Monthly Archives: September 2016

Factors to Decide Indian Iron Ore Prices for Oct’16

Odisha based major merchant miners raised lump prices twice this month. In Sept’16 lump prices in Odisha increased by INR 400-500/MT and fines prices rose up to INR 100/MT. As per market sources report, fines prices in Odisha may increase in the near term.

However, it is anticipated that NMDC, which had kept prices stable in the month of Sept’16, may raise iron ore prices in the coming month owing to increase in sponge iron prices and Odisha iron ore prices.

Key highlights that will govern iron ore prices for Oct’16 –

1.Chhattisgarh based sponge plants significantly increase iron ore sourcing – C.G. based sponge units have procured 56 rakes in Sept’16* from NMDC (C.G.), against 39 rakes in Aug’16. Their sourcing from Odisha has also increased in this month. C.G. based units procured 210 rakes of iron ore in Sept’16* compared to 195 rakes in Aug’16.

2. KIOCL’s iron ore sourcing from NMDC (C.G.) doubled in Sept’16 – Export oriented pellet maker – KIOCL continued with its iron ore purchases from NMDC (C.G.) mines and sourced 20 rakes in Sept’16 * compared to 11 rakes in Aug’16.

3. JSW Steel’s iron ore sourcing falls in Sept’16 – The steel maker procured 51 rakes of iron ore from NMDC (C.G.) in Aug’16 which fell to 32 rakes in Sept’16*. Steel maker’s sourcing from Odisha has also reduced considerably in this month to 50 rakes* compared to 146 rakes in Aug’16

4. RINL’s procurement from NMDC (C.G.) up in Sept’16 – Vizag Steel procured 100 rakes from NMDC (C.G.) in Sept’16* which was 89 in Aug’16

5. Positive sentiments in Indian sponge iron market – Throughout the month of Sept’16, there was sharp increase in sponge iron prices. In Raipur, C-DRI (80 FeM) prices moved up by around INR 2,000/MT M-o-M and is presently seen at INR 15,200/MT (ex-works).

6. Iron ore prices in China fall by USD 4/MT M-o-M – Monthly average iron ore fines (Fe 62%) index which stood at USD 60.5/MT, CFR China in Aug’16 dropped and was recorded at USD 57/MT, CFR China in Sept’16. Limited trade activities amid holidays kept fines prices stable at USD 55-56/MT, CFR China for a long duration in this month.

7. Iron Pellet export continues against domestic availability – Indian pellet exports geared up further in this month.  Domestic pellet prices increased up to INR 500/MT M-o-M amid increase in fines and P-DRI prices. As per market sources, some major pellet plants may start offering in domestic market after increase in prices.

Note – * indicates data updated till 28 Sept’16

 

KJS Ahluwalia Mines Further Increases Lump Prices by INR 250/MT

Odisha based KJS Ahluwalia mines has further raised lump prices by INR 250/MT w.e.f 01 Oct’16. This for the third time in succession that the miner has raised prices.

Since beginning of Sept’16,  KJS Ahluwalia has raised lump prices by around INR 600/MT and fines prices by INR 100/MT. It is expected that the miner may revise fines prices in the next week.

KJS Ahluwalia (Nuagaon mines) has EC limit of 5.62 MnT pa and Kaypee Enterprises has EC limit of 5.5 MnT pa.

Reasons behind sharp increase in Odisha iron ore prices – Iron ore prices in Odisha are gaining momentum owing to following reasons.

1. Sharp hike in sponge iron prices – C-DRI prices in Rourkela have moved up by INR 1,500/MT M-o-M and are currently seen hovering at INR 13,500/MT (ex-works) for 80 FeM

2. Better response in OMC’s recent e-auction – OMC’s e-auction held on 28 Sept’16 received very good response as nearly 90% of the offered quantity was sold and the bids received were higher by upto 33% than base price.

