Monthly Archives: June 2018

Chinese Steel Market Highlights – Week 26, 2018

This week Chinese steel market witness bearish sentiments over dull demand and weak buying in domestic market.Meanwhile as per reports,China’s currency Yuan (RMB) has depreciated by 3% in last few days amid imposition of tariffs by USA government on Chinese exports.This lead to weakening of market sentiments in China.

Flat steel and rebar export offers witness decline amid weak buying.Coking coal prices also fell marginally owing to dull demand from Chinese buyers.Iron ore prices remained range bound.

Chinese spot iron ore prices remain range bound – Chinese spot iron ore prices opened up this week at USD 64.6/MT, CFR China and fell marginally to USD 63.8/MT towards mid of the week and then again moved up USD 64.45/MT, CFR China. Iron ore inventory at Chinese major ports stood at 157.58 MnT, up by 1.7 MnT W-o-W.

Spot lump premium remained mostly stable at USD 0.22/MT, CFR. Emision cuts in China has boosted demand for iron ore lump & pellets. Spot pellet premium increased and was assessed at USD 60.5/MT, CFR China.

Coking coal offers decline amid weak purchases- Coking coal prices decline this week as sentiment in the Chinese market weakened with buyers awaiting correction.

Previously,in last two months coking coal offers increased to their peak levels owing to uncertainties from Australian supply arising from changes made by Queensland’s rail freight operator Aurizon to its operational and maintenance practices.

Thus currently,Premium HCC prices were assessed at around USD 198.50/MT FoB Australia compared to USD 200/MT FoB basis.

Domestic billet prices in China inch up towards weekend – Domestic billet prices in China have edged up towards week close after witnessing fall throughout the week. Prices are assessed at RMB 3,680/MT (including VAT) for 150*150mm Q235 grade against close of RMB 3,660/MT (including VAT) a day before.

Chinese HRC export offer remained soft amid dull buying- Chinese HRC export offers remain stable and witness marginal drop by the end of this week.

Domestic prices in China rebound amid fluctuating futures which has kept export offers remain firm. Currently Chinese HRC export offers heard around USD 590-600/MT,FoB China. Payment are made on letter of credit basis for 1,000-10,000 MT.

Prices of HRC in the domestic market are gauged at RMB 4,260-4,270/MT (ex-works) in Eastern China and 4,170-4,180 /MT ( Northern China).

Bids from Vietnamese buyers remained on lower side .Thus, weak buying in domestic market may result to decline in HRC exports from major mills in China.

Chinese Re-bar exports offers decline towards the week end-Nation’s re-bar export offers started to increase in the beginning of the week amid strong futures.However towards the end of the week prices started to decline amid depreciation of Chinese currency Yuan against USD.

Currently,nation’s re-bar export offers are at USD 550/MT FoB China. However last week the offers are assessed at USD 558/MT, FoB China

Besides this a major Chinese mill based in northern region has decline their rebar export offers by USD 8/MT and are heard around USD 550/MT ,FoB basis.

Meanwhile prices in the domestic market stood at RMB 3,990-4,030/MT in (Eastern China) and RMB 3,870-3,910/MT in (Northern China).

Chinese Iron and Steel Prices Week 26,2018

Particulars Currency Current  
per MT
1 W 1 M
Spot Iron Ore Fines Fe 62%,CNF
USD 65 65 66
Met Coke, 64%, FoB China USD 374 361 348
Premium HCC,CNF China USD 202.5 206.5 195.87
Billet 150*150 mm,FoB China USD 545 543 535
 Chinese Domestic Billet, ex-works(150*150mm, including 17% VAT) RMB 3,680 3,750 3,690
Rebar, FoB China USD 550 558 546
Wire Rod.FoB China USD 582 582 575
Eastern China Domestic
HRC Prices ex-Works
RMB 4,260 4,290  4,270
HRC, FoB China USD 590-600 595-600 595
CRC,FoB China USD 625 625 625
Plate,FoB China USD 620 620 617

Source- SteelMint Research


Global Ferrous Scrap Market Overview – Week 26, 2018

This week global ferrous scrap market remain abuzz with several deep-sea cargo bookings in Turkey. Importers in India remained silent on currency depreciation and in Bangladesh turned inactive on fall in steel prices. Hyundai Steel kept bids unchanged for Japanese scrap. While Tokyo Steel did not make any revision in Japanese scrap prices.

