Monthly Archives: March 2016

Malabar Cements Issues Tender for Purchase of 4,000 MT Bauxite

Malabar Cements Ltd, a fully owned Govt. of Kerala undertaking, invites a two bid tender for purchase of 4,000 MT bauxite on FOR MCL Walayar Basis at Kerala. The suppler must be Indian bauxite mine owner or they have duly authorize firm or domestic traders.

Unloading of the material at MCL stock yard or stevedoring of material at port undertaken by the company as the case may be.

Bidders shall submit the following details and the copy of documents

1.Corporate Identity Number (CIN) or a certificate of registration by a competent governmental authority.
2.In case of partnership firm, copy of partnership agreement/deed duly attested by notary
3.Address of registered office
4.Tax registration number
5.Source and arrangement for continuous supply

Specification

SiO2: 12% max, Al2O3: 40% min, Fe2O3: 30% max, Moisture: 8% max, and Size: 6” max

Tender schedule

Bid submission due date: 17:00 hrs on 1 Apr’16
Bid opening date: 10:00 hrs on 5 Apr’16

 

Indian Flat Steel Imports Rise by 35% in FY16

While HRC and CRC imports increased considerably in FY16 against previous year, imports of electrical sheets plunged during FY16.

This article covers India’s flat products imports under HS codes 7208, 7209 and 7225.

HS Codes Description

7208: Flat rolled hot products iron or non-alloy steel, of a width of 600 mm or more, hot- rolled, not clad, plated or coated

7209: Flat rolled products of width>= 600mm,cold-rolled (cold-reduced),not clad,plated/coated

7225: Flat rolled products of other alloy steel (silicon electrical sheets) of width 600 mm or more

HRC

As per the provisional Customs data, import of products under HS code 7208 increased by 76% in FY 16 against previous year and stood at 3.87 MnT. The reason being cheap import influx from China, Korea, Japan, and Russia.

Although MIP have been announced by the government in Feb’16, its effect will be seen only in the imports of April and thereafter as the usual delivery time taken for import shipment to reach India is usually two months. Thus, Feb’16 and Mar’16 import numbers reflect  the bookings made in the months of Dec’15 and Jan’16.

CRC

Similarly CRC import under HS code 7209 also increased by 26% in FY 16 against previous year  and stood at 1.55 MnT in FY16.

7225

However imports of electrical sheets under HS code 7225 have decreased by 5.42% in FY 16 against FY15 and stood at 1.92 MnT in FY16.

 
Ferro Silicon

Ferro Silicon Prices Move Higher on Better Demand

Ferro silicon prices regained grounds on improved demand and lack of material in the market.

SteelMint assessed weekly ferro silicon price at INR 62,000/MT (Ex-Bhutan). Ferro Silicon market found some hopeful expectations for future price increases as inquiries picked up

The ferro silicon market is supported with demand from steel mills, and buyers are generally willing to pay more. This provides leeway for a stronger market this week, but there is scarcity of material,” stated a producer from Bhutan.

Domestic Ferro Silicon Prices Up

Ferro silicon prices in the domestic market have increased amid rising demand and tight supply

SteelMint assessed weekly ferro silicon price at INR 60,000/MT (Ex-Guwahati). Prices edged higher this week on stronger margins for steel producers, with demand particularly firm.

Market watchers are assuming that market condition to change soon. SteelMint assessed that in the coming 1-2 weeks, ferro silicon market should run steadily.

Exchange Rate : USD 1 = INR 66

 
Iron_ore_export

Goan Govt Proposes Some More Measures to Boost Iron Ore Export

In order to boost iron ore export from state, Govt. of Goa has made some more rules to amend the Goa (Prevention of Illegal Mining, Storage and Transportation of Minerals) Rules, 2013.

These rules may be called the Goa (Prevention of Illegal Mining, Storage and Transportation of Minerals) (Third Amendment) Rules, 2016. The rules shall come into force from the date of their publication in the Official Gazette.