KJS Ahluwalia and Kaypee iron ore prices w.e.f 01 Oct’16

Miner

Size (mm) Grade (Fe %) Prices in INR/MT

  W-o-W

KJS Ahluwalia 5-18 63 2,650 +250
10-30 61 2,550 +250
Fines 63 1,150 =
Kaypee Enterprises 5-18 63 2,550 +200
10-30 61 2,450 +250
Fines 63 1,160 =

Ex-mines prices & inclusive of Royalty, DMF and NMET
Source: SteelMint Research

 

What Happened in Global Flat Steel Market this Week

China:
The downtrend in China’s HRC export prices continued this week as prices have registered a further fall of USD 5-10/MT against last week. Current offers for HRC from China are being heard at USD 370-380/MT,FoB China.

However, with National Day holiday week starting in country from Sunday, 30 Oct’16, no major deals have been heard and market remained muted throughout the week.

China’s CRC  (1.0mm SPCC) offers are being heard at USD 440-445/MT, FoB China.

India  
India’s flat steel offers have remained unchanged this week with no major deals being heard. HRC export offers are assessed at USD 415-420/MT while CRC offers stood at USD 470-480/MT.

CIS countries
CIS origin HRC offers continued to prevail in the range of USD 380-400/MT and CRC offers are being assessed at USD 430-440/MT,Fob Black Sea. Prices in CIS countries have also remained stable this week in both domestic and overseas market.

Japan/Korea
Japan/Korea HRC export offers are hovering in the range of USD 430/MT while CRC offers are at USD 530/MT, FoB basis. Only recently, Japanese steel giant Tokyo Steel  has declared that it will slash its flat products prices by 13% for October month amid soft local demand and weakening overseas prices.

 

Vizag Steel Increases Bloom Prices by INR 2,000/MT (USD 30)

Vizag Steel, a state owned steel maker with an annual capacity of 6.3 MnT, has increased its Steel prices from INR 1,200- 2,500/MT (USD 18-37) w.e.f 30 Sep’16.

Prices have increased due to rising coking coal prices and export orders. Notably, coking coal prices have increased significantly by 35% in last 4 weeks.

Rebars: Upto INR 2,000
Structurals: Upto 1,500
Billet/Bloom: Upto 2,000
Wire Rod: Upto 1,250

A steel re-roller based in Hyderabad confirmed that prices have gone up and bloom (150*150 mm) is being offered at INR 24,100/MT delivered to Hyderabad by Vizag Steel. Freight from Vizag to Hyderabad is about INR 1,500/MT, which make ex-works prices at around INR 22,600/MT.

The company has recently concluded an export tender of 10,000 MT billet (90*90mm) at USD 333/MT, FoB and 20,000 MT bloom (150*150mm) at USD 335/MT, FoB Vizag Port.

Vizag Steel’s 100,000 MT bloom tender received bids at USD 370/MT, FoB Vizag (East Coast India) from two participants, each for consignment of 20,000 MT bloom. The consignment is likely to be shipped to Bangladesh. The company will receive ex-plant realization of around INR 23,000/MT.

Last offers for 165×165 mm bloom from JSW were heard at INR 26,500/MT ex-yard in Hyderabad. While, other mid-sized and small billet manufacturers were offering small sized (100*100, 120*120 mm) billet at INR 27,100/MT (advance payment).

 

Bangladesh Billet Imports at 860,000 MT in 2016 (Till Sep)

Bangladesh has always been a key destination for seaborne billets due to large number of rolling mills. Country imports around 1.5-2 MnT of billet every year against an annual requirement of about 4-5 MnT.

Bangladesh imported around 860,000 MT (0.86 MnT) billets in first 9 months of 2016 (Jan-Sep), according to data maintained by Steelmint. Out of which 88% was through sea route and 12% was via road from India.

It is expected that billet imports will come down in coming years owing to recent hike in billet import duty by Bangladesh government with an intention to increase steelmaking in the country.