Indian scrap importers turn silent amid currency depreciation – Indian importers have turned silent for scrap imports amid currency depreciation and sharp decline in domestic scrap prices. Few steel mills are working with stocks available in hand, awaiting clear price trends in the global market in upcoming days. Participants remain waiting presently seeking for the stability of INR against USD.

Price assessment of UK and USA origin containerized Shredded scrap remain stable at USD 382-385/MT, CFR. But HMS 1&2 prices have moved down by USD 5-10/MT on W-o-W basis. Offers for HMS 1&2 (80:20) from UAE stood at USD 355-360/MT and HMS 1 at USD 365-370/MT, CFR.

West African and European HMS scrap was being offered in the range of USD 340-350/MT, CFR. South African HMS 1 assessed at USD 375/MT, CFR Nhava Sheva.

Currently, HMS (80:20) basic prices assessed at INR 25,100-25,300/MT in Mumbai, while INR 24,800-25,000/MT in Chennai, GST @ 18% extra which have dropped INR 600-800/MT on W-o-W.

Steel prices in Pakistan shoot up, few scrap trades reported – A leading steel mill has booked Shredded scrap in containers from a supplier in UK at USD 383-387/MT, CFR port Qasim. While earlier to which, in the closing of last week few deals for UK based shredded were confirmed in the range of USD 380-382/MT, CFR Qasim.

Price assessment for HMS 1&2 (80:20) scrap from UAE and South Africa remained stable at around USD 370/MT, CFR Qasim.

CRC scrap bundles are offered at USD 405/MT, CFR from Europe and no bulk offers were heard. HMS 1&2 (80:20) from UK/Europe origin was being offered in the range of USD 360-365/MT, CFR. The local market is expected to open in full swing in the next week, however local scrap, billet and rebar prices shoot up sharply over currency devaluation.

Bangladesh importers silent on weak steel prices – Offers for containerized Shredded 211 scrap are being reported in the range of USD 395-405/MT, CFR Chittagong. However, very limited buying interest was seen at these levels from Bangladesh buyers. Few limited quantity deals heard to have concluded in the closing of this week. Shredded booked at USD 395/MT, HMS 1 from UAE sold at USD 384-385/MT, CFR and HMS 1&2 (80:20) from West Africa and Europe sold in small quantities at around USD 360-365/MT, CFR.

Local domestic scrap, ship breaking scrap and rebar prices fell by BDT 500-1000/MT W-o-W on overall weak sentiments in the market.

Hyundai Steel kept bids unchanged for Japanese scrap – South Korea’s leading EAF steelmaker – Hyundai Steel has kept bids for all grades of Japanese scrap unchanged following weak Japanese domestic prices. H2 bid assessed stable at Japanese Yen 33,000/MT (USD 298) on FoB Japan basis against the bid placed last week (22nd June).

The steelmaker placed bid this week for H 1&2 (50:50) at JPY 33,500/MT (USD 303). Bids for medium grade scrap like HS and Shredded remained stable at JPY 37,000/MT (USD 334) and for high-grade scrap Shindachi Daichibara (SB) at JPY 40,000/MT (USD 361), FoB Japan.

Hyundai steel also booked Russian A3 grade scrap at USD 348/MT, CFR levels down by USD 7/MT from last weeks’ price report.

Japan’s domestic scrap prices continue downtrend for the second week – According to price indices reported by Japan Iron and Steel Association, domestic scrap prices continue downward for a successive second week in Japan. The average price index for H2 scrap stood at JPY 33,100/MT (USD 299) down by JPY 200/MT on W-o-W basis.

Japanese suppliers remain resistant to the bids placed by Hyundai on optimism about the export market. Average H2 scrap export offers from suppliers assessed in the range of JPY 34,000-35,000/MT, FoB for Kanto and Kansai regions in Japan.

