Monthly Archives: September 2018

ikwezi

South Africa: Ikwezi Mining Begins Operation at its Ntendeka Colliery

Ikwezi Mining, the South African company engaged in development of coal projects in the KwaZulu Natal, Limpopo and Mpumalanga regions, has started mining operations in its Ntendeka Colliery.

The colliery developed under the title of Newcastle project is located in Northern Kwazulu Natal, and has a JORC compliant resource of 294 MnT of coal.

The coal project has reserves of export grade thermal coal which could also be supplied to the local market in South Africa. A coal wash plant of 2.1 MnT per annum capacity has already been commissioned under the project.

A coal wash plant removes more waste material from the coal, which increases its market value and lowers transportation costs.

Market reports have informed that Ikwezi will initially ramp up by selling run of mine (ROM) coal, but once production would stabilise, the company will evaluate the option of bringing the coal wash plant into operation, along with acquiring rail and port access.

Commenting on the start of mining operation, officials from Ikwezi mining have said the API-4 coal index remained in a price range that supports the commencement of mining and should place the operation in a position to start generating cash from its operations.

The API 4 price assessment is the benchmark price reference for coal exported from South Africa’s Richard Bay coal terminal.

South African Coal Offers:
South African coal index has extended its stay on the higher side this week, assessed at USD 101.35 for Oct’18 as on 28 Sep’18.

However, a persistently high index price has compelled the coal miners to raise the discounts in order to attract the buyers.

South African 5500 NAR coal was offered at a discount of USD 21-22/MT, while discount on 4800 NAR was heard at USD 31/MT. 5500 NAR coal price was assessed at USD 91-92/MT, CFR East Coast India.

 

 

 

Bangladesh: Rebar Prices Slide Amid Limited Demand

As per SteelMint assessment, domestic rebar prices in Bangladesh have slightly fallen on weekly basis. Slight price corrections were made by medium scale mills by BDT 500-700/MT (USD 6-8.5) amid limited trade volumes.

As per weekly assessment, currently local Rebar (8-32 mm) prices in Dhaka, Bangladesh by medium-scale mills is hovering at BDT 55,500-56,000/MT (USD 662-668), slip by BDT 500/MT against last week offers.

Although, the large scale manufacturers have kept their prices unchanged and mentioned Rebar demand is little bit slow as people are in wait & watch mood due to upcoming elections in the country.

The latest rebar offers by large scale mills reported at around BDT 62,000-62,500/MT (USD 740-746), Size – 8 mm to 32 mm, 500 W. The prices mentioned above are ex-works & including local taxes.

Further, the domestic Billet prices in Dhaka remained more or less firm and currently traded at BDT 49,500-50,000/MT (USD 591/MT). Procurement interest is slow due to poor off take of finish steel products, as per participants.

Scrap prices — Domestic melting scrap (HMS) reported at BDT 34,500-34,700/MT (USD 412-414) Ex-Chittagong & Imported scrap HMS offers from UK noticed at USD 360-364/MT.

Sponge iron import offers — Indian sponge iron export offers to Bangladesh remain firm and are assessed at USD 378-380/MT, CFR Chittagong. As per participants, in recent a large mill based in Chittagong has booked near about 3,000 MT sponge iron at close to USD 378/MT, CFR.

Wire rod Import — Wire rod (5.5 mm) was recently imported at USD 620/MT CFR from China and last week it was registered at USD 635/MT CFR (5.5 mm) from Indonesia, as per trade participants.

 

Global Ferrous Scrap Market Overview – Week 39, 2018

This week observed stability in Turkish prices amid few more deals concluded for Oct-Nov shipments. Following this, offers to Asian markets like India, Vietnam, Pakistan and Indonesia also assessed stabilized with limited deals reported. Slight upward movement in prices observed in Taiwan and Bangladesh on tight supply. Japan’s Tokyo Steel raised scrap prices at all plants except Utsunomiya amid intense production operations with optimism on high steel demand during ongoing autumn season. South Korea’s Hyundai Steel continued buying domestic scrap amid considerable inventories. China’s scrap prices likely to move up further amid restocking ahead of approaching holidays.

