Monthly Archives: February 2019

Essel Mining Cuts Iron Ore Lump Prices by Rs 400/MT (USD 6/MT)- Sources

Eseel Mining, a unit of Aditya Birla group is set to reduce its offers for iron ore lumps by Rs 400/t ($5.6). Essel Mining is one of the largest merchant iron ore miners with an annual capacity of 10 million tonnes per annum in the state of Odisha.

According to sources, prices after correction for 65% Fe calibrated iron ore lumps (5-18mm, suitable for DRI plants) stands at Rs 5,925 ($83.5) and 10-30mm ( used by Blast Furnaces, 65%) stands at Rs 5,525/t ($77.8) including royalty and taxes on FoR basis.

Price revision on iron ore fines cannot be confirmed at the time of publishing.

Essel Mining had raised its iron ore prices on 2nd week of Feb by Rs 400-500/t.

Reasons for price cut

1. Falling global iron ore prices, which increased after Vale damn disaster. Prices have dropped from $94/t to $84.8 on CIF China basis

2. Falling pellet prices in Indian domestic market on low export demand, which was the key factor on which Indian miners raised prices

3. Rising iron ore production by Odisha miners in order to use their existing EC limit for the financial year FY19

 

India: DGFT Exempts PSIC for Metal Scrap Imports at Mundra Port

Metallic waste & scrap imported from safe countries/regions i.e US, UK, Canada, New Zealand, Australia and EU will not require PSIC if consignments are cleared through 7 ports including Mundra.

Directorate General of Foreign Trade (DGFT) an organization responsible for implementing the foreign trade policy in India under the Indian Ministry of Commerce and Industry has announced, under Public Notice No. 75/2015-2020 issued by DGFT on 25th February, 2019 that, DGFT has exempted the Pre-Shipment Inspection Certificate (PSIC) for metal scrap imports in Mundra Port along with the earlier six ports as Chennai, Tuticorin, Kandla, JNPT, Mumbai and Krishnapatnam.

Public Notice No. 38/ (2015-2020) issued by DGFT on 6th October 2016 states that:-

Further, an ICD can handle clearance of un-shredded metallic scrap provided the same passes through any of the designated seaports as mentioned above or any new ports to be noted/ designated from time to time, where Radiation Portal Monitors and Container Scanner are in operation and the consignment is subject to risk-based scanning/ monitoring as per the protocol laid down by customs.

The above statement thus states that if any container in Mundra Port passes through operational Radiation Detection Scanners can be cleared at any ICD without PSIC.

Import through all other ports including nine ports (for unshredded scrap) irrespective of country of origin, will be subject to PSIC. With this, total no. of seaports for metal imports are increased from 14 to 15 in India.

DGFT exempted metallic waste and scrap (shredded and unshredded/ HMS 1&2) coming from five developed countries defined as ‘safe countries/regions’ in the notice USA, UK, Canada, New Zealand, Australia and the EU-28 (Europe), from requiring a pre-shipment inspection certificate (PSIC).

India imported 5.29 MnT ferrous scrap in CY2018, up 16% Y-o-Y. Major exporters were UAE, UK and US. Mundra port accounts for around 4-5% share in India’s total ferrous scrap imports.

 

SE Asia: Imported Scrap Market Observes Limited Trades

SteelMint learned from market participants that imported scrap trades in SE Asia remained limited on high offers and availability of stocks in hand. Most of the steel mills likely to wait for the next couple of weeks to start end-April & May delivery shipments.

Vietnam steel mills eye drop in offers, few deals reported – According to sources, Vietnam steelmakers have observed some conclusions however overall sentiments remained slow. Offers for bulk HMS (80:20) was assessed around USD 335-340/MT, CFR from US and USD 340/MT, CFR from Australia. Offers remain around USD 330-335/MT, CFR South Korea however, very limited inquiries heard.

In recent trades, a northern region based steel mill booked Hong Kong origin HMS 1&2 (50:50) scrap in bulk volume at around USD 339-340/MT, CFR. A bulk cargo comprising Japanese premium scrap heard to have booked at around USD 375/MT, CFR Vietnam.