Bangladesh is one of Asia’s most emerging steel markets and has a growing need for raw materials and Semi Finished materials. Steel Capacity in Bangladesh during FY’2016 was 3 MnT, registered a growth of 200% against 1 MnT during FY’15. It is believed that the capacity will increase to 4.5-5 MnT in 2018 owing to government’s various initiatives to push steel production in the country.

Steel Billet Import by Bangladesh through Sea during Jan-Sep’16

PORT VESSEL NAME CARGO  QUANTITY  Period COUNTRY LAST PORT
CHITTAGONG CH CLARE STEEL BILLET      17,000 Jan-16 INDIA HALDIA
CHITTAGONG SPRING HAWK STEEL BILLET      33,150 Jan-16 N/A N/A
CHITTAGONG AMBER ALENA STEEL BILLET      16,000 Jan-16 N/A N/A
CHITTAGONG HAI YU STEEL BILLET      13,350 Feb-16 N/A N/A
CHITTAGONG EFFICIENCY OL STEEL BILLET      17,000 Feb-16 INDIA HALDIA
CHITTAGONG MAA SALEHA BEGUM STEEL BILLET      49,500 Feb-16 N/A N/A
CHITTAGONG ABDULLAH STEEL BILLET      44,000 Feb-16 CHINA N/A
CHITTAGONG ZAMBESI STEEL BILLET      31,400 Feb-16 N/A N/A
CHITTAGONG JAHAN SISTERS STEEL BILLET      45,230 Mar-16 CHINA TIANJIN
CHITTAGONG EQUATOR HARMONY STEEL BILLET      26,200 Mar-16 INDIA VIZAG
CHITTAGONG SIDERAKI STEEL BILLET      17,000 Mar-16 INDIA HALDIA
CHITTAGONG COS FAIR STEEL BILLET      24,800 Mar-16 N/A N/A
CHITTAGONG LORD BYRON STEEL BILLET      22,000 Mar-16 INDIA VIZAG
CHITTAGONG SARWAR JAHAN STEEL BILLET      44,000 Mar-16 N/A N/A
CHITTAGONG TRIGLAV STEEL BILLET      28,600 May-16 N/A N/A
CHITTAGONG TAN BINH 38 STEEL BILLET      15,000 Jun-16 N/A N/A
CHITTAGONG YASA EMIRHAN STEEL BILLET      23,000 Jun-16 N/A N/A
CHITTAGONG TAN BINH 45 STEEL BILLET      17,500 Jun-16 INDIA CHENNAI
CHITTAGONG BLUE FIN STEEL BILLET      30,000 Jun-16 N/A N/A
CHITTAGONG SANGITA STEEL BILLET      20,000 Jun-16 INDIA MUMBAI
CHITTAGONG CHRINA STEEL BILLET      28,500 Jun-16 N/A N/A
CHITTAGONG AURORA ISLAND STEEL BILLET      10,000 Jun-16 INDIA HALDIA
CHITTAGONG MAA SALEHA BEGUM STEEL BILLET      45,000 Jun-16 N/A N/A
CHITTAGONG GLOBAL BRAVE STEEL BILLET      35,000 Jul-16 N/A N/A
CHITTAGONG YANGTZE NOVA STEEL BILLET      34,000 Jul-16 N/A N/A
CHITTAGONG GLADIATOR STEEL BILLET      20,600 Jul-16 N/A N/A
CHITTAGONG POAVOSA WISDOM STEEL BILLET      26,250 Jul-16 INDIA GANGAVERAM
CHITTAGONG JUPITER CHARM STEEL BILLET      27,000 Sep-16 INDIA MUMBAI
Total        761,080      

Source: SteelMint

Bangladesh import Billet from India through road also, the nation imported around 0.10 MnT Billet through road from India during Jan-Sep’16.