Turkish mills continue bookings at range bound prices – Turkey scrap importers booked Baltic origin scrap at majorly stable prices in recent 4-5 deals. However, USA recyclers remained on the sidelines with price expectations above the current Turkish levels amid strong demand from Asian markets. In the recent deal, 30,000 MT cargo was sold to comprising 23,000 MT HMS 1&2 (80:20) at USD 320/MT and 7,000 MT Bonus at USD 330/MT, CFR Turkey. Thus, price assessment for USA origin HMS (80:20) scrap stood at around USD 324-325/MT, CFR.

Japan’s Tokyo Steel raises scrap prices further except Utsunomiya plant – Japanese market resumed activities this week after three successive days of Autumnal holidays, with EAF steelmakers increase the production for high finish steel demand season. Tokyo Steel raised prices by USD 5/MT at all other plants except Utsunomiya amid depreciating Yen against USD. Now, H2 scrap prices stand at JPY 38,500/MT (USD 341) for Okayama and Kyushu. Prices at largest plant Tahara in central Japan and Takamatsu steel center in Southern Japan now stand at JPY 38,000/MT.

Hyundai Steel continues with individual negotiation for Japanese scrap – South Korea’s leading EAF steelmaker, Hyundai Steel cut domestic scrap prices amid high inventories in hand. Hyundai continues scrap purchases from Japan through individual negotiation instead of bidding for H2.

India imported scrap prices stable, limited deals reported – Indian scrap importers observed stability in scrap prices amid limited trades reported this week. With no strong reason of sharp downward price correction in the near future, scrap market is likely to adjust price levels for fresh round of bookings amid currency seemed to settle down at the new lows ever since.

Offers for UK and Europe origin containerized Shredded scrap heard stable in the range of USD 360-365/MT, CFR Nhava Sheva. While strong demand pushed Dubai HMS 1 offers slightly up to levels USD 355-357/MT, CFR. Minor trades for South African HMS 1&2 in containers learned at around USD 345-350/MT, CFR Nhava Sheva.

Currently, HMS 1&2 (80:20) basic prices assessed at INR 27,800-28,000/MT (USD 383-386) stable on W-o-W, ex- Mumbai. However, in other regions like Kandla, Alang and Ahmedabad prices have weakened on weekly premises. Most of the participants keep preferring local scrap over imported amid considerable availability of local scrap and sponge iron as well.

Pakistan scrap market likely to pick up, steel market improves – Pakistan’s market remained slow in picking up in activities however with the signs of improvement in the local steel demand, scrap restocking activities are expected to increase in coming days. Offers for containerized Shredded scrap heard in the range of USD 360-365/MT, CFR Qasim for Europe and UK origin, which remain almost stable on W-o-W basis. UAE based suppliers remain holding offers for HMS 1 high at around USD 358-360/MT, CFR Qasim. Scrap buyers seemed actively looking for competitive prices on limited inventories in hand. Local steel prices move up PKR 1000-2000/MT for billet and rebar on W-o-W and it is expected to get improved further.

Bangladesh scrap market turns silent amid dull steel demand – Shredded 211 scrap in containers from UK & USA suppliers was being offered stable at around USD 375-380/MT, CFR. Offers assessed for South African origin P&S scrap at around USD 372-375/MT, CFR. HMS 1&2 offers heard at USD 362-365/MT from UK. Local scrap and ship breaking plate prices observed upturn this week. While local rebar demand remained weak affecting buying sentiments and Indian sponge iron export offers turned down on weak domestic prices at USD 380/MT, CFR Chittagong.

Taiwan witnesses marginal rise in scrap prices – Price assessment for US origin HMS (80:20) stands at USD 336/MT, CFR Taiwan in containers amid limited trades.

SE Asia markets observe stable imported scrap offers – Japanese H2 offers heard at USD 355-360/MT,CFR Vietnam while Hong Kong offers assessed for HMS 1&2 (50:50) at USD 348-350/MT,CFR Vietnam. Buying activities slows down in Vietnam on sluggish demand for finish steel. Indonesian offers for oversized P&S from Singapore remained stable at USD 382-385/MT, CFR Jakarta.

 

Sweden: Iron Ore Exports Up 32% in July’18

Sweden, major European iron ore exporter recorded July’18 exports at 2.23 MnT. The exports depicted rise of 32% on monthly basis as against 1.69 MnT in June’18.

On yearly basis, the exports recorded a decline of 14% as against 2.6 MnT in July’17.
In CY’18 (Jan-July’18), Sweden iron ore exports witnessed at 13.63 MT, down slightly against 13.76 MnT for same duration last year (Jan-July’17).

