Monthly Archives: March 2017

Indian Ferro Manganese Prices at 7 Week High

Indian Ferro Manganese prices have gained ground after a persistent lack of demand earlier.

Improvement of steel sector in India helped domestic Ferro Manganese producers to raise their offers. The producers have benefited from the strengthening of the steel market.

A bullish sentiment for Ferro Manganese has been observed in the market as producers are confident of concluding deals. The present offers for Ferro Manganese grade 70% has increased to INR 74,000/MT (Ex-Durgapur) and (Ex-Raipur). However, SteelMint learnt that a major producer in West Bengal has concluded a bulk quantity deal of 500 MT at a price of INR 72,000/MT.

“The demand has improved and buyers are purchasing in bulk to escape the higher prices in coming days” mentioned a producer source.

There are only a few producers in Chattisgarh that are producing Ferro Manganese, namely – Sarda Energy, Hira Power, Girja Smelters and Metallic Alloys, which are producing HC Ferro Manganese grade 70%. According to SteelMint Research, the estimate production is around 5000-5500 MT per month.

On similar lines, Maithan Alloys , Cosmic Ferro , Rashmi Smelters , Lalwani Ferro, Shyam Ferro and Sharp Ferro Alloys are producing an estimate of 8000-9500 MT in West Bengal.

Appreciation of INR against USD has influenced the higher export offer prices, where HC Ferro Manganese grade 70% is being offered at USD 1120/MT and grade 75% at USD 1180/MT FOB India.

As April is predicted to be a strong month, Ferro Manganese consumption is also expected to be firm.

FeMn New

 

Dubai Scrap Export Prices to India Increases as congestion charges imposed

Shipping Companies have imposed congestion charges at scrap import from Dubai to India and Pakistan. Earlier there was no charges of this sort on the imports but now they have imposed charges at USD 150/MT

The imposing of congestion charges has increased the prices to import ferrous scrap from Dubai. The approx. change would be about USD 6/MT CFR India (NhavaSheva). Although, the charges have been imposed on Karachi Port too but that has not affected the prices.

The prices currently are at USD 295/MT levels. No fresh bookings have been done at these prices as because of hike of the prices as well as the uncertainty that was in the market after the govt. of India had issue a notice stating the ICD’s would not be able to import un-shredded scrap.

According to SteelMint Analysis, the demand is expected to stay on the lower side as the buyers are in wait and watch mode after the prices being effected. And it seems that buyers would soon return to the market and resume buying.

CNF india - middle east

 

China Rebar Export Offers Fall Amid Bearish Demand

Chinese rebar export offers are continuously dragged down by weakening Chinese domestic market.

The Rebar export offers for the current week (Week 14) assessed at USD 440-450/MT which USD 13/MT down compared to previous week

Following the down ward movement for the export offers, Chinese spot prices also moved down. Presently, the offer price for HRB 400 grade (25 mm) are evaluated RMB 30-40/MT (USD 4-6) below than the previous week. Today, in Bejing and Shanghai the offers are RMB 3,630/MT (USD 526) and RMB 3,600/MT (USD 522), respectively.

Chinese Spot market remained sluggish and continue slacken, mainly influenced by the decline in Billet prices and bearish future market. Also, Competition with the other countries is the putting pressure on the export offers as they are not able to attract the overseas buyers. As per analysis the prices might rebound post steep fall since couple of weeks.

Inline with the Chinese Export offers other export offers registered a fall up to USD 16/MT. Turkey export offers are around USD 415-420/MT, down by USD 10/MT. CIS export offers fall by USD 16/MT and assessed at USD 420-425/MT. Similarly, UAE import offers down by USD 13/MT and stood at USD 430-440/MT

Global Rebar Prices as on 31 Mar’17 (Week 14) 

Country-wise

Offers in USD/MT

M-o-M

China export FoB main port 440-450 -13
CIS export FoB Black Sea 420-425 -16
Turkey export FoB main port 415-420 -10
UAE import CFR Jebel Ali 430-440 -13

USD 1 = INR 66.8, USD 1 = RMB 6.89
Source: SteelMint Research

 

Positive Sentiment Prevails in Structure this Week

On this week, structure offers have moved up by INR 200-700/MT across major domestic market.

Amid good demand and supply of raw material and semis, positive offer occurs in domestic market of structure.

Gauge parity of light structure in Central India is expected to change that will be implemented by 1st April 2017. Small scale manufacturer may have increased parity on light structure by INR 1,000-1,600/MT.

