Monthly Archives: March 2019

Spain Steel Import Statistics – Jan’19

Spain Iron Ore imports plunge by 20% M-o-M in Jan’19- Nation’s iron ore imports recorded at 0.39 MnT in Jan’19, plunged by 20% as compared to 0.49 MnT in Dec’18.

On yearly basis, imports significantly move down by 11% in Jan’19 as against 0.44 MnT in Jan’18.

Canada stood as the largest iron ore exporter to Spain at 0.22 MnT followed by Brazil at 0.17 MnT in Jan’19 period.

Spain Finished Long steel up by 14% M-o-M in Jan’19- Nation’s long steel imports in Jan’19 stood at 0.08 MnT, increased by 14% as compared to 0.07 MnT in Dec’18.

On yearly premises imports plunged by 25% in Jan’19 as compared to 0.10 MnT in Jan’18.

Major exporting nations of Spain were Portugal at 0.04 MnT, while Italy and Turkey exported 0.01 MnT in Jan’19.

Spain Flat Steel import move down by 20% in Jan’19- Nation’s flat steel imports stood at 0.59 MnT in Jan’19, significantly dropped by 20% in comparison to 0.49 MnT in Dec’18.

On yearly basis imports fell by 9% in Jan’19 as compared to 0.65 MnT in Jan’18.

Major flat steel exporting countries in Jan’19 included France at 0.11 MnT, Turkey 0.10 MnT, Germany 0.07 MnT and Italy at 0.05 MnT.

Following this other exporting nation’s like Taiwan, China, Portugal, Netherlands and others also exported flat steel products to Spain in smaller quantities in Jan’19

Spain Ferrous Scrap imports down by 9% M-o-M in Jan’19- Nation’s imports in Jan’19 fell by 9% in Jan’19 to 0.30 MnT in comparison to 0.33 MnT in Dec’18.

Whereas on yearly basis the imports registered a significant surge by 20% in Jan’19 against 0.25 MnT in the same month of previous year.

Major exporting nations of ferrous scraps to Spain include France at 0.17 United Kingdom 0.05 MnT, Portugal 0.02,followed by Luxembourg,Germany and Russia in Jan’19.

Spain Import January’19

Commodity Sub Commodity Jan’19 Dec18 M-o-M
(%Change)
Jan’18

Y-o-Y
(%
Change)

Finish Flat HRC/Plate     221,688  188,263 17.8     268,348 -17.4
Galvanised Steel     153,030 146,423 4.5     149,072 2.7
Electrical Steel        99,805 68,071 46.6     118,013 -15.4
CRC        60,694 39,002 55.6        52,184 16.3
Pipes and Tubes        45,860 38,598 18.8        52,527 -12.7
Others        10,937 7,502 45.8        13,204 -17.2
Total Finish Flat 592,014 487,858 21.3 653,348 -9.4
Iron Ore Fines/Lumps     197,552  321,907 -38.6     330,248 -40.2
Pellet/Concentrate     192,013 173,116 10.9     112,325 70.9
Total Iron Ore 389,565 495,023 -21.3 442,573 -12.0
Total Ferrous Scrap 304,065 331,753 -8.3 247,679 22.8
Finish Long Rebar        61,300 57,384 6.8   81,210 -24.5
Structure        13,450   11,266 19.4 15,239 -11.7
Wire Rod 7,408   7,459 -0.7 9,488 -21.9
Total Finish Long 82,158 76,108 7.9 105,937 -22.4

Quantity in MT
Source: SteelMint Research

 

Global Ferrous Scrap Market Overview – Week 13, 2019

This week observed volatile sentiments in global scrap markets following USD exchange rates. Turkish scrap prices showed softening in more cargoes booked from Baltic for remaining April shipments. Japan’s Tokyo Steel lowered scrap prices at Utsunomiya works in the Kanto region. South Korean Hyundai Steel turned active for Japanese scrap observing bulk volume getting booked at reduced prices ahead of Golden Week holidays in Japan. Chinese scrap prices showed on weakening finished steel market sentiments. South Asian markets in Pakistan and Bangladesh observed pick up in activities despite high offers while the Indian market remained slow amid financial year closing and ahead of the election.

Turkey scrap importers book more cargoes at corrected prices – Turkey based steel mills continued buying imported scrap at corrected prices. However, volatile currency and political instability keep importers hesitant. According to SteelMint’s price assessment, US origin HMS (80:20) scrap stands at USD 321-322/MT, CFR Turkey. While HMS 1&2 (80:20) of Europe origin stands at around USD 315-316/MT, CFR.