Buying interest for Japanese scrap remains weak – According to sources, some bids for Japanese H2 reported at around USD 330-332/MT, CFR Vietnam in bulk cargoes. Japanese H2 offers remain in the range JPY 33,000-34,000/MT, FoB Japan while domestic scrap price stands at JPY 34,000/MT at Utsunomiya works of Tokyo Steel.

South Korean scrap demand remained subdued – Amid high inventories, Hyundai Steel hasn’t presented open bids for Japanese scrap since past one month, and also stopped purchases of higher grade scrap from Japan.

As per SteelMint’s Statistics –

— Japan’s exports to Vietnam fell sharply by 73% M-o-M to 46,956 MT ferrous scrap against 174,962 MT in Dec’18.

— Thailand’s ferrous scrap imports recorded at 101,990 MT in Jan’19, down 2% M-o-M against 104,491 MT in Dec’18 and down 43% Y-o-Y against 178,698 MT in Jan’18.

 

Imported HRC Offers to Bangladesh Remain Firm Over Limited Bookings

This week imported HRC offers to Bangladesh remain unchanged from China. Currently imported HRC (1.6-2mm) offers from China’s major mills are heard in range of USD 575-580/MT CFR Chittagong.

Chinese HRC export offers have continued to remain strong and offers are constantly showing uptrend over recovery in demand and optimistic sentiments prevailing in domestic market. Importers based in Bangladesh shared that Chinese based major steel mills are offering HRC at around USD 535-540/MT FoB basis.

Meanwhile Taiwan steel mills are also offering HRC on higher side which is around HRC (1.6 mm) at around USD 587/MT CFR Chittgong.

Market participants based in Bangladesh shared that,”Imported HRC offers continued to remain on higher side. However Bangladesh based HRC importers had made significant bookings in month of Nov-Dec’18 when Chinese HRC export offers was on downside, owing to which significant bookings in last couple of weeks was not seen.”

Bangladesh Bulk Import Data for Feb’19- As per provisional data maintained with SteelMint, Bangladesh bulk vessel imports in Feb’19 stood at 44,740 MT in Feb’19 inched down by 2% against 46,260 MT in Jan’19.

 

India: MMTC Invites EoI for Supply on Non- Canalised Iron Ore

MMTC– India’s largest and state-owned trading house, has floated EOI for empanelment of mine owners/ suppliers/ traders for the supply of non-canalised Iron Ore Fines and CLO.

The material offered has a specification for Non-Canalised iron ore 58% to 63.50% Fe & less than 57.50% Fe.  Presently, the Export duty is 30% for Iron ore grades having Fe content 58% + (i.e. Fe above 58%). For Iron ore exports having Fe: Below 58% i.e. 57.99% below, no export duty is leviable.

The material to be exported to China/foreign countries on f.o.r/fob price per wmt basis. Material to be loaded from  Gopalpur/ Paradip/ Haldia/ Visakhapatnam ports.

The sealed bids shall be opened on the same day at 16.00 hrs. The due date for submission of bids is 15:00 hrs on 11th Mar’19.

 

India: Global Tender for Sale of 12,000 MT Pet Coke 

Rashtriya Ispat Nigam Limited (RINL), also known as Vizag Steel is a navratna PSE under the ministry of steel has invited a global tender for sale of 12,000 MT Pet coke at Visakhapatnam, India.
Validity: Each tenderer shall keep his Offer firm and valid for acceptance by RINL for a period of 90 (Ninety) days from the actual date of opening of tenders i.e. scheduled due date or extended due date, whichever is later.
Delivery Schedule: Tentatively 1000 MT/month (and @ 500 MT per 15 days) from April’2019 onwards till completion of supplies, as per 15 days delivery schedules mentioned by RINL-VSP in Purchase Order (PO)/ LOA.

Specification

Coal Quality Parameters Value
FIXED CARBON 99.00% MIN
SILICON 0.05% MAX
SULPHUR 1.0% MAX
FE 0.04% MAX
VOLATILE MATTER 0.40% MAX
ASH CONTENT 0.50% MAX
MOISTURE 0.10% MAX
SIZE 0 -10 MM
SIZE TOLERANCE +10 MM SHOULD BE NIL

Due date (IST)

Due date of bid submission is 08.03.2019 10:30 AM hrs.