Turkish steel mills finish July deep sea cargo bookings – After observing a slowdown in purchases during national parliamentary elections last week, Turkey-based steel mills have picked up scrap imports this week. Several deep-sea cargo bookings were made this week by Turkish steel mills and as per reports, they have finished bookings for July.

According to SteelMint’s assessment, these recent deals concluded at almost stable levels in the market have maintained the price assessment for USA origin HMS (80:20) scrap at around USD 354-355/MT, CFR Turkey. Last week the assessment was at USD 356-357/MT, CFR. In a recent deal, USA based supplier sold 30,000 MT of Shredded at an average price of USD 368/MT, CFR.

Taiwan scrap import prices remain firm – Import scrap prices in Taiwan remained stable on good demand. Price assessment for US origin HMS (80:20) stood at USD 330-335/MT, CFR, stable against last week. Buyers continued to resist high offers from suppliers.


Indian Steel Market Weekly Snapshot

Indian steel market remains subdued in week-26 (25-30 June) owing to lessen trade activities in domestic market. As per producers in major markets, ongoing monsoon amid disruption of demand-supply chain have pressurised to reduced prices.

As per SteelMint assessment, during the week prices of Billet have declined by INR 300-1,000/MT (USD 4-15) & Long steel – Rebar prices slump upto INR 2,000/MT (USD 29) in across major producing markets.

Inline Flat steel, the prices registered fall of about INR 500/MT (USD 7) in traders market over less buying interest.

Iron ore and Pellets: Iron ore prices in domestic market remained unchanged this week. Domestic pellet offers in India have decreased this week by INR 50-300/MT amid fall in P-DRI prices. However, in western India India pellet offers have remained stable. Pellet prices in Durgapur have decreased by INR 300/MT W-o-W. Southern India (Bellary) based pellet makers have decreased prices INR 100/MT. Central India (Raipur) pellet offers have remained stable this week.

As per the sources Indian pellet export price assessment stands at USD 116-118/MT, CFR China up by USD 4-6/MT, CFR China against last week. According to the market participants report to the SteelMint, Chinese mills are actively looking for Indian pellets cargoes due to strict govt. norms imposed on steel mills in Northern China.

Scrap: Indian importers have turn absolutely silent for scrap imports over unfavourable depreciation of INR against USD making imports costlier. Sharp plunge in domestic scrap prices by INR 600-800/MT on W-o-W basis has made steel mills to prefer it over costlier imported scrap.

Price assessment of UK and USA origin containerised Shredded scrap remain stable at USD 382-385/MT, CFR. But HMS 1&2 prices have moved down by USD 5-10/MT on W-o-W basis. Offers for HMS 1&2 (80:20) from UAE stood at USD 355-360/MT and HMS 1 at USD 365-370/MT, CFR.

West African and European HMS scrap was being offered in the range of USD 340-350/MT, CFR. Participants remain awaiting clear price trends in the global market in upcoming days and few steel mills are working with stocks available in hand seeking for the stability of INR against USD.

Coking Coal: Seaborne coking coal prices fell over the past week as sentiment in the Chinese market weakened with buyers awaiting correction. Offers for seaborne cargoes rose to their highest in over two months last week, primarily owing to uncertainties over Australian supply arising from changes made by Queensland’s rail freight operator Aurizon to its operational and maintenance practices. Nevertheless, coking coal demand has been underpinned by the resumption of full-fledged steel production in China. Import offers for the premium HCC are assessed at around USD 198.50/MT FOB Australia, which amounts to around USD 212.40/MT CNF India.

Semi Finished: Indian Billet offers fall in the range of INR 300-1,000/MT (USD 4-15) due to slow off take of finished goods. In these period major fall of INR 1,000/MT in billet seen in Jalna, Western India. While Sponge offers fluctuated by INR 200-500/MT (USD 2-7) Week-on-Week owing to seasonal effect.

