-14 grade is at around INR 57,500/MT (ex-Raipur), INR 58,500/MT (ex-Vizag) and INR 58,000/MT (ex-Durgapur). According to sources, Prakash Industries is currently offering Silico manganese at INR 56,000/MT (ex-Champa). Market sources believe market will witness no price movement till end of the next week as there is limited trade expected during Durga Puja festival.

Export Market

In the export market, mainstream prices are firm, and with more inquiries expected after October, suppliers & traders are not under any pressure to offer aggressive quotations. Silico Manganese 60-14 is being offered at around USD 920/MT FoB East Coast of India and 65-16 grade is at USD 1,020/MT FoB East Coast of India.

“The international buyers seem to be waiting on the sidelines to ascertain a better idea of market direction before they decide whether they want to purchase or not,” stated a producer from Kolkata.

As outlook, market participants assume that price level of Silico manganese will remain unchanged till mid-October and demand will also remain at low level.

 Exchange Rate: USD 1= INR 61.48