For Specifications, Contact and Other Details CLICK HERE

 

Bangladesh: Rebar Offers of Medium Mills Inch Up

Rebar offers of mid sized mills in Bangladesh have slightly gained this week following active demand by participants, as reported by sources.

SteelMint learned that, finished steel demand is better as compared to last week and medium mills slightly increased rebar offering by around BDT 500/MT (USD 6) in Dhaka.

As per weekly assessment, the local Rebar prices in Dhaka, Bangladesh through the mid size mills hovering at BDT 59,500-60,000/MT (USD 708-714) for 500W. The prices are ex-works, including local taxes & size 8-32 mm.

However, the large mills have kept Rebar prices unchanged and reported at BDT 63,500-64,500/MT (USD 756-767), similar against last week offers. The prices are ex-works, including local taxes & size 8-32 mm.

Meanwhile domestic Billet price range being increased in Bangladesh and stood at around BDT 50,500-51,000/MT (USD 601-607), which was BDT 50,500-51,000/MT (USD 601-607) last week, ex-works in Dhaka.

Sponge Iron Import Offers: As per participants report, recent deal of sponge iron import has been concluded of Indian origin at around USD 330/MT, CNF Chittagong in Bangladesh. The prices moved down by USD 10-15/MT as against last week.

Scrap: Local ship cutting Scrap prices in Bangladesh slightly improve and registered at around BDT 37,500-37,800/MT (USD 446-450) ex-works, Chittagong.

Current Prices (BDT), Ex-work Dhaka, inclusive of taxes
Particular 28-Feb’19 21-Feb’19
Billet (Ex-Dhaka)  50,500-51,000  50,000-51,000
Rebar (Medium Mills)  59,500-60,000  59,000-59,500

Source: SteelMint Research

 

Daily Update: Indian Semis Offers Incline

Indian steel prices continued rally on the wake of improved domestic demand and prices surge by INR 100-500/MT, day on day.

The Billet manufacturers in Eastern India – Durgapur reported boost demand from the re-rollers in Northern India – Punjab & Bhiwadi. Also, the rolling mills in Central & Western India stated, none selling pressure as demand soar from the local buyers.

On day trade activities, domestic Rebar & Billet prices increase by INR 200-500/MT (USD 3-7), meanwhile sponge iron prices rise by INR 100-400/MT (upto USD 6) in major markets.

SteelMint’s latest price assessment for induction furnaces billet in Indian market stood at INR 32,200-35,500/MT (USD 454-502) ex-plant.

Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 20,000-21,300/MT (USD 282-301); prices are ex-plant & excluding GST.

Rupee & BSE Sensex

On 28th February 2019 (Thursday) INR to USD exchange rate stood at INR 70.83.

ICEX (Indian Commodity Exchange Ltd) Mar’19 contract for STEELLONG today open at INR 34,260/MT & last traded (IST 18:15) at INR 34,470/MT.

BSE Sensex closed at 35,867(-37) on Thursday, as against last day (Wednesday) at 35,905(-68).

NSE Nifty50 index was closed today at 10,792(-14).

Raw Materials

Odisha Mining Corporation (OMC) – a state-owned miner is to conduct next e-auction for 580,000 MT iron ore fines on 07th Mar’19.

According to the latest assessment of Coking coal, spot prices of the Premium HCC are reported at around USD 212.25/MT FoB Australia & USD 223.75/MT CNF India.

Semi Finished

 SAIL’s Rourkela Steel Plant tender held yesterday (27th Feb’19) to sell about 15,000 MT steel grade pig iron & had received weak response. The base price for the tender was quoted by RSP at INR 27400/MT and near about 90% (13,500-14,000 MT) material remained unsold.

Vizag Steel- a leading state-owned Pig iron producer and exporter, has issued an export tender of 25,000 MT basic grade steel making Pig iron for any country other than Nepal. This tender is due on 4 Mar’19.

— Raipur, Central India based Integrated plants offers increased by INR 200-300/MT, offering Sponge P-DRI at INR 19,900-20,100/MT & Sponge DR CLO grade at INR 22,300-22,500/MT ex-plant.