In a recent deal, Baltic supplier sold a cargo comprising 26,000 MT of HMS 1&2 (80:20) at USD 319/MT and 4,000 MT Bonus at USD 329/MT, CFR Turkey for second half April shipment. Now steel mills target lower offers of USD 310-315/MT, CFR for HMS 1&2 (80:20).

Japan’s Tokyo Steel cuts scrap purchase price at Utsunomiya – Japan’s leading EAF steel mini-mill, Tokyo Steel lowered domestic scrap purchase price by JPY 500/MT (USD 4.5) at Utsunomiya plant in the Kanto region, the company pays JPY 34,500/MT (USD 309) for H2 scrap delivered to Utsunomiya plant while JPY 35,000/MT at Tahara in the central area and Kyushu in western Japan. Difficulties in procurement and delivery of steel scrap and finished steel products during Golden week holidays along with labour shortage are deepening worries of steelmakers in the market.

South Korean Hyundai Steel resumes bids for Japanese scrap, books massive volume – South Korean leading steelmaker Hyundai Steel resumed open bids for Japanese scrap after almost 3 months’ period. It presented bids for H2 at JPY 34,000/MT, (USD 308) FoB Japan. Bids for Shredded scrap stand at JPY 38,000/MT (USD 344) and Shindachi Daichibara at JPY 39,000/MT, FoB Japan. According to SteelDaily’s report, the company has booked 100,000 MT Japanese scrap out of which 60,000 MT is H2 and H1 scrap while it booked a Russian bulk cargo comprising 50,000 MT at USD 341/MT, CFR South Korea.

China’s Shagang steel lowers scrap purchase price by USD 6/MT – Eastern China’s largest private ferrous scrap consumer and EAF steelmaker – Shagang Jiangsu Steel group lowered steel scrap purchase prices for all grades by RMB 40/MT (USD 6) to RMB 2,580/MT (USD 383) inclusive of 16% VAT for HMS (6-10 mm thickness) delivered to headquarter works situated in Zhangjiagang. A trade source shared that the downward pressure on steel scrap price in China lies in its relatively higher price previously and the price of finished steel which is under pressure presently. Scrap prices might have lowered amid mills’ willingness to demand is lower and due to cost control.

Indian imported scrap market observes lackluster activities on upcoming election – India’s imported scrap activities remained limited on poor cash flow amid financial year closing and the upcoming election. Domestic steel sentiments remain volatile on fluctuating INR against USD. Offers edged up marginally against last week on tight supply situation and pickup in demand from other subcontinent markets. SteelMint’s assessment for containerized Shredded stands in the range USD 335-340/MT, CFR Nhava Sheva. HMS 1 from Dubai traded at around USD 328-330/MT, CFR while West African HMS 1&2 prices climbed to USD 310/MT, CFR Mundra and 315/MT, CFR Chennai on improved interest from Bangladesh. HMS 1 from the UK was being offered at around USD 320-322/MT, CFR.

Pakistan imported scrap prices up on improved local steel prices – Sources shared that Pakistan scrap importers have turned active on improving local steel prices and less inventories in hand ahead of Ramadan slowdown. A trading company confirmed trade of 5,000 MT Shredded scrap from UK & Europe in containers at USD 340-342/MT, CFR Port Qasim. SteelMint’s price assessment for Shredded scrap stands at around USD 340/MT, CFR Qasim. Asking rates for Shredded from UK and Europe reported in the range USD 340-342/MT, CFR.HMS 1 from UAE is assessed at USD 330-335/MT, CFR and Bala billet prices were reported last at around PKR 80,000-80,500/MT (USD 549-553), ex-work inclusive of local taxes.

Bangladesh imported scrap prices edge up after bulk bookings – After witnessing two bulk bookings Bangladesh observed pick up in buying interest in the market however, local sentiments remained almost the same since a past couple of weeks. Limited bookings heard as finish steel demand remained skeptical on starting of Rainy season SteelMint’s price assessment for containerized Shredded scrap stands at USD 350-355/MT, CFR Chittagong. Containerized HMS 1 from Chile and Brazil is being reported at around USD 335-340/MT, CFR. Shipyard scrap prices assessed at BDT 37,500-38,000/MT (USD 445-451) ex-yard.

 

28,260 MT Bulk Ferrous Scrap Import Vessel to Arrive at Indian Port

After a gap of almost 2-months, a bulk scrap import vessel is expected to arrive at an Indian port. As per vessel line up data maintained with SteelMint, a bulk scrap import vessel named ‘Orhan’ is expected to arrive from the USA at Kandla port on 01st Apr’19. According to market participants report to SteelMint, the vessel has been booked by Gujarat based steel mills at around USD 325/MT, CFR.

Also, another vessel of 30,000 MT is expected to arrive by the end of Apr’19.

Prior to this, India imported a bulk scrap import vessel of 50,000 MT in Feb’19.