In July’18, an agglomerated (pellets/concentrate) iron ore exports have recorded increase of 27% M-o-M to 1.82 MnT against 1.43 MnT in June’18. However, on yearly basis exports have depicted fall of 10% against July’17 exports at 2.03 MnT.

The non-agglomerated (fines/lumps) iron ore exports recorded at 0.41 MnT in July’18, up 58% M-o-M as against 0.26 MnT in June’18. However, on yearly basis exports declined 27% as against 0.56 MnT in July’17.

Sweden exports to Germany down marginally on monthly basis

Germany remained the largest importer of iron ore from Sweden at 0.55 MnT, contributing 25% share of total Sweden’s export for the month. The imports witnessed 7% decline on monthly basis as against being 0.59 MnT in June’18.

UK stood the second largest exporter at 0.27 MnT followed by Saudi Arabia at 0.18 MnT (down 66% M-o-M).

Egypt and Qatar iron ore exports recorded at 0.16 MnT each in July’18 against being nil a months before.

Country-wise Sweden iron ore exports: July’18 v/s June’18

 Country Jul-18 Jun-18 M-o-M (%) Jan-July’18 Jan-July’17 Y-o-Y (%)
 Germany 0.55 0.59 -7% 4.12 3.54 16%
 United Kingdom 0.27 0 100% 1.11 1.18 -6%
 Saudi Arabia 0.18 0.53 -66% 1.56 1.56 0%
 Finland 0.18 0.15 20% 1.1 1.04 6%
 Belgium 0.18 0.1 80% 0.8 0.86 -7%
 Netherland 0.17 0.17 0% 1.18 1.29 -9%
 Egypt 0.16 0 100% 0.66 0.67 -1%
 Qatar 0.16 0 100% 0.66 0.82 -20%
 Others 0.38 0.16 138% 2.44 2.83 -14%
 Grand Total 2.23 1.69 32% 13.63 13.76 -1%

Quantity in MnT
Source: Sweden Customs
Provisional Data

 

Indian Steel Market Weekly Snapshot

Indian semi finished steel prices moved down this week over limited spot trades & increase supply of Sponge iron on seasonal improved production. On weekly comparison it fell near about INR 500-1,600/MT (USD 6-22/MT).

However towards the week end, the prices of Semis & Long products have started to rebound as buyers/stockiest have started to take positions anticipating less decline from current levels.

In the end of week – 39 (29th Sept), the prices of Sponge iron, Billet & Rebars have increased by INR 100-300/MT, day-on-day. Meanwhile, the Flat steel prices surge during the week by INR 500-1,000/MT in traders market ahead price hike announcement of INR 1,000-1,500/MT in October.

Iron Ore: National Mineral Development Corporation (NMDC) had announced a price hike w.e.f. 26th Sept 2018. The miner had increased Baila fines prices by INR 200/MT, Baila lump by INR 300/MT, ROM by INR 280/MT and DR-CLO by INR 360/MT.Following the hike in prices at its Chhattisgarh mines, miner announced a price hike in its floor prices of Karnataka e-auctions as well. OMC increased base prices for iron ore lump e-auction scheduled on 03 Oct’18 up to INR 800/MT against the last auction held in Aug.

Pellet offers in Indian domestic market are likely to decrease further amid limited inquiries and dull buying interest. Central India (Ex-Raipur) current assessment for Fe 63% pellets is at INR 8,800-9,000/MT (basic, Raipur) against INR 9,000-9,100/MT (basic) at the beginning of the current week. Buying interest is still INR 100-200/MT below than current offers resulting in limited trades. Indian pellet export market remains silent ahead Chinese week-long holidays starting from 01 Oct’18. Assessment remains stable at around USD 150/MT, CFR China for 3% Alumina pellets.

Indian scrap importers have observed stability in scrap prices amid limited trades reported this week. With no strong reason of sharp downward price correction in the near future, scrap market is likely to adjust price levels for fresh round of bookings amid currency seemed to settle down at the new lows ever since.

Offers for UK and Europe origin containerised Shredded scrap heard stable in the range of USD 360-365/MT, CFR Nhava Sheva. While strong demand pushed Dubai HMS 1 offers slightly up to levels USD 355-357/MT, CFR. Minor trades for South African HMS 1&2 in containers learned at around USD 345-350/MT, CFR Nhava Sheva.

