Monthly Archives: July 2016

SAIL Seeks Wet Leasing Agent for 48,000 MT Structurals in Durgapur

Steel Authority of India Limited (SAIL) is the India’s largest steelmaker and produces a variety of steel and iron products including Pig iron, flat and long products and special steels at its plants spread over India.

The company has invited a tender for appointment of a wet leasing agent from bonafide, resourceful firm/company for conversion of semi finished into 48,000 MT structurals per year in and around Durgapur, West Bengal. The tender will be kept valid for 90 days from the date of technical bid opening.

The successful bidder will be appointed as the Wet Leasing Agent (WLA) initially for a period of 2 years, extendable by up to 1 years solely at the discretion of SAIL subject to satisfactory performance.

The finished product after conversion should be 10-12 meter straight structural (angle, joist, and channel). This conversion should be from billet 90-125 mm and/or bloom 150-350 mm.

Company required the following size structurals:

Material Medium structurals: 25% Heavy structurals: 70 %
Angle 100 to 130mm 130 to 200 mm
Channel 125 to 200 mm 200 to 300 mm
Joist 125 to 200 mm including
H-beam 150×150 mm
200 to 400 mm
Rail 15 kg: 5%


Eligibility criteria

1. Bidder must have a valid Bureau of Indian Standards (BIS) license at th etime of application for IS 2062:2011 (E250 A/BR/B0 grades)
2. Relevant ISO-9000 certification for manufacturing is mandatory.

Tender schedule

Due date for bid submission is 20 Aug’16 up to 15:00 hrs IST

 

Indian Structure Market Reports Sharp Price Correction

Indian secondary structure manufacturers are still under extreme pressure as prices have dipped by 300-700/MT across major market. Major fall of INR 600-700/MT W-o-W is reported in east Indian market, followed by southern market.

SteelMint also learned traders are also providing discount of INR 700-1,000/MT in commercial market for advance payment.

Meanwhile, billet offers in week 31 dipped by INR 100-600/MT and currently accessible in the range of INR 18,750-22,700/MT.

100×100 mm angle offers are reported in Durgapur at INR 24,300/MT (-600), Ahmedabad at INR 25,300/MT (-200), Raipur at INR 24,000/MT (+150) and Hyderabad at INR 25,200/MT (-300).

While, 200×75 mm channel and 200×100 mm beam in Ghaziabad are available at INR 27,500/MT and INR 26,800/MT, registered a fall of INR 500/MT W-o-W in offers.

The same size channel offers in Durgapur are assessed at INR 24,100/MT (-700), INR 25,500/MT (-200) in Ahmedabad, INR 26,000/MT (-350) in Mumbai and INR 23,500/MT (-300) in Raipur.

To view all size structure steel price, click here.

 

Aruna Sharma Appointed as New Indian Steel Secretary

Recently, Indian government has reshuffled the position and appointed Aruna Sharma, a senior IAS officer, as a new Steel Secretary w.e.f 28 Jul’16. Earlier, Aruna Sundarajan was in charge of this position.

The portfolios of Sharma and Aruna Sundararajan, who is Steel Secretary, have been swapped. Aruna Sharma will now be Steel Secretary and Sundarajan will be Secretary, Ministry of Electronics and Information Technology,an order issued by Department of Personnel and Training said.

A total of 15 new Secretaries have been appointed in various central government ministries. 

 

Korea: KOWEPO Invites Tender for Purchase of 225,000 MT Non-Coking Coal

Korea Western Power Company Limited (KOWEPO) has published a tender for purchase of 225,000 MT non-coking coal for its TAEAN Power Plant, Korea.

First two lots of 75,000 MT each is scheduled for first half of Oct’16 on FOBT or CFR basis and another lot of 75,000 MT is scheduled for second half of Oct’16 on FOBT basis.

The offer will be valid for the period of 2 days from the date of tender closing. KOWEPO can request the bidder to extend validity period of bid, if necessary.

Specification

Total moisture (As received basis): max 28%
Ash (Air dried basis): max 17%
Net calorific value (As received basis): min 4,700 kcal/kg
Ash fusion temperature: min 1,150°C

Due date

The due date for submitting  bid document is 05 Aug’16 up to 11:00 hrs (Korean Standard Time).

KOMIPO also Floated a Tender for Purchase of 80,000 MT Anthracite Coal

KOMIPO also published a tender for purchase of 80,000 MT anthracite coal for Seocheon Power Plant, Korea.

The fixed price is based on FOBT or CFR basis and the delivery of the product is scheduled in Sept’16.

Specification

Total moisture (As received basis): max 15%
Ash (Air dried basis): max 45%
Net calorific value (As received basis): min 4,600 kcal/kg to max 6,000 kcal/kg
Ash fusion temperature: min 1,250°C

Due date

The due date for submitting  bid document is 05 Aug’16 up to 14:00 hrs (Korean Standard Time).

 

Indian Semis Prices Decline in Week 31

During week 31, Indian billet offers down by upto INR 600/MT. Major price corrections of INR 500-600/MT were seen in south region. Whereas, sponge offers fluctuated minutely by INR 100-200/MT owing to average trade activities.