SAIL has floated an export tender for 10,800 MT billets from its Durgapur Steel plant, whose due date for bid submission was 26 Jun’18. And as per the sources, the company was eyeing for levels of USD 530/MT, FoB India. Amid higher bid expectations, the company may cancel the tender or conclude similar quantity for export to Nepal owing to better realisation.

Indian billet exporters interest has increased after currency dropped to INR 69 per USD on falling crude oil prices in global markets. While induction grade billet (100*100 mm) export offers to Nepal drop by USD 20/MT W-o-W & assessed at USD 505-510/MT (ex-mill at West Bengal), equivalent to USD 530-535/MT CFR Nepal (Raxaul border).

Sources reported few deals for sponge iron exports (78-80 FeM, lumps) at an average price of USD 355/MT CPT Benapole (dry land port of Bangladesh & India) and USD 375/MT CFR Chittagong, Bangladesh.

Neelachal Ispat has reduced pig iron prices by INR 400-500/MT (USD 16.5) on 25th June. The latest offers are assessed at INR 28,500/MT (Steel grade) & INR 29,500/MT (Foundry grade), ex-Cuttack, Odisha. Further, MMTC has floated export tender of 40,000 MT non-alloy Pig Iron on behalf of NINL. The due date for submission of bids is 09 July’18.

Recently, NINL produced 3105 MT hot metal on June 28, 2018 to record the highest single-day production since inception. The Kalinga Nagar based company also registered the highest single-day Pig Iron production of 2935 MT on the same day.

SAIL’s Rourkela Steel Plant tender held on 25th June’18 to sell about 8,500 MT steel grade Pig iron. The base price of the tender was at INR 28,100/MT and 6,500 MT quantity have been sold out.

SteelMint’s Pig iron export price assessment stood at USD 380-390/MT FoB India, USD 380-385/MT FoB Brazil and USD 380-390/MT FoB Black sea.

Finish Long Steel: Rebar have been observed sluggish demand in overall region with filtered buying inquiries and loosing semi finish (Ingot/billet) on unrealistic market sentiments.

Further, trade participants are hesitant to procure with uncertain directions where price range got active or slightly improved in last couple of days but finish long steel price range have shrunken by around INR 2,000/MT (USD 29) commodity wise on weekly basis.

Rathi Steels based in North region decrease the price range by around INR 1,000/MT (USD 15) on week basis and currently offering 12 mm Rebars at INR 43,800/MT Ex-work, & excluding GST.

Currently Rebar price for 12-25 mm assessed at INR 39,000-39,200/MT Ex-Jalna, INR 39,400-39,600/MT Ex- Raipur & INR 39,800-40,000/MT Ex-Chennai. All prices are basic & excluding GST.

Flat Steel Market in India continued to remain dull observing marginal price cuts in few major markets. Inactive buying and slow movement of material has kept the domestic flat steel prices under pressure.

Traders and stockiest have lowered offers as end users are reluctant to purchase the material at higher prices.

Over limited domestic trades, Indian mill have booked sufficient quantities of HRC for exports primarily to SE Asian nations.As per reports around 130,000 MT of HRC has been booked in last 20-25 days to South East Asian nations and 10,000 MT of HRC to Middle East nations in the range of USD 610-615/MT CFR basis.Also Indian major JSW Steel is likely to increase their HRC export allocations in near term.

Currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed at INR 45,500/MT (ex-Mumbai), INR 46,000/MT(ex-Delhi), INR 47,000/MT (ex-Chennai). And for CRC (IS513) 0.9mm is hovering in the range of INR 50,500/MT (ex-Mumbai),INR 53,000/MT (ex-Delhi) and INR 52,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.

Thus,Indian major mills are likely to roll over flat steel prices for July shipments amid weak buying.