Australian coking coal prices have been inching downwards since last week, as most Chinese buyers are still on the sidelines waiting for prices to fall after the increases earlier this month.

Although healthy steel margins can somewhat keep the steel-making raw material’s price supported, but not at current price levels, especially after coke prices began dropping sharply two weeks ago.

China’s domestic metallurgical coke prices have already dropped by RMB 100/MT and more decreases are likely to follow.

Notably, trading activity in the seaborne coking coal spot market was muted on Monday, 24 September with China and other East Asian markets on holiday for celebrating the Mid-Autumn Festival.

Latest spot prices for the Premium HCC grade are assessed at around USD 196/MT FOB Australia and USD 212.40/MT CNF India; while current offers for the 64 Mid Vol grade are assessed at around USD 178.20/MT FOB Australia and USD 194.60/MT CNF India.

Semi finished steel: Indian billet prices remain down this week by INR 500-1,400/MT. In this period major fall of INR 1,200-1,400/MT in billet seen in Rourkela & Durgapur due to limited inquiries and slump in sponge prices.

Further, Sponge iron offers being reduced by INR 400-1,600/MT in major markets. However, offers in Durgapur declined upto INR 1,600/MT over increased selling pressure amid Power cut by DVC.

As per participants, small lots of export deals were concluded for Billet to Nepal. The deal price for the Billets reported at close to USD 475/MT, fall from a week ago at USD 500-505/MT, ex-mill, Durgapur. While few manufacturers offering as of now at USD 465-470/MT loaded to rake, Odisha.

Indian sponge iron export deals to Bangladesh for lumps grade(FeM 78-80) reported at close to USD 378-380/MT CFR Chittagong, Bangladesh.

Neelachal Ispat Nigam Ltd (NINL), India’s largest and state owned steel grade pig iron manufacturer & exporter has extended its price circular validity till 29th Sept which was expired on 27th Sept. The offers for Steel (N1) grade material was at INR 30,200/MT (USD 420), ex-Cuttack, Odisha.

Jindal Steel has reduced prices by INR 300/MT and latest prices reported for Panther shots (Granulated pig iron) at INR 29,200/MT ex-plant, Odisha.

RINL has invited a tender for export of 10,000 MT Billets, 25,000 MT Blooms and 5,000 MT Wire Rod whose bid submission was till 25 Sep’18. However, the company has gone for re-tendering amid limited participation. The new tender floated has due date of 03 Oct’18 -Sources.

SteelMint’s Pig iron export price assessment stood at USD 363-375/MT FOB Brazil, USD 365-370/MT FOB Black Sea & USD 380-390/MT FOB India.

Indian Finish Long steel secondary market remained slow led by weakening semi finish and inadequate buying interest along with rising inventories in particular regions. This urged steel mills to adjust the price range as per demand.

Further, price range contracted by around INR 800-1,000/MT commodity wise and major reduction noticed in North & East region. As per market participants, they are expecting price range might improve slightly amid indications of price hike by large scale producers in Finish Long for Oct’18.

Wire rod trade discount offered by manufacturers/suppliers in Raipur has remained more or less steady compared to last week which is now in the range of INR 900-1,400/MT depending on the quantity.

Ghaziabad based medium scale structure manufactures have reduce the guage parity up to INR 1,000/MT in particular sizes in past week.

In the beginning of the week, Vizag Steel (RINL) has marginally increased prices in rebar & rounds by INR 200/MT and wire rod by INR 250-300/MT (USD 3-4) for rest of Sep’18.

As per market participants, looking at continuous increase in iron ore prices, the large players (SAIL, Tata Steel RINL & JSW Steel, JSPL) are most likely to increase its long steel prices by about INR 500-1,000/MT in starting of Oct’18.

Currently, rebar prices will be offered by the large scale producers close to INR 43,400-43,900/MT ex-Chennai, INR 44,300-44,800/MT in Delhi/NCR, Size – 12 mm & excluding GST at 18%. And for Medium mill owners trade reference rebar (12-25 mm) price assessed at INR 38,900-39,300/MT Ex- Jalna, INR 38,000-38,200/MT Ex- Raipur, INR 42,100-42,400/MT Ex-Chennai. All prices are basic & excluding GST.

Finish Flat Steel: This week India’s domestic HRC & CRC prices increased by INR 500-1,000/MT in traders market on anticipation of increase in flat steel prices by major Indian steel mills in October.