India imported 4.72 MnT ferrous scrap in FY19 (till Jan’19). India imported 4.53 MnT ferrous scrap in FY18 and major sources of imports were UAE, USA and UK.

Current market overview – Indian imported scrap market observes lackluster activities on upcoming election – India’s Imported scrap activities remained limited on limited cash flow amid financial year closing and the upcoming election. Domestic steel sentiments remain volatile on fluctuating INR against USD.

Scrap offers edged up marginally W-o-W on tight supply situation and pick up in demand from subcontinent markets. SteelMint’s assessment for containerized Shredded stands in the range USD 335-340/MT, CFR Nhava Sheva. HMS 1 from Dubai traded at around USD 328-330/MT, CFR while from UK was being offered at around USD 320-322/MT, CFR. West African HMS 1&2 prices have moved up to USD 310/MT, CFR Mundra and 315/MT, CFR Chennai on improved interest from Bangladesh.

 

Indian Steel Market Weekly Snapshot

During the Week-13 (25-30th Mar’19), Indian spot steel trades remained weak as participants were engaged to settle their accounts amid closing of fiscal year. Inline with supply, it was more or less average, this has resulted slight fall in prices.

As per SteelMint’s assessment, in these days the prices of Semis products slump by INR 100-600/MT (upto USD 9). Inline Finished Long steel products registered price fall upto INR 500/MT through the mid sized mills.

Meanwhile Flat steel prices also declined in the range of INR 500-1,000/MT (USD 7-15) through the traders end.

Iron ore and Pellets

Odisha based major merchant iron ore miners are heard to have increased discounts on bulk quantity purchase and offers at around INR 1,800/MT which was earlier traded at INR 2,000/MT; (ex-mines, including Royalty, DMF & NMET) a month back. OMC reduced iron ore base prices by INR 200/MT for upcoming iron ore e-auction on 04 Apr’19.

Raipur pellet offers continue to remain under pressure amid competitive offers from Raigarh and Bilaspur. Raipur (Central India) based pellet makers keep offers firm to INR 6,300/MT. Southern India (Bellary) pellet offers for Fe 63% grade decline towards the end of this week to INR 6,800-7,000/MT (basic) against last assessment at INR 6,900-7,000/MT.

According to the market participants, seaborne pellet demand in China continued to remain slow, however, few deals of port stocks were reported at Chinese major ports at RMB 920-940/MT. No fresh seaborne pellet export deals from India were reported this week, last deal heard a week back for regular grade pellets Fe 64/63% grade with 3% alumina at USD 114-115/MT, CFR China.

Coal

Seaborne metallurgical coal prices have been edging downwards over the past two weeks with no trades taking place, as most Chinese buyers refrained from actively procuring imported cargoes, on expectations of a weakening market ahead. Market sources indicated that prices for various types of domestic coal in the Chinese market would soften. Nevertheless, seaborne coking coal prices are competitive at present, compared to domestic coking coal of similar specifications.

In China, a typical demand pick-up post-Lunar New Year has not materialised yet this year, as China appeared to be in wait-and-see mode, which has kept spot prices relatively stabilized so far this year in contrast to last year’s sharp uptick. Hence, coking coal supply levels remain sufficient to outweigh the limited demand appetite, which has exerted a lot of pressure on May and June forward-loading cargoes.

Latest offers for the Australian Premium HCC grade are assessed at around USD 218.95/MT & for the 64 Mid Vol HCC grade are assessed at around USD 187.20/MT, CNF India.

Scrap

Indian imported scrap market activities remained limited on poor cash flow amid financial year closing and the upcoming election. Domestic trade sentiments remain volatile on fluctuating INR against USD. Offers edged up marginally against last week on tight supply situation and pick up in demand from other subcontinent markets.

SteelMint’s assessment for containerized Shredded stands in the range USD 335-340/MT, CFR Nhava Sheva. HMS 1 from Dubai traded at around USD 328-330/MT, CFR while West African HMS 1&2 prices climbed to USD 310/MT, CFR Mundra and USD 315/MT, CFR Chennai on improved interest from Bangladesh. HMS 1 from the UK was being offered at around USD 320-322/MT, CFR

Semi Finished

On weekly basis Semi finished offers declined slightly, domestic Billet offers fall by INR 100-600/MT & Sponge iron by INR 100-200/MT.

Indian induction grade billet (100*100 mm size) export offers to Nepal are reported at USD 445-450/MT (ex-mill at West Bengal), equivalent to USD 475-480/MT CFR Nepal (Raxaul border).

Indian Sponge iron export offers firm & hovering at USD 330/MT CNF Chittagong, Bangladesh (78-80 FeM, lumps grade).