Most of the ingot/billet makers in Rourkela, Durgapur and Raigarh have curtailed their production. Raipur, Mumbai and Jalna based manufactures are also planning to follow suit from 1 Aug’16. As per manufacturers, they have reduced production due to heavy loss at current trade prices.

Pig iron offers by most of the suppliers reduced by around INR 500-1,000/MT; rest all are yet in wait & watch mode. Fresh offers will be declared in coming week.

Week 31 dynamics

1. 78-80 FeM C-DRI offers are assessed at INR 11,950/MT (+50) ex-Durgapur, INR 10,750/MT (-100) ex-Rourkela, INR 12,400/MT (+100) ex-Raipur and INR 11,700/MT (0) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices fluctuated to INR 10,350-12,500/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 19,450/MT (-100) in Durgapur, INR 18,750/MT (-50) in Rourkela, INR 19,750/MT (-200) in Raipur, INR 21,200/MT (-200) in Mumbai, INR 21,60/MT (-600) in Chennai and INR 21,000/MT (-500) in Hyderabad.
4.Indian domestic & global iron ore prices remain firm in the last week. Global iron offers assessed at USD 59/MT, CNF China.
5. Pellet offers stable to INR 2,900-5,150/MT (ex-works) for domestic buyers.
6. Melting scrap offers in both Indian domestic & global market were stable despite sluggish trade activities.

Week 32 outlook

1. Production cut in most of the markets may provide support to Indian ingot/billet prices. While, it may put pressure on sponge prices as demand will decrease significantly.
2. Seasonal less production in iron ore and strong sponge offers may balance Indian iron prices and miners are likely to rollover offers for Aug’16 deliveries.
3. Indian Pig iron manufacturers may come under pressure looking at production cut by ingot/billet makers.

Indian raw material & semis prices as on 30 Jul’16

Products Markets Prices in INR/MT W-o-W
Billet 125*125 MM ex-Mumbai 21,200 – 200
Sponge CDRI 80 FeM ex-Rourkela 10,750 – 100
Sponge PDRI 80 FeM ex-Raipur 11,350 – 100
Pig iron Steel grade ex-Durgapur 16,400 – 250
Scrap HMS (80:20) ex-Mumbai 15,550 – 50
Pellet Fe 63%, 6-20 mm Barbil, loaded to wagons 2,900 -100
Iron ore Fe 62%, 10-30 mm ex-Mines, Joda 1,800* 0

Basic prices, all taxes will be applicable
*Incld Royalty, DMF & NMET

 

South Korea’s Flat Steel Exports Falls in H1 2016

According to customs data of South Korea, country’s flat steel exports under HS code 7208 (hot rolled products), 7209 (cold rolled products), and 7225 (electrical sheets) have registered a fall of 2.59% in first half of 2016 against corresponding period of previous year. The same is recorded at 7.9 MnT in current year and at 8.11 MnT in first half of previous year.

The country’s major flat exports are directed to China followed by Japan and US. Exports to India is recorded at 0.85 MnT. Whereas exports to Bangladesh is at 0.70 MnT in H1 2016.

If month on month comparison is done, country’s flat steel imports have registered a fall of 3.25% in Jun’16 against previous month and is recorded at 1.23 MnT. However, the same has fallen by 13% against Jun’15.

Screenshot from 2016-08-11 17:44:52

South Korea’s Top 5 Flat Steel Exporting Country in H1 2016

Countries

Exports

China 1.21
Japan 1.00
US 0.87
India 0.85
Vietnam 0.60
Others 3.36

Quantity in MnT
Source: South Korea’s Customs

South Korea’s HS Code-wise Exports in H1 2016

Months  

7208

7209

7225

Jan’16 0.72 0.33 0.19
Feb’16 0.72 0.32 0.17
Mar’16 1.00 0.33 0.18
Apr’16 0.99 0.31 0.18
May’16 0.88 0.32 0.18
JUn’16 0.92 0.31 0.18

Quantity in MnT
Source: South Korea’s Customs

 

Chinese Wire Rod Export Offers Surge Again

Chinese wire rod export offers rose again by USD 5/MT in week 31.

China’s wire rod export offers have surged by USD 5/MT in the current week as compared to previous week and stood at USD 343/MT, FoB main port.

Meanwhile, domestic prices for 8 mm wire rod (Q235) in Beijing were assessed at around RMB 2,600/MT (USD 390). Offers remain unchanged in the last one week. While in shanghai, offers have moved up by RMB 80/MT (USD 12) and stood at RMB 2,520/MT (USD 378) for the same grade material.

On the similar lines, CIS export offers stood at USD 352/MT in the same duration; remain unchanged.

Indian market

In Indian wire rod market, large producers like SAIL, RINL, Tata Steel, JSPL and JSW Steel hold the major shares in terms of production than others & mini producers, as per the monthly data reported by JPC- Ministry of Steel.

RINL is the sole producer of long product based in Visakhapatnam and produced about 147,000 MT wire rod during Apr-Jun’16 highest among all large producers, as per JPC data.