Announcement regarding price revision is expected to be made shortly. Major mills have planned for price hike of INR 1,000-1,500/MT for October. However govt. owned mill – SAIL has already announced hike of INR 500/MT last week and revised prices have come into effect from 21st Sept’18.

Thus current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 47,000-47,250/MT (ex-Mumbai) & INR 47,000-47,200/MT (ex-Delhi).The prices for CRC (IS513) 0.9mm is hovering in the range of INR 53,000-53,500/MT (ex-Mumbai) & INR 53,500/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18% on cash payment basis.

Increased iron ore prices,costlier imports and depreciated Indian currency along with govt’s proposed hike in steel import duty are the reasons which is supporting price hike by Indian mills.

Indian Raw material and Finished Steel reference Prices as on 29 September 2018 (Week 39)

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 8,200 -350
Iron ore 6-40 mm, Fe 65% Chhattisgarh Excluding Royalty, DMF & NMET. GST @ 5% extra 3,850 +500
Coking Coal, Premium HCC CNF India Prices in USD 212 -9
Scrap HMS (80:20) Ex-Mumbai GST at 18% Extra 27,300 -700
C-DRI 80 FeM Ex-Raipur GST at 18% Extra 24,400 -1,500
P-DRI 80 FeM Ex-Raipur GST at 18% Extra 22,700 -1,700
Pig iron Steel grade Ex-Raipur GST at 18% Extra 31,300 -200
Billet 125*125 MM Ex-Raipur GST at 18% Extra 34,300 -1,100
Rebar (12-25mm) Ex-Raipur (Medium Scale) GST at 18% Extra 38,100 -800
Wire Rod (5.5 mm) Ex-Raipur GST at 18% Extra 40,900 -300
Structure ( 40 Angle) Ex-Mumbai GST at 18% Extra 41,300 -500
HRC (2.5-8 mm) Ex-Mumbai GST at 18% Extra 47,250 +750
CRC (0.90mm) Ex-Mumbai GST at 18% Extra 53,000 +1,500
HR Plate(5-10mm) Ex-Mumbai GST at 18% Extra 47,000 0

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

Indian Export Reference Prices as on 29th September’18

Commodity Particular/Delivery Size and Grade Prices 1W 1M
Pellet FOB India 6-20 mm, Fe 64% 141 141 138
Scrap CNF India HMS(80:20), Europe 345 343 325
Billet FOB India 150*150, IS 2830 490 495 495
Pig Iron FOB India Steel Grade 385 385 377
HRC FOB India 2.5-8mm, IS 2062 583 583 593

Prices in USD/MT
Source: SteelMint Research

 

Iranian Billet Export Offers Remain Stable Post Holidays

Iran, one of the largest billet exporter in world has exported 1,417,000 MT billet and bloom during the first five months of current Persian year (21-Mar till 22-Aug’18). As per the data released by ISPA, export of billet during the period was reportedly up by 13% Y-o-Y against 1,253,980 MT during the same period of last Persian year.

As per the assessment billet export offers were stable and were noted to be around USD 460-465/MT FOB. It is to be noted that billet FOB offers in Iran slide down since last month. Last month the offers were noted to be around USD 475-480/MT FOB.

One of the main reason for decrease in export offers is still unavailability of vessels to ship the cargo to GCC nations and Far East Asian countries. Many of the shipping companies have quit their operations in Iran causing a mayhem in export market.

KSC – Iran’s largest billet exporter has recorded nil billet exports in 5th month of current Persian year, as per data released by IMIDRO

Khouzastan Steel Company (KSC) was the largest exporter of billet and bloom during the period despite of the fact that the company didn’t exported any billet/bloom in the current month. The company exported 580,370 MT in current year, registered a downfall of 32% Y-o-Y against 853,393 MT exported in last Persian year.

South Kaveh Steel Company (SKSCO) was the second largest exporter of billet, the company exported 365,000 MT billet during the period, registered a growth of 23% Y-o-Y against 296,748 MT exported in last Persian year.

Khorasan Steel was the third largest exporter of bloom, the company exported 75,189 MT during the period.

 

Chinese Steel Market Highlights – Week 39, 2018

This week Chinese steel market witnessed slowdown in trades and downtrend in domestic steel prices amid bearish sentiments prevailing in domestic market ahead of National day holiday. Also tedious buying from overseas buyers have kept export offers on lower side.