Billet/ingot based structure have registered price hike in Central India for heavy structure by INR 700/MT; trade discount heard at INR 400-800/MT and for light structure it has increased by INR 300/MT.

Durgapur and Hyderabad have witnessed positive offer whereas prices have surged by INR 500/MT and at the same time, in Ahmedabad it has increased by INR 200/MT W-o-W.

Following, billet 125×125 mm offers have increased up to INR 300/MT, however it has also decreased in Chennai during the last week.

Heavy channel 200×75 mm is being offered in Durgapur at INR 31,750/MT, Ghaziabad at INR 35,300/MT, Ahmedabad at INR 32,000/MT, Mumbai at INR 33,200/MT and in Raipur at INR 30,800/MT.

Offers of heavy beam 200×100 mm are assessed in Durgapur at INR 31,750/MT, Ghaziabad at INR 34,400/MT, Ahmedabad at INR 31,800/MT, Mumbai at INR 33,800/MT in Raipur at INR 30,300/MT.

Light angle 40×40 mm offers are assessed in Durgapur at INR 32,250/MT, Ahemdabad at INR 31,300/MT, Mumbai at INR 32,500/MT, Raipur at INR 30,200/MT and in Hyderabad at INR 32,500/MT.

To view all size structure steel price, click here.

 

Indian Rebar Prices Remain Volatile

On last day of the FY17 Indian rebar prices remained volatile across markets due to subdued trade activities.

In few places like East, North and Southern region, the demand is at its peak mode which in led to increase in prices.

Where as in rest parts of India like Central and Western region prices are stable even though demand is little bit slow compared to previous week.

The manufacturers presently are in wait and watch scenario and are expecting the price hike by the large scale manufacturers.

With the new fiscal year it is expected that Indian Steel Industry to bring some goodies to the Medium and Small manufacturers by increasing price & margins as well.

Notably, India’s Steel exports surged in Q4 of FY17 against the same preceding in FY16. Also, the Goverment’s eye to increase India’s steel consumption is another plus point for the Indian steel Industry for the new fiscal year.

12mm Domestic Rebar Prices as on 31st Mar’17

Region Particular/Delivery Prices D-o-D W-o-W
North India Ex-Delhi/NCR 33,700 0 0
Ex-Mandi Gobindgarh 34,400 – 100 +400
East India Ex-Durgapur 31,600 0 +300
Central India Ex-Indore 34,200 0 +200
Ex-Raigarh 32,200 0 +500
Ex-Raipur 32,200 – 150 +100
West India Ex-Ahmedabad 30,500 – 100 +100
Ex-Goa 33,550 + 250 +450
Ex-Jaipur 32,200 0 +200
Ex-Jalna 31,800 – 200 -200
Ex-Mumbai 32,200 0 +200
South India Ex-Bangalore 35,800 + 100 +600
Ex-Chennai 33,200 + 300 +100
Ex-Hyderabad 32800 – 200 -200

Prices are Ex-Works. ED,VAT/CST Extra
Source : SteelMint Research

 

Indian Government Clarifies the Ban on import of scrap at ICD’s

Government of India, a week ago made an announcement by issuing a notice stating that out of the 26 ports that the import  of un-shredded metallic scrap in India’s 12 ports (Inland Container Depo) are  unfit.

The notice issued on 27th March 2017 that stated an amendment in the para 2.54 of the Handbook of procedures, 2015-2020 mentioned that the ICD’s would not be able to import un-shredded metallic scrap as the ports were missing the installation and operationalization of Radiation portal monitors and container scanner.

Further, the clarification of the notice (dated 06.10.2016 & 27.03.2017) was received on 30.03.2017 stating that any ICD can handle clearance of un-shredded metallic scrap provided the same passes through the designated sea ports.

It was also mentioned in the notice that the import consignments shall be subject to pre-inspection certificate from the country of origin in suppression of the provision mentioned in Public Notice No. 23/2015-20 dated 30th June 2015.

To view the link here

 

MMTC Invites EOI for Supply of Non-Canalized Iron Ore

MMTC, a leading international trading company in India and one of the major global players in minerals trade, has invited an Expression of Interest (EOI) for empanelment of mine owners for supply of non-canalized iron ore to be exported by MMTC on FOR basis from Paradip/Dhamra/Gopalpur port.

Any eligible party who wish to be empanelled for supply of non-canalized (Fe:63.50% max) iron ore fines and calibrated lumpy ore to be exported by MMTC can submit their interest on or before 20 Apr’17.