Indian Raw material and Finished Steel reference Prices as on 30 June 2018 (Week 26)

Products Regions Taxes Prices in INR/MT W-o-W
Pellet Fe 63%, 6-20 mm Ex-Barbil,Loaded to wagon GST at 5% Extra 6,200 0
Iron ore Fe 62%, 10-30 mm Joda loaded to wagon Incld Royalty, DMF & NMET, GST at 5%Extra 5,450 0
Coking Coal, Premium HCC CNF India Prices in USD 211 -5
Scrap HMS (80:20) Ex-Mumbai GST at 18% Extra 25,200 -300
C-DRI 80 FeM Ex-Raipur GST at 18% Extra 21,550 +50
P-DRI 80 FeM Ex-Raipur GST at 18% Extra 19,800 +350
Pig iron Steel grade Ex-Raipur GST at 18% Extra 29,500 -200
Billet 125*125 MM Ex-Raipur GST at 18% Extra 35,150 -250
Rebar (12mm) Ex-Raipur (Medium Scale) GST at 18% Extra 39,400 -300
Wire Rod (5.5 mm) Ex-Raipur GST at 18% Extra 40,300 -300
Structure ( 40 Angle) Ex-Mumbai GST at 18% Extra 39,800 -1,850
HRC (2.5-8 mm) Ex-Mumbai GST at 18% Extra 45,500 -500
CRC (0.90mm) Ex-Mumbai GST at 18% Extra 50,500 -500
HR Plate(5-10mm) Ex-Mumbai GST at 18% Extra 45,000 0

Prices are Ex-works, Exclusive of GST at 18%

Indian Export Reference Prices as on 30th Jun’18

Commodity Size and Grade Prices 1W 1M
Pellet Fe 64% 108 100 96
Billet 150*150 mm 515 515 518
Pig Iron Steel Grade 385 390 380
HRC 2.5-8mm, IS 2062 622 622 622

Prices in USD/MT
Source: SteelMint Research


Bangladesh Importer Books 10,000 MT HRC from Japan – Sources

Bangladesh based steelmakers are actively booking HRC from Japan. Imported HRC offers to Bangladesh from Japan witness decline by USD 5-15/MT on weekly basis.

Recently market sources shared with SteelMint that in the beginning of the week steelmaker based in Bangladesh has booked around 10,000 MT of HRC (1.8-2 mm) from Japanese based steel firm for August shipments. The deal price is heard around USD 655/MT CFR basis.

Last week Bangladesh based importer had booked around 20,000 MT HRC (1.8-2 mm) from Japanese based steel firm for August shipments in the range of USD 660-670/MT CFR basis.

Imported HRC offers from China move down slightly – Imported HRC offers to Bangladesh inched down by USD 5/MT on weekly basis.Chinese HRC export offers remain soft since last few days amid fluctuations in domestic prices.Also imposition of USA tariffs on Chinese products has kept the HRC export offers remained firm.

Major mills in China are offering HRC ( 1.8 – 2 mm) to Bangladesh at USD 650/MT CFR Chittagong.However bids were on lower side which is around USD 640/MT CFR basis.Thus no major deals have been concluded yet.

Last week the price assessment for imported HRC from China stood at USD 660/MT,CFR basis.

Major Bangladesh steelmakers in discussions for buying HRC from Vietnam –According to recent market sources,major Bangladesh steel mills are in discussions with Vietnam’s domestic producer Formosa Ha Tinh Corporation to export HRC. Thus mills in Bangladesh are in discussions to book HRC on monthly basis. However no deal has been concluded yet.


Japan: Manganese Ore Imports Rise Substantially in May’18

According to the Japanese customs, the country witnessed a significant rise of 18% M-o-M in its Manganese Ore imports.

Japan imported 128,474 in May’18 against 107,824 MT in Apr’18. Moreover, on yearly basis, Japanese Manganese Ore imports increased massively as it imported a mere 31 MT in May’17.

South Africa remained the largest exporter of Manganese Ore to Japan at 120,899 MT in May’18, witnessing a whopping rise in its volume by 98% M-o-M against 60,951 MT in Apr’18. Australia was the second largest exporter to Japan in May’18, however, it recorded a substantial decline in its export volume by 84% M-o-M, followed by Gabon.


NMDC to Auction 148,000 MT Iron Ore from Chhattisgarh Mines

National Mineral Development Corporation (NMDC) is going to conduct an e-auction of 24,000 MT calibrated lump ore, 40,000 MT ROM, 60,000 MT iron ore lump and 24,000 MT iron ore fines.