The amendments are as follows:

  1. Reduction in processing fee of registration of raising contractors-The processing fee which is deposited with every application for registration of raising contractor (who raises mineral for the leaseholder) has been reduced from INR 1 lakh to INR 10,000
  2. Processing fee of registration of transport contracts also undergo decline-The processing fee which is deposited with every application for registration of transport contractor (who is engaged in mineral transport for the leaseholder) has been reduced from INR 50,000 to INR 5,000
  3. Sale, export & transit permit also witness curtailment- Sale & export permit for iron ore which was earlier INR 20/MT has been reduced to INR 1/MT. Transit permit which was earlier INR 10/MT has been reduced to 0.5 paise/MT 

Notification of Goa (Prevention of Illegal Mining, Storage and Transportation of Minerals) (Third Amendment) Rules, 2016


Goa DMG notifies to regulate ore transportation & avoid congestion

In order to regulate ore transportation in the stae, it has been decided to explore the possibility on trial basis of allowing upto twice the number of weighbridges for loacling ore at source than that are available at unloading points or destination point. The trial run shall commence from 01 Apr’16.

Notification of regulation of transportation of ore

 

Wire Manufacturer Association Pleas to Protect MIP on Wire Rod

Hearing on the petition against imposition of MIP on wire rod is likely to be held on 6 Apr’16 in the Delhi High Court.

Recently, Steel Wire Manufacturing Association (SWMA) has filed a petition against imposition of MIP on wire rod as downstream industries facing shortage.

In a statement to SteelMint, an official of SWMA in condition of anonymity said, “Post MIP, there is less availability of wire rod mainly for special grade steel in domestic market. As a result, there is a mismatch between demand and supply of wire rod in the market.”

He also added, we had filed a petition against imposition of MIP on wire rod in the middle of Mar’16 and its first hearing is likely to be held on 6 Apr’16 in the Delhi High Court. It is very important decision as if the court give exemption to wire rod, other industry voice will get strong to remove MIP from flat and long steel in reference to decision.

Indian government has fixed a MIP on wire rod in the range of USD 449-451/MT on 5 Feb’16. Currently, Chinese wire rod offers are assessed at around USD 345/MT, FoB main port.

Indian primary and secondary wire rod manufacturers have sharply increased their offers by INR 4,000-4,500/MT after the MIP implemented on 5 Feb’16.

Post MIP, primary steel players like RINL (Viazg steel) has increased wire rod offers by INR 4,000/MT. In Feb’16, it had increased offers by INR 3,000/MT and in Mar’16 by INR 1,000/MT.

Similarly, the government owned Steel Authority of India Limited (SAIL) has also increased wire rod offers by around INR 3,800/MT. In Feb’16, it had increased prices by INR 2,300/MT and in Mar’16 by INR 1,500/MT.

Secondary wire rod manufacturers mainly in Raipur and Durgapur have surged offers by INR 4,000-4,500/MT in the same period.

Presently, wire rod and HB manufacturers in Raipur are offering the material at INR 28,800/MT and INR 30,600/MT (basic price) respectively.

Similarly in Durgapur, wire rod and HB are offering at INR 26,800/MT and INR 28,600/MT (basic price) respectively.

 
Sponge prices

Indian Sponge Offers Move Up, Except in South

Domestic sponge makers today have increased their offers across major markets by INR 200-500/MT compared to last day closing. However, south market has remained stable. In Indian market, sponge prices have been showing volatility since 1-2 months.

Slight improvement in demand has somewhat supported sponge prices in domestic market. A major rise in prices is seen in Durgapur (+500), followed by Rourkela (+300). In current circumstances, 78-80 FeM C-DRI prices are hovering in the range of INR 11,300-14,100/MT and P-DRI within INR 11,450-13,000/MT.