Eligibility criteria

1. Participant should be iron ore mine owner with requisite valid permits for sale and transfer of iron ore.
2. The participant should not be blacklisted, debarred or banned by any central government or state government agencies/organizations on the date of submission of EOI.
3. Iron ore mine owner shall be responsible for regular supply of the required grade material for export purpose through MMTC having required State Gov Mining permissions/ license/ approval for the same.

 
Chhattisgarh State Electricity Board

India Becomes Net Exporter of Electricity for the First Time

India has turned around from a net importer of electricity to net exporter of electricity.

India has achieved a new milestone in power sector by becoming a net exporter of electricity by cross-border trade, as net electricity exported outshines net electricity imports during FY17, according to Central Electricity Authority report.

Central Electricity Authority (CEA) governing body for monitoring power generation, transmission and usage in the country, stated that India has exported 5798 MU (Million Units) of electricity to Nepal, Myanmar and Bangladesh during Apr’16-Feb’17 which is 213 MU more than the 5585 MU imported from Bhutan during the same period.

Moreover, Exports of electricity to Nepal and Bangladesh has increased by 2.5 and 2.8 times respectively in the last three years.

Cross Border Electricity Transmission among Neighboring Countries:
India has been importing electricity from Bhutan since the beginning of cross-border trade in the last century and exports modest electricity to Nepal in 33 kV and 132 kV radial modes from Bihar and Uttar Pradesh. Bhutan has been supplying 5000-5500 MU electricity to India every year on an average basis.

Electricity Exports to Nepal:
India had been exporting around 190 MW power to Nepal over 12 cross-border interconnections at 11kV, 33kV and 132 kV level. The export of power to Nepal further increased by around 145 MW with the commissioning of Muzaffarpur (India) – Dhalkhebar (Nepal) 400kV line, which was being operated at 132 kV in 2016.

Export of power to Nepal is expected to further increase by around 145 MW shortly after commissioning of 132 kV line over Katiya (Bihar) – Kusaha (Nepal) and 132 kV line between Raxaul (Bihar) – Parwanipur (Nepal).

Electricity Exports to Bangladesh:
Likewise, Export of power to Bangladesh from India got further boost with commissioning of 1st cross-border Interconnection between Baharampur in India and Bheramara in Bangladesh at 400kV transmission line in September 2013.

It was further augmented by commissioning of 2nd cross-border Interconnection between Surjyamaninagar (Tripura) in India and South Comilla in Bangladesh. At present around 600 MW power is being exported to Bangladesh.

A few more cross-border links with neighbouring countries are in pipeline which would further increase export of Power.

 

India: MMTC Cancels 30,000 MT Pig Iron Export Tender

India’s largest trading house, MMTC has recently held an export tender for 30,000 MT Pig iron on behalf of NINL (Neelachal Ispat Nigam Limited). According to sources, company has canceled the tender as they expected higher bids.

This tender has been closed on 29 Mar’17 with scheduled delivery of the shipment between 15 to 25 Apr’17. Tender received response from two participants at a price level of less than USD 300/MT FOB.

The company may issue the fresh tender for pig iron export soon.

Last tender by MMTC was concluded at USD 316/MT FOB India east coast in second week of March’17.

As per the price circular of MMTC, the price range for the domestic offer of the pig iron is from INR 22,000 to INR 22,500 valid till 31 Mar’17.

 

Anthracite Coal Offers Sink on Low Demand

Anthracite Coal offers have not gone up as demand in international regions was low.

At the same time, the market outlook in India continues to remain bleak as buyers prefer alternate fuels, and there is almost no interest among buyers for Anthracite Coal.

The latest offer for Anthracite Coal is assessed at USD 115/MT CFR India, which is lower by USD 5/MT than the week-ago rate. Anthracite Coal offers are exhibiting a falling trend as demand is decreasing in the international markets.
anthracitecoaloffersFY17

Source: CoalMint Research

In an international round-up, Anthracite Coal stocks at thermal power plants in Ukraine is expected to decline to 182,600 ton, which will be 63% lower than the stocks of 494,100 ton, as on 29 Mar’17.

IMPORTS

It is needless to say that import affinity for the coal is almost nil in India, with a few exceptions. During the 1-27Mar’17 period, a meager quantity of 141.1 ‘000MT was imported into India, data compiled by CoalMint Research shows.

The importers were: Tata Steel, Essar Steel, Jindal Steel and Power Limited and JSW.