Bangladesh Billet Import through Road during Jan-Sep’16

Period

Total

Feb-16

3346.59

Mar-16

9398.65

Apr-16

20182.67

May-16

49607.95

Jun-16

8110.19

Jul-16

8337.27

Total

98983.32

Source: SteelMint

capture

 

South African Coal Prices at 28-Month High, Index Hits Fresh Record for Oct’16

South African Thermal coal Index (API4) hit fresh high today. While Oct’16 index reaches at the level of USD 75/MT, FoB Richards Bay.

After remarkable growth in South African coal prices which was recorded at 21 months highest last week , now prices are noted at fresh high and touched 28 month highest (since Jun’14) this week. South African coal index (Oct’16 shipments) rose by about 10-12% to USD 75/MT, FOB compared to last month.

South African 5500 NAR (RB2) coal prices, mostly traded in India rose again by USD 3-4/MT, FoB for Oct’16 deals, after witnessed sharp growth in Sep’16. Currently, it is hovering at the range of about USD 58-59/MT, FoB.

In India, South African 5500 NAR coal offers heard at USD 67/MT, CFR at West Coast ports. While, low CV South African RB3 (4800 NAR) is available at USD 54-55/MT, CFR India.

Mentioned by a coal importer West Coast India, “In thermal coal index market, South African and Australian coal prices moves counterpart, since couple of months there have been a huge gap witnessed between two as Australian prices moved up faster than South African coal. In addition, Rising Chinese demand for Australian thermal coal also deriving South African coal index up.”

Stock and Sale Offers at Ports
Owing to increased global offers, Indian buyers are keen to purchase stock material from different ports. India’s stock & sale coal prices have also turned up sharply on the wake of high imported offers. Besides, Indian East Coast based traders are eyeing on profit margins and holding South African coal stock at ports as they are looking to sell material at higher prices.

Stock and sell material offers for RB2 is been offered by an Indian trader at INR 5,500/MT at Paradip Port. Whereas, at Vizag and Gangavaram ports, same grade material is available at INR 5,200-5,300/MT loaded on truck basis (all duties and clearance included, VAT & CST will be added further). Very less quantity of 4800 NAR is been offered at INR 4,800/MT at Paradip Port.

Indian Imports
As per SteelMint data analysis, India have been importing at an average about 3.7 MnT coal from South Africa per month since Feb’16. In Sep’16, monthly imports have increased by 9% to 2.5 MnT compared to Aug’16. It is also noted that Indian imports is falling down on the back of higher global offers.

south-african-coal

 

Indian Structure Market Reports Highest Price Rise in Week 40

Secondary structure market this week reported highest price rise of INR 2,000-2,100/MT.

Strong prices sentiments coupled with shortage of raw material has supported structure market as prices this week jumped up by INR 2,000-2,100/MT; hitting highest level.

Major price hike of INR 2,100/MT is witnessed in east India, followed by south and west regions.

In the meantime, billet prices have increased by INR 200-750/MT and hovering in the range of INR 21,700-24,900/MT.

Current 100X100 mm angle offers are assessed at INR 28,500/MT (+2,100) in Durgapur, INR 27,800/MT (+1,700) in Ahmedabad, INR 27,000/MT (+983) in Raipur and INR 29,000/MT (+2,000) in Hyderabad.

Meanwhille, 200X75 mm channel prices are evaluated at INR 27,500/MT (+1,125) in Durgapur, INR 29,700/MT (+800) in Ghaziabad, INR 28,000/MT (+1,700) in Ahmedabad, INR 28,300/MT (+733) in Mumbai and INR 26,500/MT (+983) in Raipur.

Heavy 200X100 mm beam offers are assessed at INR 27,500/MT (+1,125) in Durgapur, INR 29,200/MT (+800) in Ghaziabad, INR 28,800/MT (+733) in Mumbai and INR 27,800/MT (+1,700) in Ahmedabad.

 To view all size structure steel price, click here.

stru

 

 

GP/GC Market Overview in Week 40

India:
With surge in domestic flat products prices by INR 1,000-1,200/MT, GP/GC prices have also moved up.