The Iron Ore will be delivered on FOR Ex-Mine Basis by Rail and the contract period is 45 days from the date of issuance of offer.

This rate should be valid for 10 (ten) working days from the date of online auction for the acceptance by the NMDC. Once the rate is accepted by the NMDC the price shall remain firm during the period of contract.

Product description:

Product Grade Size(mm) Qty(in MT) Location
DRCLO Fe 67% 10-40 24,000 Bacheli Mechanical Railway Siding
ROM Fe 65.5% 10-150 40,000 Bacheli Mechanical Railway Siding
Lump Fe 65.5% 6-40 60,000 Kirandul Mechanical Railway Siding
Fines Fe 64% (-)10 12,000 Bacheli Mechanical Railway Siding
Fines Fe 64% (-)10 12,000 Kirandul Mechanical Railway Siding

The miner conducted an e-auction of 40,000 MT calibrated lump ore, 32,000 MT ROM, 60,000 MT iron ore lump and 36,000 MT iron ore fines on 07 Jun’18. As per the sources, 2 rakes of DR CLO (Fe 67%) and 9 rakes of Fines (Fe 64%) were booked. SteelMint has also learned from the sources that, West Bengal based steel maker- Electrosteel had participated and bought Fines (Fe64%).

NMDC rolls over Iron ore prices in Chhattisgarh -:

NMDC (C.G) has kept prices unchanged in its price revision made on 22nd Jun’18 prices revision. Last month, NMDC, Chhattisgarh increased prices by INR 100-170/MT.

 Size Grade (Fe %) Prices (INR) Change (INR/MT)
 10-40 mm, DR CLO 67 3,540 =
 Baila lump , 6-40 mm 65 3,050 =
 ROM, 10-150 mm 65 2,810 =
 Blue Dust/Fines 64 2,660 =

F.O.R prices in INR/MT
Royalty, DMF, NMET and other taxes extra
Source: SteelMint Research

Due Date:
Last date for submitting the required documents is 06 July’18 till 12:00 hrs and the auction will start on same day at 13:00 hrs.

For contact details and other information view TENDER SECTION

South Africa-TFR Coal Exports

South Africa: Transnet prepares for annual coal line shutdown

South Africa- state owned Transnet Freight Rail (TFR) is in advanced stage of planning to carry out its annual shutdown of the coal export line, which is expected to take place from 2 Jul’18 to 11 Jul’18.

TFR provide transportation of a variety of commodities like-Coal, Iron ore & Manganese, Steel and Cement in the country though its business units, amongst which the coal business unit accounts for over 60% of the revenue, (as per the information provided on company’s website).

Through the domestic coal sector, TFR plays a vital role in the transportation of requisite amount of coal to Eskom and other industries for electricity generation. Furthermore, TFR is also responsible for exporting sizeable amount of coal through Richards Bay Coal Terminal (RBCT).

The rail-line shutdown of is an annual exercise carried out to ensure that the company performs its maintenance backlog, thereby replacing the old, obsolete and problematic infrastructures; which cannot be completed without stopping the entire train service.

The maintenance program is generally scheduled around this time of the year to take advantage of the slight fall in coal demand from its major customer, India, when most of the buyers had already stocked requisite coal for the monsoon season.

Last year, TFR’s target of coal transportation of 75.8 MnT was not met due to low commodity prices. However, the company had recorded an annual growth of 2.4% in coal exports at 73.8 MnT in 2017, compared with 72.1 MnT in 2016.


India: JSW Steel Group Owned South-West Mining Wins Jharkhand Iron Ore Mine Block

South- West Mining company – a subsidiary of JSW Group has won Bhangaon iron ore mine block at 89% premium.

Department of Mines & Geology (Govt. of Jharkhand) conducted an e-auction to grant one block of Bhangaon Iron Ore mine on lease in West Singhbhum, Jharkhand. Bhangaon iron ore mine extends to 118 hectares with 40.29 MnTof iron ore reserve. Average Fe range for the mines is 58.3%.