 In West Bengal – Durgapur, big manufacturers have increased sponge prices by INR 200/MT D-o-D; offering P-DRI at INR 18,800-18,900/MT.

Odisha based medium size sponge manufacturers offered FeM 80 C-DRI (70:30 mix material) at INR 20,300-20,500/MT ex-plant & excluding GST.

BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 19,900-20,000/MT ex-Bellary, an official reported.

— BIOP Steels in South India has kept offers unaltered; offering FeM 80 & 82 C-DRI lumps at INR 20,200/MT & 20,600/MT ex-plant, Karnataka; an official reported.

Wire Rod & Pipe

Tata Metaliks based in Khargapur, eastern India in recent board meeting has announced to two-fold increase in its DI pipe production capacity from 2 lakh tone p.a. to 4 lakh tone p.a.

Raipur (Central India) & Mandi Gobindgarh (North India) based pipe manufacturers kept offers at firm level, offering ERW pipe at around INR 38,300/MT & INR 41,000/MT; prices are ex-plant & excluding GST.

Raipur based wire rod manufacturers increased offers by INR 400/MT and trade discount through the manufacturers/suppliers is around INR 800-1,000/MT. The offers for 5.5 mm wire rod is hovering at INR 39,700/MT ex-Raipur & INR 37,000-37,400/MT ex-Durgapur.

— Hyderabad (South India) based manufacturer Hari Om Pipe Industries Ltd has offered ERW Pipe at around INR 40,400/MT ex-plant. (basic & excluding GST).

Rebar (12 mm)

Raipur based – SPEED TMT offering at INR 36,600/MT (Up by INR 300/MT).

Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) TMT unchanged their offering at INR 38,800/MT.

South region based – VRKP Steel Industry Pvt Ltd – (VRKP TMT) offering at INR 40,100/MT (Up by INR 300/MT).

Chennai based ARS Steel (ARS 500 D) unchanged their offering at INR 41,300/MT.

Note – Prices mentioned above are ex-work, excluding GST & changes are placed on day basis.

Reference prices as on 28th February 2019

Particular/Delivery Size, Grade, Origin Prices Min Max Change 1W 1M
Scrap Ex-Alang HMS(80:20) 26,300 26,200 26,400 + 200 26,000 25,600
Ex-Mumbai HMS(80:20) 25,300 25,200 25,500 + 100 25,500 25,100
Ex-Chennai HMS(80:20) 25,300 25,100 25,500 + 200 25,100 24,400
C-DRI Ex-Durgapur Mix, FeM 78%, +/-1 20,000 19,900 20,100 + 200 20,200 20,300
Ex-Rourkela Mix, FeM 80%, +/-1 20,400 20,300 20,500 + 300 20,600 19,200
Ex-Raipur Mix, FeM 80%, +/-1 21,300 21,200 21,400 + 300 21,400 20,100
Ex-Bellary Lumps, FeM 80%, +/-1 20,300 20,200 20,400 + 100 20,700 19,300
P-DRI Ex-Durgapur Lumps, FeM 78%, +/-1 18,800 18,700 18,900 + 200 18,900 19,200
Ex-Raipur Lumps, FeM 80%, +/-1 20,000 19,900 20,100 + 300 20,400 18,800
Ex-Bellary Lumps, FeM 80%, +/-1 20,000 19,900 20,100 + 100 20,300 18,700
Ex-Hyderabad Lumps, FeM 80%, +/-1 20,500 20,400 20,600   0 20,800 19,300
Ingot Ex-Mandi Gobindgarh 3.5 x 4.5 Inch, IS 2830 35,000 34,900 35,100 + 450 35,200 33,600
Ex-Durgapur 3.5 x 4.5 Inch, IS 2830 31,800 31,700 31,900 + 500 31,800 31,000
Ex-Rourkela 3.5 x 4.5 Inch, IS 2830 31,700 31,600 31,800 + 400 31,800 30,200
Ex-Raipur 3.5 x 4.5 Inch, IS 2830 32,700 32,600 32,800 + 400 32,450 30,600
Ex-Mumbai 3.5 x 4.5 Inch, IS 2830 35,200 35,100 35,300 + 300 35,800 33,300
Billet Ex-Mandi Gobindgarh 100×100 mm, IS 2831 35,400 35,300 35,500 + 400 35,900 34,000
Ex-Durgapur 100×100 mm, IS 2831 32,300 32,200 32,400 + 500 32,200 31,500
Ex-Rourkela 100×100 mm, IS 2831 32,200 32,100 32,300 + 400 32,500 30,800
Ex-Raipur 100×100 mm, IS 2831 33,500 33,400 33,600 + 500 33,400 31,600
Ex-Ahmedabad 100×100 mm, IS 2831 35,300 35,200 35,400 + 250 35,450 32,900
Ex-Mumbai 100×100 mm, IS 2831 35,450 35,400 35,500 + 350 36,100 33,500
Ex-Chennai 100×100 mm, IS 2831 34,150 34,100 34,200 – 50 34,500 32,500
Ex-Hyderabad 100×100 mm, IS 2831 34,500 34,400 34,600 + 500 34,300 32,000
TMT Ex-Delhi/NCR 12-25 MM, IS 1786- 500 Fe 37,900 37,800 38,100 + 300 38,300 36,800
Ex-Durgapur 12-25 MM, IS 1786- 500 Fe 36,800 36,600 37,000 + 500 37,300 36,000
Ex-Raipur 12-25 MM, IS 1786- 500 Fe 36,300 36,100 36,500 + 200 36,600 34,600
Ex-Mumbai 12-25 MM, IS 1786- 500 Fe 38,300 38,200 38,700   0 39,100 36,800
Ex-Chennai 12-25 MM, IS 1786- 500 Fe 38,500 38,400 38,800   0 39,000 36,800
Ex-Hyderabad 12-25 MM, IS 1786- 500 Fe 37,500 37,300 37,700   0 37,800 36,000
Wire Rod Ex-Durgapur Wire Rod(5.5 MM) 37,300 37,100 37,500 + 300 37,300 36,400
Ex-Raipur Wire Rod(5.5 MM) 39,700 38,700 39,700 + 400 40,000 37,500