C-DRI and P-DRI prices as on 31 Mar’16

Particular C-DRI D-o-D P-DRI D-o-D Premium 1 week earlier premium
Ex-Durgapur 12,500 + 500 11,450 + 450 1,050 1,000
Ex-Rourkela 11,300 + 300 NA NA NA NA
Ex-Raipur 13,450 + 250 12,200 + 200 1,250 1,350
Ex-Bellary 12,450   0 11,900   0 550 400
Ex-Hyderabad 14,000   0 13,000   0 1,000 500

Prices in INR/MT
Source: SteelMint Research

Current trade-wise

1. Raipur based Vandana Global is heard to offer DR CLO (0-20 mm) at INR 14,200/MT (ex work, payment advance).
2. Yesterday, 5,000 MT P-DRI was sold at INR 12,000/MT. Today, offers are assessed at INR 12,200/MT but demand is average. 
3. Karnataka based BMM Ispat is offering 80 FeM P-DRI at INR 12,300/MT ex-plant.
4. Karnataka based Prakash Sponge has reduced its offers by INR 100/MT; offering 78 FeM C-DRI lump at INR 12,300/MT and 75 FeM fines at INR 11,100/MT ex-plant.
5. Odisha based OCL Iron has offered 80 FeM C-DRI at INR 12,000/MT (CST) and INR 11,700-11,800/MT (VAT) ex-plant.
6. Odisha based Pooja Sponge (200 TPD) has offered 80 FeM C-DRI at INR 11,500/MT (VAT) and INR 11,800/MT (CST) ex-plant (Odisha).

 

Japanese Scrap Offers Rise to Indian Market Despite No Buying

  1. Korean buyers actively buying Japanese scrap
  2. Appreciating Japanese Yen

Japanese ferrous scrap offers to Indian market continue to rise this week despite no buying interest. Reason for hike in offers is better realization in Korean market, which remains preferred market for Japanese suppliers.

Current offers for Japanese busheling shredded are in the range of USD 260-270/MT CFR Nhava Sheva, which was USD 250-260/MT CFR Nhava Sheva last week. However, buyers resist to take positions at these levels. Indian buyers mentioned that offers are too high and not feasible at current steel prices. Shredded scrap offers from US/Europe are assessed in the range of USD 235-240/MT, CFR Nhava Sheva but no major deals were heard to be concluded.

India imported about 56,000 MT ferrous scrap from Japan in 2015.

Korean buyers become active

Rise in global billet and scrap prices have made Korean steel makers to buy Japanese scrap actively. Current offers for busheling shredded to Korea are assessed at around USD 210-212/MT FoB Japan, which is equivalent to USD 230-232/MT, CFR Korea (in break bulk).

Appreciating Yen against Dollar

Another reason why Japanese scrap offers have gone up is appreciating Yen, which is fetching lower realization to Japanese exporters. Japanese yen has appreciated from 124/USD to 112/USD in last 1 month.

India imported around 5.6 MnT in 2015; out of which 15% each was contributed by USA and UAE followed by UK (14.5%).

Country wise scrap imports to India in 2015

Countries Total Qty Percentage
United States 8,65,800 15.00%
United Arab Emirates 8,65,600 15.00%
United Kingdom 8,15,000 14.00%
South Africa 7,34,700 13.00%
Australia 3,41,750 6.00%
Singapore 3,02,500 5.00%
Japan 56,000 1.00%
Others 17,61,150 31.00%
Total 57,41,500 100.00%

Source: SteelMint Research

 
Pellet_Prices

Shri Mahavir Ferro Alloys Commences Pellet Production in Odisha

Rourkela (Odisha) based sponge iron manufacturer-Shri Mahavir Ferro Alloys has recently commenced pellet production at their 0.6 MnT pa plant.

Shri Mahavir Ferro Alloys-Rourkela (Odisha) based sponge iron manufacturer which operates a 100*3 TPD sponge iron unit has commenced pellet production. Apart from its sponge iron unit the company also operates a steel melting shop for billet manufacturing and a power supply unit.

The company operates a pellet plant of capacity 0.6 MnT pa in Rourkela. Currently the company is utilizing manufactured pellets both for captive and merchant purpose.