Current offers for HDG (Hot dip galvanized) coil (0.8mm and above, IS 277) (are assessed at INR 42,500-43,000 (ex-works basis, excluding excise of 12.5%) and at INR 47,500/MT (ex-Delhi, including excise of 12.5%). HDG’s export offers from India remained the same at USD 730-740/MT, FoB India basis.

China:

This week, China’s export offers for HDG has remained the same against last week amid thin trading.

Current offers for 1.00mm HDG coils are assessed at USD 515-520/MT, Fob China basis. Prices for HDG coil in China’s domestic market are heard at RMB 3,950-4,150/MT (USD 590-620/MT), ex works basis.

UAE:

Demand for flat steel products in the country have remained subdued this week, thus keeping import prices unchanged against last week. Hot dipped galvanized coil (HDG) of 0.50mm thickness was offered from China at USD 540-550 per tonne CFR basis.

Japan:

Following the trend of other countries, galvanized sheet offers from Japan has also remained unchanged at USD 600/MT, FoB basis.

HDG Export Prices as on 30 Sep’16

Particulars

Prices in USD/MT

FoB China 515-520
FoB Japan/Korea 600-605
FoB India 730-740
FoB Latin America 760-770
CFR Iran 495-500
CFR UAE 540-550
CFR Europe 585-590
CFR Huston, US 660-700
 

Anthracite Coal Import Offers Drift Up by USD 2/MT on Rising International Demand

Rising demand for Anthracite Coal is being reflected on the prices. Prices of the coal variant have continued to exhibit a rising trend, driven by strengthening demand in the key international regions.

The latest import offers of the coal variant have been reported to go up by USD 2/MT to USD 123/MT CFR India.anthracitecoaloffersfy17

 

Source: Market Participants 

As learnt from a source, stocking of the coal has begun actively in the Ukraine region, where, inventories of power plants have risen steadily. The stockpiling of the coal variant is being done in view of the excessive demand for power during the peak winter season.

Moreover, demand has been rising in other regions as well. Another bit of information received from a source, South Korea based Midland Power Company Limited recently booked 80,000 MT of Anthracite Coal from South Africa, for delivery in Nov’16. The export price was quoted at USD $72/MT FoB.

IMPORTS

In contrast, demand for the coal has continued to remain lackluster in India as buyers in the country preferred alternate fuels to run their production machineries. The rise in the price of the coal will thus inflict no influence on the Indian market.

Clearly, Anthracite Coal imports into India have been low. During the 1-29 Sep’16 period, only 52,800 MT of the coal has been imported into the country, data compiled by CoalMint Research shows.

 

 
Ferro Manganese

India: Ferro Manganese Prices Unchanged in Lacklustre Market

Prices of Ferro Manganese in the domestic market remained firm, despite less-than-buoyant demand from buyers.

SteelMint assessed the current price for grade 70% min for both Raipur and Durgapur is INR 55,000/MT.

Domestic demand for ferro manganese remains low with prices remaining unchanged this week. Indian producers reported buyers were reluctant to buy as prices were quiet high. “Domestic demand is quite weak in the market now, and there has been hardly any purchases made last week” stated a Raipur based producer.

Ferro manganese export market is timid with no keen buying interest from overseas players. Currently, there are no offers for Indian-origin ferro manganese in the export market, with very few players producing Ferro Manganese as high grade manganese ore is scarce and very costly too.

Sources said a lack of deals and spot demand stymied any price movement. “There are no enquiries, there is no improvement in volume of sales. This is because prices are too high for the buyers as Indian Ferro Manganese is not price competitive in the global market.” stated a producer from Kolkata.

Prices are likely to remain at this level for this week as most producers are waiting for the next quarter MOIL manganese ores prices, and market participants feel MOIL is likely to increase prices looking at the soaring imported ore prices.