According to the sources, the South-West Mining Company – a JSW group company has won the iron ore mines auction at a premium of 89% for 50 years.

Other participants in the block auction were- Tata Steel, Fomento Rungta Mines, Essel Mining & Industries, Vedanta, and MSPL.

As per reports, an auction will fetch INR 11,536 crore from this auction and 14% ad-valorem royalties for the Jharkhand state.

How will JSW Steel be benefitted from this?

JSW Steel reported highest ever annual performance in FY18. Company’s standalone crude steel output was recorded at 16.27 MnT, up 3% Y-o-Y. The company’s iron ore sourcing stood at 33.10 MnT in FY’18, up 11% as against 29.85 MnT in FY’17. In FY18, JSW Steel procured material through Karnataka e-auctions, NMDC (Chhattisgarh), Odisha & Jharkhand mines and through imports.

The company aims to acquire more iron ore blocks. It has already acquired five iron ore mines in Karnataka in Oct’16. It has already started operation at two of its mines and rest three have obtained 1st stage clearances from MoEF and likely to start by H2 FY19. Collectively they will supply 4.3 MnT p.a.

Thus the steelmaker is aggressively looking out to acquire more iron ore mines so as to reduce dependence on merchant market & imports.


Tata Sponge Production Increases by 7 percent on Improved Efficiency

– Tata Sponge has renovated one of the kiln, which is giving them a better output
– Increased usage of imported coal which enhanced their productivity

Tata Sponge Iron Limited (Tata Sponge) is among India’s largest manufacturer of merchant sponge iron with an annual production capacity of 3,90,000 MTPA. In FY18 the company has achieved its production rise by 6.95%, the report published by the company said.

In the Financial year (FY) 2018, Tata’s Sponge Iron capacity utilization improved to about 107% which was 100% in FY17.

The report said “During the year, we concentrated on increasing efficiencies of various processes without compromising on product quality. Our culture of innovation resulted in considerable bottom-line benefits.”

On Year-on-Year (Y-O-Y) basis, the production of sponge iron reported at 4,17,094 MT in FY18 as against 3,90,000 MT in FY17. The daily average production rate during the FY18 was recorded at 1274 MT/day.

Further with increase in production, total sales of sponge iron also increase by 5% in FY18 to 413,506 MT against 392,782 MT in FY17.

Net profit after tax for standalone unit reported at Rs 14,086 Lakh in FY18, which was about Rs 5,874 Lakh in FY17, surge by 139.80% (approximately) Y-o-Y due to interest cost optimization, enhanced margins and growing business size.

Currently, the plant operates three kilns for sponge iron production using the TDR technology (with Lurgi Modification) & received an Environmental Clearance for producing sponge up to 4,25,000 MT.

The company sourced its entire requirement of iron ore from Tata Steel and 94% of coal of different grades from South Africa.

While the company also engaged in power generation with two power plants – 26 MW based on the waste heat recovery technique. In FY18, the total generation of power was 199.24 MU, recorded growth of 7.56% as against 185.47 MU during the previous year.

TATA sponge plant is located in Odisha, East ; selling material majorly in North East India as well as also involved in exports.


Update: SAIL Likely to Take Call on Billet Export Tender Next Week

Steel Authority of India – a government of India company had floated export tenders for 10,800 MT billet from its Durgapur Steel plant. The tender put up for Prime Mild Steel Non-Alloy Concast billets (125*125mm) offered from Durgapur Steel plant has following specifications – C-0.17-0.23%, Mn-0.6-0.9%, S-0.05% max, P-0.05% max and Si – 0.15-0.35%.

Due date for bid submission was on 26 Jun’18 for which the material shipping was scheduled by 30 Jul’18.

Yesterday SteelMint reported that according to trade sources report, the company received bids at USD 510-515/MT, FoB. However as per the latest update received today from market sources, company is still negotiating with the bidders. The outcome of the tender is expected to be clear by next week.

Global billet export offers weaken – Billet export offers from CIS nations have come down this week to USD 510-515/MT, FoB Black Sea less by USD 5/MT against previous weak. Limited trades have kept the market quiet.