Chinese steel mills will be on week long holiday from 1st Oct-7th Oct ‘18 to mark country’s National day. Meanwhile country’s Ministry of Ecology & Environment recently instructed cities in northern China experiencing heavy pollution to initiate plans to curb emissions generated by industries including steel, oil and gas refining, coal-based electricity, chemicals and non-ferrous metals mining.The plans will come into effect from 1st Oct’18 till Mar’19.

Thus flat steel export offer fell further over tedious demand. Rebar export offers continue to remain range bound.Billet export offers witness decline this week in line with falling domestic billet prices.Coking coal offers fell further this week and iron ore prices edged up towards weekend amid restocking.

Tsingshan Group has announced to raise its HC Ferro Chrome purchase price by RMB 300/MT (USD 43/MT) M-o-M for October delivery.

Chinese spot iron ore prices edge up towards weekend amid restocking– Chinese spot iron ore prices opened up this week at USD 68.8/MT,CFR China and increased to USD 69.5/MT, CFR China towards the week end.The prices witnessed rise amidst restocking ahead of the Chinese Golden week holiday from 1st Oct to 7th Oct.

Iron ore inventory at major Chinese ports have reduced sharply this week. The stocks witnessed fall of 3.4 MnT to 145.70 MnT, as against 149.10 MnT, last week. Spot lump premium has witnessed slight uptick this week at USD 0.3405/DMTU as against USD 0.3400/DMTU last week.

Spot pellet premium inched up:Spot pellet premium for Fe 65% grade pellets has witnessed slight increase this week and is assessed at USD 87.75/DMT, CFR China, up by USD 0.65/DMT W-o-W against USD 87.1/DMT a week before.

Owing to strict governmental regulations in China, steel mills prefer high-grade ore. However,demand for pellet is low compared to lump and fines and is likely to pick up after a week long holiday.

Coking coal offers fell further this week- Seaborne coking coal witness significant fall this week amid weak buying from steelmakers in China.Since Chinese steelmakers are anticipating further fall in coking coal prices.

Meanwhile in the beginning of the week trading activity remained dull after Mid Autumn holiday.

Currently Premium HCC prices inch down by USD 9/MT W-o-W basis and are assessed around USD 196/MT FoB Australia.Last week the offers was in range of USD 205.50/MT FoB basis.

Chinese domestic billet prices fall– Domestic billet prices in China have come down amid soft demand. Current spot price assessment is at around RMB 3,880/MT (including VAT) for 150*150mm billet Q235 against RMB 4,030/MT in last week. Chinese billet export price assessment fell marginally W-o-W at USD 520-530/MT, FoB basis.

Chinese HRC export offers decline further this week ahead of national day holiday- Chinese HRC export offers fell further owing to limited buying from overseas buyers.Meanwhile bearish sentiments amid national day holiday which is starting from 1st Oct along with winter production cuts lead to downward trend in flat steel prices from China.

Currently Chinese HRC export price assessment is heard around USD 565-570/MT, FoB China. Payment made on letter of credit basis for 1,000-10,000 MT. Last week the offers were hovering in range of USD 560-565/MT FoB China.

Meanwhile major mills are offering on higher side which is around USD 570-580/MT FoB China.

Domestic prices down by RMB 60-70/MT on W-o-W basis.Prices of HRC in the domestic market are gauged at RMB 4,220-4,250/MT (ex-works) in Eastern China and RMB 4,140-4,150 /MT in (Northern China).

Chinese Re-bar export offers remain range bound-This week Chinese rebar export offers remain range bound as the prices in domestic market started declining.Meanwhile market participants are expecting drop in demand after week long holidays along with winter production cuts starting from 1st Oct’18.

Currently,Chinese re-bar export offers are at USD 569/MT FoB China.Last week the offers was hovering in the range of USD 565-569/MT FoB basis.

Domestic prices witness fall by RMB 20/MT W-o-W basis. Domestic rebar prices stood at RMB 4,510-4,560/MT in (Eastern China)  and RMB 4,310-4,350/MT in (Northern China).