For merchant buyers, current offers for (Fe 63.5+/- 0.5%) pellets are INR 3,300/MT (basic). Landed cost of pellets to Raipur will stand at around INR 4,200-4,300/MT and to Raigarh based units will remain at INR 4,000/MT. Currently in Raipur pellet offers are hovering in the range of INR 4,100-4,200/MT (basic).

In talk with SteelMint, company officials shared that currently we are offering pellets via road only. The railway siding of the company is under pipeline which is expected to start by Jul’16. After which the company would start giving offers on loaded to wagons basis.

The officials looked optimistic for pellet demand in Apr’16 and are anticipating uptrend in prices backed by buying interest.

Odisha’s pellet capacity reaches 30.1 MnT

Odisha is hub of pellet plants in India and occupies a share of around 35% in India’s pellet capacity. Odisha’s pellet capacity has increased to 30.1 MnT pa which was earlier at 21.6 MnT pa in FY14.

 
HC Ferro Chrome

Ferro Chrome Prices Remain Firm on Steady Demand, Tight Supply

Ferro chrome prices remained steady this week on backdrop of firm offers and tight supply.

Market sources reported that Stainless Steel mills in India are buying regularly. Although, it is not clear if prices could rise on restricted supply in the market, as India’s exports remained stalled, given weak Chinese demand.

SteelMint assessed ferro chrome prices steady at INR 57,000/MT (ex-Odisha). However, few plants are also offering material at INR 58,000/MT.

Market watchers believe that prices of ferro chrome would remain at these levels over the next few weeks as there is a re-emergence of buying activity.

Ferro chrome export prices flat in thin trade, market awaits direction

Spot high-carbon ferro chrome prices moved mostly sideways amid thin trade this week, as market participants sought clearer direction.

Price direction will likely come from Chinese stainless steelmakers setting domestic purchase prices for April, set to be announced soon.

Chinese customers were seeking 58-60% grade material at 55 cents/lb CIF.

SteelMint assessed the spot price of 58-60%-grade high-carbon ferro chrome at 56 cents/lb CIF China, and 57-58%-grade charge chrome at 57-58 cents/lb CIF China, unchanged from a week ago. Japan’s spot import price was assessed at 62-64 cents/lb CIF Japan.

“Buyers sense prices may be bottoming out, so they seem to be seeking some more volumes, but they are not booking anything yet because they want to be sure that prices will be really going up”, a producer said.

 

JSPL Sent Notice to Furnace Operators in Raigarh for Power Cut

Jindal Steel and Power Ltd (JSPL) has today sent notice to Raigarh based furnace operators for curtailment of power supply w.e.f 1 Apr’16. The company is in talk to sell its subsidary plant to JSW in coming days. It is predicted that power supply to 27 MS ingot & ferro units located in Raigarh (Chhattisgarh) will be affected from this. Billet makers in Raigarh reported that approximetly 5,000 workers will get affected post this power cut problem.

There are approx 120-130 induction furnaces in Chhattisgarh with daily 8,000 MT merchant sales volume of MS Ingot/Billet. In Raigarh (Punjipatra), 23-24 inductions are operational at present, which produces approx 45,000-50,000 MT ingot per month. The manufacturers in the state sell most of the material to North India (UP & Punjab).

Jindal Power Ltd, the first domestic private sector player to commission an independent power plant (IPP) in 2007, has a total installed capacity of 3,400 MW set up at coal pitheads. This includes a 1,000 MW plant (250 MWx4) located at Raigarh district of Chhattisgarh, and another plant of 2,400 MW (600 MWx4) capacity, located at Tamnar in the same state.

JSW Energy, the flagship power generating company of Sajjan Jindal, will acquire a 1,000 MW plant located in Raigarh.

Present price of MS ingot in Raigarh is assessed at INR 22,000/MT, billet at INR 22,400/MT, C-DRI at INR 12,100-12,200/MT and P-DRI at INR 11,200/MT (same day payment).