Monthly Archives: August 2017

India: Ferro Silicon Price Gains on Halt in Supply from Malaysia and Russia

Indian Ferro Silicon offers are witnessing a continuous rise on the backdrop of high demand and limited supply.

“Malaysian producers are booked until the end of October and are not taking new orders, while flood caused supply disruption from Russia,” said a producer source indicating that the commodity is only available from Bhutan and the North-East. He further revealed that Indian and Bhutanese producers are gainers in this scenario as the situation prompted them to raise their offers.

Ferro Silicon offers have jumped again on account of the demand-supply mismatch at INR 80,000/MT (Ex-Guwahati) and (Ex-Bhutan). However, the sell-side players are trying to pull up the prices to INR 85,000/MT.

Seaborne demand for Ferro Silicon from the Middle-East and Europe has also supported its higher prices. A producer source revealed that Bhutan has been unable to dispatch lately but it will resume within a few days after the backlog has been cleared.

Ferro Silicon 70% has been assessed at USD 1300/MT FOB India but the producers are quoting at USD 1400/MT as they are confident about the same in view of the present scenario and firm prices in China.

With the constant rise in demand, the market participants were observed to be bullish as they are expecting the elevated prices to find acceptance very soon.

FeSi

 

India: KIOCL Pellet Production Climbs 15 Times in FY17

KIOCL Ltd (formerly Kudremukh Iron Ore Company Ltd) produced 1.46 MnT pellets during FY17 against 0.1 MnT in FY16. Thus on yearly premises company’s pellet production has multiplied 15 times and 1360% Y-o-Y.

Company’s pellet sales increased 239% Y-o-Y from 0.41 MnT in FY16 to 1.39 MnT in FY17.

Out of 1.38 MnT pellets sold in FY17, 0.89 MnT was through exports and remaining quantity of 0.49 MnT was through domestic sales.

KIOCL

Shri MV Subba Rao , CMD (Addl Charge) attributed this growth to the supportive pricing environment, efficiency in production, and swift decision-making in exploiting market opportunity and implementing the concept of ‘Make in India’.

A company press release said here that KIOCL Ltd recorded a profit after tax of INR 47.93 crore during FY17 against a loss of INR 80.15 crore in the previous financial year.

 

China: Plate Export Offers Rise Marginally; Buyers Resist Booking at High Offers

Chinese plate export offers showed the uptrend this week by USD 5-10/MT over optimistic demand in the nation’s domestic market.Although overseas buyers resist buying on higher export offers in the global market.

Current export offers are assessed at USD 535-540/MT, FoB China. Last week the same was heard in the range of USD 520-535/MT,FoB basis.

Meanwhile plate prices in the domestic market are heard in the range of RMB 3,960-3,980/MT, equivalent to USD 600-603/MT including VAT.

Major mills are offering in the range of USD 540/MT,FoB basis.However buyers have withdraw their bookings over sharp rise in plate export offers on bullish sentiments in domestic market.

India-Domestic Plate prices Remain Unaltered, likely to increase
Domestic plate prices remain unchanged this week on account of slow movement of material in the domestic market.Despite this, major Indian mills are planning to raise the prices of plates further by INR 1000-1500/MT in the first week of Sept.

Higher raw material costs and spurt in global prices leads to upsurge in domestic plate prices in Indian market.

However reference prices (basic) for plates (5-10 mm, IS 2062) remained unchanged for this week and are heard at INR 38,500/ MT (ex-Delhi) and INR 38,750/MT (ex-Mumbai).The prices mentioned above are basic prices excluding GST @ 18%.

 

Korea: KOSPO Invites Tender for Purchase of 320,000 MT Coal

Korea Southern Power Co Ltd (KOSPO) has published a tender for purchase of steam coal of quantity 320,000 MT for Samcheok power plant, South Korea.

Each bidder is requested to offer min 80,000 MT in lots of 80,000 MT on FOBT basis.

The shipment shall be scheduled between October and November 2017.