Chinese Iron and Steel Prices Week 39,2018

Particulars Currency Current  
Prices 
per MT
1 W 1 M
Spot Iron Ore Fines Fe 62%,
CNF China
USD 69 70 66
Met Coke, 64%, FoB China USD 366 376 382
Premium HCC,CNF China USD 212 218 192
Billet 150*150 mm,FoB China USD 525 536 538
Chinese Domestic Billet,
ex-works(150*150mm,
including 17% VAT)
RMB 3,880 4,030 4,080
Rebar, FoB China USD 569 568 565
Wire Rod.FoB China USD 590 590 590
Eastern China Domestic
HRC Prices ex-Works
RMB 4,257 4,338 4328
HRC, FoB China USD 560-565 560-570 582
CRC,FoB China USD 610 610 615
Plate,FoB China USD 600 600 607

Source- SteelMint Research

 
Japan Coal Imports

Japan: Coal Imports Up 12% M-o-M in Aug’18

Japanese coal imports have increased 12% on the month in Aug’18 to attain its highest total for CY18. As per the data provided by Japanese customs, the country’s coal import was 18.37 MnT in Aug’18 against 16.37 MnT in Jul’18.

In order to meet unseasonably high power demand, Japan had boosted volumes of non-coking coal in August as the utilities continue to favour coal-fired generation to capitalise on coal’s competitive pricing against gas.

Coal Import in Aug’18 was 10% higher on the year compared with 16.77 MnT recorded in Aug’17. However, total imports during the first 8 months of CY18 (Jan’18-Aug’18) has slightly came down to 130 MnT as against 131.31 MnT in Jan’17-Aug’17 period.

Grade-wise Coal Imports:
Import of all the major coal grades had increased on the monthly basis in Aug’18.

Japanese non-coking coal and Anthracite coal imports rose to its highest monthly total for CY18, recorded at 12.18 MnT and 0.57 MnT respectively in Aug’19.

Coking coal imports grew 27% M-o-M to 3.92 MnT in Aug’18 compared with 3.09 MnT in Jul’18. Pet coke and Met coke imports were marked at 0.45 MnT and 0.2 MnT respectively during the month.

Grade Aug’18 Jul’18 % Change
Non Coking Coal 12.18 11.72 4%
Coking Coal 3.92 3.09 27%
Anthracite 0.57 0.43 33%
Pet Coke 0.45 0.32 41%
Met Coke 0.2 0.12 67%
Others 1.06 0.68 56%
Grand Total 18.37 16.37 12%

Source: Japanese Customs
Quantity in MnT

Major Coal Exporters:
Australian coal exports rose 16% on the month to 10.99 MnT in Aug’18, which was also the highest monthly total for CY18. On the yearly basis, Imports in Aug’18 were marked 8% higher on the year than the levels attained in Aug’17.

Indonesian exports of 2.88 MnT coal in Aug’18 was the highest total since Jan’18. The country’s coal supplies to Japan had increased both on monthly and yearly basis.

Coal supplies from the third-largest coal exporter-Russia had however fell 7% M-o-M to 1.89 MnT in Aug’18, compared with 2.03 MnT in Jul’18, but were still 15% higher on the year from 1.65 MnT in Aug’17.

US, Canada, China and Mozambique were among the other major coal exporters to Japan in Aug’18.

Japan country-wise Coal Import

Source: Japanese Customs | Quantity in MnT

 

 

India: Domestic Pellet Offers Decline Amid Less Inquiries

Pellet offers in Indian domestic market are likely to decrease further amid limited inquiries and dull buying interest.

Central India pellet offers under pressure amid competitive offers from eastern India-

According to SteelMint’s conversation with market sources, Central India (Raipur) pellet offers have decreased consistently from the beginning of this week. Current assessment for Fe 63% pellets is at INR 8,800-9,000/MT (basic, Raipur) against INR 9,000-9,100/MT (basic) at the beginning of the current week. Buying interest is still INR 100-200/MT below than current offers resulting in limited trades.

Offers from an Odisha based pellet maker is heard to be around INR 8,900/MT landed to Raipur which has kept Raipur pellet offers under pressure. Sponge makers are not buying expecting a further decline in prices. Most of them have adopted a wait and watch policy.

P-DRI prices in Raipur have also decreased sharply by INR 1800/MT to INR 22,600-22,800/MT against last week assessment at INR 24,500/MT.

Eastern India pellet prices decline following a decline in semi-finished prices sharply-:

Durgapur pellet price assessment has also lowered by INR 300/MT to INR 8,200/MT (delivered) against the last assessment at the beginning of this week at INR 8,400-8,500/MT. However, bids are still lower by INR 100-200/MT than present offers. Rashmi Metaliks is still not offering pellets in the domestic market.