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

 

India: Vizag Steel Issues 25,000 MT Pig Iron Export Tender

Vizag Steel- a leading state-owned Pig iron producer and exporter, has issued an export tender of 25,000 MT basic grade steel making Pig iron for any country other than Nepal. This tender is due on 4 Mar’19. As per the delivery schedule, the last date of shipment shall be 31 Mar’19. The offer given by the bidder will remain valid till 11 Mar’19.

Specifications:

Carbon: 3.5-4.8 %
Manganese: 0.50% max
Silicon: 1.5% max
Phosphorus: 0.12% max
Sulphur: 0.05% max

The bidders are requested to kindly consider the port of loading as ‘Gangavaram port (GPL)’ only.

For contact details and other information view TENDER SECTION.

The company had issued an export tender of 25,000 MT basic grade steel making Pig iron for any country other than Nepal. The tender was due on 13 Feb’19 with offer validity till 20 Feb’19. As per the delivery schedule, the last date of the delivery period shall be 31 Mar’19. As per market sources report to SteelMint, the company canceled the tender amid lower bids received than the company’s expectations. As per sources, the company received bids received around USD 340/MT, FOB India.

 

India: TATA Metaliks Plans to Double Pipe Production Capacity

Tata Metaliks based in Khargapur, eastern India in recent board meeting has announced to two-fold increase in its DI pipe production capacity.

At present the company has hot metal installed capacity of about 5 lakh tone p.a., in which the production of DI pipe is about 2 lakh tone p.a. and about 3 lakh tone hot metal convert in to pig iron. Presently, DI pipes product range is from 80 mm to 800 mm diameter.

However in recent board meeting held on 27th Feb’19, the Board of Directors of the company considered and approved capacity expansion of DI Pipe unit from 2 lakh tone p.a. to 4 lakh tone p.a. along with augmentation of the Mini Blast Furnace capacity and installation of a new 15 MW Power Plant. With this expansion, the product mix of DI Pipes would be enhanced up to 1200 mm diameter pipe.

For this expansion the company plans to invest about Rs 555 crores and targeted to compete it by FY 2022.

In the current installed capacity of 5 lakh tone p.a. of hot metal the company has reported production utilisation of 100% for hot metal and 110% on pipe productions.