A leading wire rod producer is offering material at around INR 31,500/MT FoR (including excise duty, CST and freight); landed cost to Punjab.

Global wire rod prices in week 31 (25-31 Jul’16)

Region

Offers in USD/MT

W-o-W

China export (FoB main port) 343 +5
CIS export (FoB Black Sea) 352 0
South East Asia (CFR) 348 0

Prices in USD/MT, USD 1= RMB 6.6511
Source: SteelMint Research

graph

 

Top 3 Countries’ Ferrous Scrap Imports in H1 2016

As per data released by Customs, Turkey, India and South Korea are the major importing countries of ferrous scrap with total imports of 15.73 MnT during Jan-Jun’16. H1 2016 imports registered a growth of 13.5% Y-o-Y.

With the trade data released by top 3 importers of ferrous scrap, the trade data for H1 is legible and registered a growth of 13.5% against 13.86 MnT in H1 2015.

Scrap 222

Turkey, still the largest importer

With the total imports of 9.16 MnT in H1 2016, Turkey still remained the top importer of ferrous scrap. The nation registered a growth of 8.40% Y-o-Y.
Major exporters to Turkey were USA, Russia, Netherlands, U.K and Belgium, which collectively exported 6.71 MnT during the period.

India registered a growth of 21% Y-o-Y during H1 2016

The nation imported 3.36 MnT, out of which 1.95 MnT were imported by USA, U.K, U.A.E, Australia and Singapore. India reported a rise of 21% against 2.78 MnT imported during H1 2015.

South Korea’s ferrous scrap imports grow by 22% during H1 2016

Japan being the major exporter to South Korea exported 2.01 MnT standalone during H1 2016. Other exporters were Russia (0.56 MnT), USA (0.44 MnT), Puerto Rico (0.03) and Costa Rica (0.02) during the period. With 2.63 MnT being importer during last H1, the nation witnessed a rise of 22%.

 

Anthracite Coal Import Offers Stable, Sluggish Atmosphere Continues

Sluggish atmosphere continued to engulf the Indian Anthracite coal market.

Buyers in the country were reluctant to procure the coal variant due to the ample availability of cheaper alternate fuels, like Petcoke and other forms of coal.

Import offers have remained unchanged from that assessed last week. The latest import offers have been assessed at USD 96/MT CFR India.
anthracitecoaloffers2016
Source: Market Participants

IMPORTS

Imports of the coal variant were in a dull state as a consequence of the sluggish trend. During the 1-25 Jul’16 period, a meager quantity of 100,600 MT was imported into the country, according to SteelMint Research.

The importers during the period were: Rawmet Commodities, Jindal Steel and Power Limited and Essar Steel.

 

Indian Scrap Offers Unchanged on Lower Imports

During a month scrap offers in Indian domestic market are more or less unchanged on declining scrap imports.

Indian scrap imports since Apr’16 are falling consistently due to higher offers and depreciating rupee, which in turn supported Indian scrap prices.

Steel makers in Indian domestic market are much prefer domestic scrap over imported, falling steel prices and volatile global market are forcing them to source domestic raw materials.

Indian scrap imports during Jun’16 was at 4,81,500 MT fell by 12.3% M-o-M. Where as in Jul’16 (till 25th) imports recorded at 2,49,071/MT, decline 48.3% against Jun’16.

Current melting scrap (HMS 80:20) offers in domestic market are INR 15,500/MT ex-Mumbai (west), INR 15,000/MT ex-Chennai (south), INR 15,000-15,300/MT ex-Durgapur (east) and INR 17,000/MT ex-Ludhiana (north region); basic prices.

Meanwhile, global scrap (HMS 1&2) offers are prevailing at USD 205-210/MT (INR 13,700-14,000/MT) and shredded (HMS 1) at USD 220-225/MT (INR 14,700-15,000/MT) CNF west coast of India.Indian scrap Imports(2)

Note: July imports are till 25th.

Scrap & billet offers as on 30 Jul’16

Particulars Market Size/Grade Prices W-o-W M-o-M
Domestic Billet Ex-Jaipur 125×125 mm, IS 2831 21,900 +500 -600
Ex-Jalna 125×125 mm, IS 2831 20,700 -400 -1,100
Ex-Mumbai 100×100 mm, IS 2831 21,200 -200 -800
Ex-Chennai 125×125 mm, IS 2831 21,600 -600 -300
Ex-Hyderabad 125×125 mm, IS 2831 21,000 -500 -1,000
Ex-Ahmedabad 125×125 mm, IS 2831 21,650 -150 -1,050
Domestic Scrap Ex-Alang HMS(80:20) 15,300 0 +100
Ex-Jalna HMS(80:20) 15,850 -300 -450
Ex-Mumbai HMS(80:20) 15,550 -50 -550
Ex-Chennai HMS(80:20) 15,000 +500 +500
Global Scrap CNF India HMS-1, Middle East 210 -2 -7
HMS-1&2, Middle East 205 0 -8
HMS-1&2, S.Africa 210 -3 -3
Shredded, US 220-225 0 -5

Source: SteelMint Research