P-DRI prices in Durgapur have decreased sharply by INR 1,500-1,600/MT to INR 20,700-20,900/MT against last week’s assessment at INR 22,100-22,300/MT (delivered).

Trade-wise Updates-:

1. Southern India (Bellary) based pellet makers have kept pellet price stable at INR 8,100-8,300/MT (basic) in line with last week assessment.

2. Indian pellet export market remains silent ahead Chinese week-long holidays starting from 01 Oct’18. Assessment remains stable at around USD 150/MT, CFR China for 3% Alumina pellets.

 

Japan: Ferrous Scrap Exports Edge Up in August on Rising Vietnamese Purchase

Japan, world’s third largest ferrous scrap exporter after EU-28 and US, witnessed upturn in scrap exports in Aug’18 after witnessing fall in July. As per recent customs data, Japan exported 605,933 MT ferrous scrap in Aug’18, up 2% M-o-M as compared with 594,674 MT ferrous scrap exports recorded in Jul’18. Scrap imports from Vietnam increased 18% M-o-M while imports from Bangladesh and Thailand increased significantly in Aug’18 resulting in rising scrap export volumes from Japan.

On yearly premises, Japan’s ferrous scrap exports noted a fall of 14% Y-o-Y as against 710,696 MT scrap exports in Aug’17. The country has been witnessing a considerable fall in its scrap exports this year against last year majorly on falling Chinese demand.

Speed up in production activities after summer amid cheaper electricity rates could have resulted in rising domestic consumption and crude steel production in Aug’18. As per statistics released by World Steel Association, Japan’s crude steel production observed upturn after two successive fall which stood at 8.81 MnT in Aug’18 as against 8.42 MnT in Jul’18.

Japanese scrap export prices remain on uptrend in Aug’18 – Average Japanese H2 scrap prices turned up at JPY 35,500-36,000/MT, FoB in August as against JPY 34,000-34,500/MT, FoB levels in Jul’18. Higher scrap exports prices as compared to global levels kept export activities bounded to South Korea, China and Taiwan from Japan in Aug’18.

South Korea remains the largest importer of Japanese scrap – South Korea imported 301,881 MT ferrous scrap occupying 50% share in total Japanese scrap exports in Aug’18 , which have come down 5% M-o-M as against 318,431 MT in Jun’18. Major South Korean steelmaker kept away from Japanese scrap amid high price expectation and remained preferring USA and Russia bulk cargoes over Japanese H2.

Second largest importer, Vietnam imported 153,345 MT (up 18% M-o-M) followed by China (68,120 MT, down 20% M-o-M) and Taiwan (43,547 MT, down 22% M-o-M) from Japan. Other major importers like Bangladesh (22,492 MT) and Thailand (10,563 MT) observed rise in scrap imports from Japan by multi-fold in Aug’18.

Japanese ferrous scrap exports decline 8% during Jan-Aug’18 – Japan exported 4.88 MnT ferrous scrap during Jan-Aug’18, down 8% Y-o-Y as against 5.32 MnT exports during the same period last year. Falling demand from major importers like China, Taiwan and other Asian markets, slowdown in purchases of low grade and H2 scrap from South Korea along with strong domestic demand on Olympics-2020 constructions have resulted in lowering scrap exports from Japan in CY18.

During the first eight months of 2018, Japan’s crude steel production edge up marginally to 70.19 MnT which was recorded at 69.64 MnT in the same period last year.

Country-wise Japan ferrous scrap exports –

Country Aug’18 Jul’18 M-o-M % Change Aug’17 Y-o-Y % Change Jan-Aug’18 Jan-Aug’17 Y-o-Y % Change 
South Korea 0.30 0.32 -6.25% 0.29 3.45% 2.71 2.53 7.11%
Vietnam 0.15 0.13 15.38% 0.18 -16.67% 1.00 1.00 0.00%
China 0.07 0.08 -12.50% 0.12 -41.67% 0.65 1.14 -42.98%
Taiwan 0.04 0.06 -33.33% 0.02 100.00% 0.33 0.34 -2.94%
Bangladesh 0.02 0 _ 0.04 -50.00% 0.06 0.13 -53.85%
Others 0.03 0.00 _ 0.06 -50.00% 0.13 0.18 -27.78%
Total 0.61 0.59 3.39% 0.71 -14.08% 4.88 5.32 -8.27%

Quantity  in MnT,
Source: SteelMint Stats