Supply of coal from more than one mine is not allowed,

Specification:

Technical Parameter

Value

Total moisture (as received basis)

Max. 43

Fixed carbon (air dried basis)

Max. 60

Ash (air dried basis)

Max. 4.5

Net calorific value (as received basis)

Min. 3,700 kcal/kg

Ash fusion temperature

Min. 1,050

The offer given by the bidder shall be valid for the period 3 days from the date of tender closing. Although if necessary KOSPO can request the bidder to extend validity period of bid.

This is the second tender floated by KOSPO due on 1 Sep’17 for purchase of steam coal. One is for Hadong power plant (640,000 MT) and second for Samcheok power plant (320,000 MT).

In the month of August KOSPO floated total 9 tender for quantity of 3.36 MnT Coal.

Due date:
The due date for bid submission is 1 Sep’17 at 14:00 hrs (Korean Standard Time).

For contact details view tender section:
http://www.steelmint.com/tender/global-tender-for-purchase-of-steam-coal-8345

 

Daily Update: Indian Sponge & Billet Market

Indian Sponge & Billet prices marginally decline by INR 100-200/MT on 31st Aug. The prices fall in line with stagnant demand and uncertainty in the market.

Today, SteelMint’s price assessment for induction furnaces billet size 125×125 mm are reported at INR 26,200-29,100/MT (USD 409-454) and Sponge C-DRI produced through coal are assessed at INR 17,600-18,900/MT (USD 275-295). All prices are ex-works & excluding of GST.

Key Market Updates:

1. Sponge lumps offers for FeM 80-81 in Gujarat, Ahmedabad hovering at INR 19,000/MT ex-works & excluding of GST.

2. Raipur based Integrated plants offering P-DRI at INR 17,400-17,500/MT which was at INR 17,500-17,600/MT on 30th August.

3. Durgapur based big manufacturers maintain offers at same levels; C-DRI at INR 18,200/MT & P-DRI at INR 17,200/MT for FeM 78.

4. Sunvik Steels in Karnataka kept sponge prices unaltered; offering FeM 80 & 82 C-DRI are INR 17,700/MT and INR 18,100/MT ex-plant

5. Billet exports continue from India’s Western region around USD 520/MT FoB.

6. During current week, Pig iron offers in East India-Durgapur marginally fall by INR 200-300/MT while in Central & South regions it remain unaltered.

7. Market participants are assuming price rise by Large producers for Rebars around INR 1,000/MT for Sep’17 deliveries.

Reference prices as on 31 August 2017

Particular/Delivery Size, Grade, Origin Prices Change 1W 1M
C-DRI Ex-Durgapur  Mix, FeM 78%, +/-1 18,200   0 17,800 17,700
Ex-Rourkela  Mix, FeM 80%, +/-1 17,600 – 100 17,600 16,600
Ex-Raipur  Mix, FeM 80%, +/-1 18,900 – 100 18,800 18,100
Ex-Bellary  Lumps, FeM 80%, +/-1 17,600   0 17,400 16,700
P-DRI Ex-Durgapur  Lumps, FeM 78%, +/-1 17,200   0 16,800 16,700
Ex-Rourkela  Lumps, FeM 78%, +/-1 16,500 – 250 16,800 NA
Ex-Raipur  Lumps, FeM 80%, +/-1 17,400 – 100 17,500 17,050
Ex-Bellary  Lumps, FeM 80%, +/-1 17,200 – 100 17,200 16,400
Ingot Ex-Mandi Gobindgarh  3.5 x 4.5 Inch, IS 2830 29,300 – 100 29,150 28,900
Ex-Durgapur  3.5 x 4.5 Inch, IS 2830 26,850 + 50 26,400 25,950
Ex-Rourkela  3.5 x 4.5 Inch, IS 2830 25,900 – 100 25,800 25,200
Ex-Raipur  3.5 x 4.5 Inch, IS 2830 26,400   0 26,300 26,050
Ex-Mumbai  3.5 x 4.5 Inch, IS 2830 28,200 + 50 27,700 27,450
Ex-Chennai  3.5 x 4.5 Inch, IS 2830 28,500   0 28,750 27,500
Billet Ex-Mandi Gobindgarh  125×125 mm, IS 2831 29,700 – 100 29,500 29,100
Ex-Durgapur  125×125 mm, IS 2831 27,200 + 50 26,750 26,500
Ex-Rourkela  125×125 mm, IS 2831 26,350 – 50 26,300 25,500
Ex-Raipur  125×125 mm, IS 2831 26,900 – 100 26,700 26,500
Ex-Mumbai  125×125 mm, IS 2831 28,400 + 50 27,900 27,650
Ex-Chennai  125×125 mm, IS 2831 29,000   0 29,250 28,000
TMT Ex-Delhi/NCR  12MM 32,950   0 33,000 33,000
Ex-Durgapur  12MM 29,800 – 200 29,500 29,000
Ex-Raipur  12MM 29,600 – 200 29,500 28,800
Ex-Mumbai  12MM 31,600   0 31,400 31,000
Ex-Chennai  12MM 32,750   0 33,000 31,800

Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research

 
Iran Iron Ore Production

Iran: Iron Ore Concentrate Output Up 28%

Iran is listed in the top 15 mineral and metals rich countries.  Iran has about 37 billion tonnes of proven reserves and more than 57 billion tonnes of potential reserves.

An analysis is that the Iran is the only have large underground resources like hydrocarbon, mineral or metal but it is in the top list of the global production numbers of several of it.

It is estimated in some reports that Iran holds more than seven percent of the world’s mineral reserves.

Major Iranian mining companies produced 12.6 MnT Iron Ore concentrate in the first four months of the current Iranian year (started March 21), up 28% Y-o-Y.

Iron Ore Concentrate Output 
According to the report of public relations IMIDRO , Gol Gohar mining company was ranked first with 4.5 MnT iron ore concentrates output, followed by Chadormalu with 2.9 MnT, Central Iron Ore Company with 1.6 MnT, Middle East Mine and Mining Industries Development Company with 1.3 MnT, Gohar Zamin with 1.4 MnT, Sangan Parsian Opal with 0.77 MnT and Sangan Iron Ore Complex with 0.19 MnT.

Granulated Iron Ore Production
Based on the report, 6 major mining companies during the first four months of the current Iranian year produced 1.9 MnT granular iron ore, indicating a decrease of 8% compared with the corresponding period last year.

Central Iron Ore Company ranked first with a production of 0.61 MnT granulated iron ore. Jalal Abad Company and the Iranian Central Plateau with a production of 0.35 MnT ranked second and third respectively.

Sangan, Chadormalu and Mishdowan produced 0.37 MnT, 0.13 MnT and 0.1 MnT respectively.

The Iran Iron Ore production numbers from FY10-11 to FY12-13 show that it has grown consistently.
Iran Iron Ore Production

 

Turkey: Imported Scrap Trade Activities Remain Dull Over Holidays

Turkey imported ferrous scrap market remained quiet this week. No significant trade activities were observed throughout the week.

The reference price index for USA origin HMS 1&2 (80:20) stood at USD 355 /MT CFR Turkey unchanged W-o-W.

Though sellers were expecting few bookings before the holidays, but buyers resisted to accept the offers at such high level and started negotiating with sellers in this week.

Turkish market will remain almost close for this week owing to the holidays for festival ‘Eid-al-Adha’ and ‘National victory day’ amid which no trade activity is expected.

“Market is slow. Everyone is waiting for the Turkey to come back from the holidays to get clear picture of the market and seek direction.”-a market participant shared with SteelMint.

Turkish domestic scrap prices have remained stable this week.

Last bulk cargoes trades have taken place at USD 353-354/MT, CFR Turkey in the last week, after which no trade deals have taken place so far in this week in Turkey.

 

Indian Mill Scale Exporters Eye Other Markets as China Restrict Mill Scale Imports

Indian mill scale exporters are eyeing alternative market like Japan and South Korea as China is likely to restrict mill scale imports by the year end.

A bulk vessel (MV Murou) of 12,000 MT mill scale has been reported at Kandla port, which is due for loading in first week of September. SteelMint learnt from market sources that this cargo will be shipped to Japan. However deal price was not confirmed at the time of publishing this report.

Exporters are also approaching non conventional markets like South Korea and Oman.

China to ban imports of solid waste by year end

On 18 Jul’17, filing with the World Trade Organization (WTO), China’s Ministry of Environmental Protection said that China will forbid import of 4 classes, 24 kinds of solid wastes, which includes mill scale as well.

The WTO filing references recent Chinese government efforts to clamp down on the quality of recovered material imports into the country. “we found that large amounts of dirty wastes or even hazardous wastes are mixed in the solid waste that can be used as raw materials. This polluted China’s environment seriously” the ministry wrote.

“To protect China’s environmental interests and people’s health, we urgently adjust the imported solid wastes list, and forbid the import of solid wastes that are highly polluted.”

Though adoption date has not been specified, but the filing indicates the ban will take effect by the end of 2017.

As per Indian market participants, mill scale inquiries from China continue to remain low. The situation for mill scale is that import of this material is also suspended due to emission problems of the end users of mill scale, which have to improved to meet the requirement before resume import.

India mill scale exports to China

India exported 0.38 MnT mill scale in FY17. Out of which 58% of the material was shipped to China followed by Phillipines and others.

So far in FY18 (till Jul’17) Indian mill scale export summed to 0.09 MnT. China and Malaysia have remained major destinations for Indian mill scale exports so far in FY18.

 
CIL Monthly Coal Production

India: CIL Performance during Jul’17

Ministry of Coal has released monthly performance report of the country’s largest coal miner Coal India Ltd during Jul’17, which has been summarised below.

Coal Production and Dispatch:
CIL coal production was recorded at 36.6 MnT in Jul’17, the company managed to achieve 88.3% of the target of 41.5 MnT coal production during the month, according to the report.

Coal dispatch during Jul’17 has outpaced production for the fourth straight month in FY18, indicating CIL’s efforts to clear excess stocks.
Coal dispatch had increased 7% Y-o-Y to 44.3 MnT in Jul’17 compared with 41.4 MnT in Jul’16.

Coal Dispatch to Power Plant:
Coal dispatch to power plants has declined 10% M-o-M to 31.1 MnT in Jul’17, compared with 34.6 MnT in Jun’17. Also, dispatch in Jul’17 was marginally lower than 31.3 MnT attained during Jul’16.

Coal stock at power plants has fallen to 12 MnT as on 28 Aug’17, enough for 9 days of power generation.

However, Officials from CIL have blamed power plants for the drop in coal stocks, citing that the power companies had not lifted coal during Apr’17-Jun’17 period according to the contract. And now were facing stock crunch, when power demand had spiked during Jul-Aug period.

Moreover, CIL had itself restricted coal production in order to liquidate excess coal stock.

Coal E-Auction:
CIL has allocated 3.88 MnT coal through spot auction in Jul’17, thus gaining 47% increase over notified price. Total coal allotted through spot auctions has fallen 17% Y-o-Y to 13.57 MnT during Apr’17-Jul’17, compared with 16.35 MnT during Apr’16-Jul’16.

In order to step-up supplies to thermal power plants, CIL is temporarily lowering supplies to non-power entities. The company has also floated yearly calendar for auctions, so that consumer can better align their production schedule.

In the special forward e-auction for power sector during Jul’17, CIL has allotted 1.64 MnT coal with an increase of 12% over the notified price.

Although, the monthly allotted quantity fell 33% compared with 2.45 MnT during Jun’16, total coal allotted to power sector through these auctions has increased 60% Y-o-Y to 20.03 MnT during Apr’17-Jul’17, compared with 12.45 MnT during Apr’16-Jul’16.

CIL has also conducted Exclusive e-auction for non-power sector during the month, in which 0.84 MnT coal was allotted with an increase of 9% over the notified price.

Performance Characteristics Jul’17 Jun’17 Jul’16
Coal Production 36.6 39.70 36.74
Overall Coal Dispatch 44.3 45.7 41.4
Dispatch to Power sector 31.1 34.6 31.3
Coal E-Auctions
Spot E-Auction 3.88 3.21 3.93
Special Forward E-Auction for Power 1.64 2.45
Exclusive E-Auction for Non-power 0.84

Source: MoC Report
Quantity in MnT

 

Indian Pig Iron Prices Stable; Market Waits for Neelachal’s Price Circular

In the ongoing week, private Pig iron manufacturers in Central & South regions have maintain offers firm. However, in East India-Durgapur, the offers marked marginal fall by INR 200-300/MT.

Market participants are waiting for NINL’s (Neelachal Ispat Nigam Ltd) price circular, which is due on 1st September 2017 for further direction. NINL is India’s largest merchant steel grade pig iron manufacturer. NINL had increased its prices by INR 1,000-1,250 /MT in last circular, which was notified on 18 Aug’17, Current offers are at INR 24,000-24,250/MT (Ex-Mill).

Offers for domestic steel grade pig iron (Si upto 1.5%) are currently hovering at INR 24,000-25,200/MT (USD 375-394) ex-works & excluding of GST at 18%. Where as export offers are evaluated at USD 355-365/MT FOB India.

The pig iron producers mention that, ” domestic demand is weak but rising coking coal and met coke prices are a cause of worry for manufacturers. “

Most of the manufacturers do not see scope of prices going down, but at the same time upside is limited.

Trade Log:

1. Latest offers in Central India – Raipur are reported at around INR 25,000-25,300/MT against last week assessment of INR 25,000/MT. Induction furnaces are procuring substitute products like CI molds, Scrap & CPC, which is cheaper by Rs 1,000-1,500/MT

2. Jindal Steel is offering – Granulated Pig iron at INR 23,300/MT & Pooled iron at INR 22,300/MT from its new Angul, Odisha plant on ex-works basis.

3. Durgapur based Neo Metaliks reduced offers – Steel grade available at INR 24,500/MT & Foundry grade pig iron at INR 27,000-27,200/MT (Ex-Mill).

4. RSP’s (Rourkela Steel Plant) last tender for 4,800 MT Steel grade pig iron failed to get response due to higher base price, which was set at Rs 24,000/t (Ex-Mill).

5. According to trade participants, offers for steel grade material by SAIL’s DSP (Durgapur Steel plant) & IISCO are at around INR 23,500-23,700/MT ex-plant.

6. Traders in Ludhiana, North India, have mentioned that prices have corrected by INR 500/MT on subdued demand from foundries and improved supply. Offers for Steel grade are at INR 26,500-26,700/MT and foundry grade at INR 28,500-29,000/MT; including local freight & excluding GST at 18%.

7. South India – Prices remain firm and are assessed at INR 25,500/MT FoR Hyderabad.

8. MMTC, India’s largest and state owned trading house on behalf of NINL, has extended the due date for its 30,000 MT non-alloy Pig Iron export tender from 1st Sep to 08 Sept’17.

9. SteelMint pig iron export assessment at USD 355-365/Mt FOB India.

Steel grade Pig iron reference prices as on 31 Aug 2017

Particular/Delivery Taxes Prices 1 Week back 1 Month back
Ex-Cuttack Basic Prices, GST @ 18% Extra 24,000 24,000 22,800
Ex-Durgapur Basic Prices, GST @ 18% Extra 24,500 24,800 23,325
Ex-Giridih Basic Prices, GST @ 18% Extra 24,500 24,300 23,425
Ex-Hyderabad Basic Prices, GST @ 18% Extra 25,300 25,150 24,000
Ex-Ludhiana Basic Prices, GST @ 18% Extra 26,600 27,000 25,800
Ex-Raigarh Basic Prices, GST @ 18% Extra 25,100 24,800 23,950
Ex-Raipur Basic Prices, GST @ 18% Extra 25,000 25,000 24,275
Ex-Vizag Basic Prices, GST @ 18% Extra 24,200 23,700
FOB India* Duty & taxes extra 360 355-360 335

*Prices in USD/MT
Source: SteelMint Research