SAIL’s Rourkela Steel Plant tender held today (27th Mar’19) to sell about 5,900 MT steel grade pig iron, had received moderate response. The base price for the tender was quoted by RSP at INR 26,450/MT and near about 38% (2,200-2,300 MT) material sold.

Jindal Steel and Power (JSPL) in press release on 25th Mar’18 reported that, the producer has re-started 1.8 MnT (per annum) Sponge iron plant at Angul steel complex, Odisha.

Jindal Steel is offering Pig iron (steel grade) at INR 27,500-27,600/MT ex-Raigarh & Panther shots (Granulated Pig iron) at INR 25,500/MT ex-Angul, Odisha.

MMTC cancels Pig iron export tender of 30,000 MT owing to high expectations, whose due date for submission of bids was till 26 Mar’19. As per sources the bids was heard at around USD 360/MT, FoB India.

SteelMint’s Pig iron export price assessment stood at USD 359-361/MT FoB India, USD 339-341/MT FoB Brazil & USD 349-351/MT FoB Black sea. Offers rise by USD 5/MT W-o-W.

Finish Long

Indian Finish long steel market seems to have volatile amid uncertain direction due to fiscal year closing & election season in the country.

As per assessment, the price range were reduced by INR 200-400/MT towards the beginning of week, however some improved sentiments noticed in specified locations and inventory levels slightly down by the end of week.

Although industry participants are still curious for coming week for the market direction, whether the positive trends will maintain for long term or short term.

Current trade reference rebar prices (12-25 mm) assessed at INR 37,400-37,700/MT Ex-Jalna & INR 35,800-36,100/MT Ex- Raipur; basic & excluding GST.

— In the week, Central region, Raipur based heavy structure manufacturers have maintained trade discount to around INR 400-600/MT and current trade reference prices at INR 39,200-39,600/MT (200 Angle) ex-work.

The large mills are offering 12 mm rebar at around INR 41,000-41,500/MT in South region & Wire rod stands at close to INR 42,000/MT Ex-Chennai.

Flat Steel

This week domestic HRC prices corrected by INR 500-1,000/MT in traders market. Upcoming general assembly elections, end of fiscal year combined with cheaper imports have kept Indian domestic HRC prices under pressure.

Current trade reference prices in traders market for HRC (IS2062) 2.5 mm-8 mm is around INR 42,000/MT ex-Mumbai, INR 41,800/MT ex-Delhi & INR 44,000/MT ex-Chennai. The prices for CRC (IS513) 0.9mm is hovering at INR 47,000/MT ex-Mumbai, INR 45,800-48,200/MT ex-Delhi & INR 50,500/MT ex-Chennai. The prices mentioned above are basic, excluding GST@18% on cash payment basis.

Arrival of HRC shipments from Iran have also kept domestic HRC prices under pressure. These shipments were booked in the month of Jan’19 at USD 450-455/MT CFR basis. Thus landed cost of imports are cheaper than prevailing domestic prices.

Reference Prices as on 30 March 2019 (Week 13)

Products Regions Taxes Prices in INR/MT W-o-W
Pellet Fe 63%, 6-20 mm Ex-Durgapur,Delivered GST at 5% Extra 5,700 0
Iron ore 6-40 mm, Fe 65% Chhattisgarh Excluding Royalty, DMF & NMET. GST @ 5% extra 3,000 0
5-18mm, Fe 63% Odisha Ex-mines, Incld Royalty, DMF & NMET, GST extra 4,200 -200
Fines Fe 63% Odisha Ex-mines, Incld Royalty, DMF & NMET, GST extra 1,850 -150
Coking Coal, Premium HCC CNF India Prices in USD 219 -6
Scrap HMS (80:20) Ex-Mumbai GST at 18% Extra 24,900 0
C-DRI 80 FeM Ex-Raipur GST at 18% Extra 19,800 -200
P-DRI 80 FeM Ex-Raipur GST at 18% Extra 18,600 -200
Pig iron Steel grade Ex-Raipur GST at 18% Extra 27,500 0
Billet 125*125 MM Ex-Raipur GST at 18% Extra 31,500 -250
Rebar (12-25mm) Ex-Raipur (Medium Scale) GST at 18% Extra 35,900 +200
Wire Rod (5.5 mm) Ex-Raipur GST at 18% Extra 38,100 +100
Structure ( 40 Angle) Ex-Mumbai GST at 18% Extra 38,400 -300
HRC (2.5-8 mm) Ex-Mumbai GST at 18% Extra 42,000 -500
CRC (0.90mm) Ex-Mumbai GST at 18% Extra 47,000 0
HR Plate(5-10mm) Ex-Mumbai GST at 18% Extra 42,000 -500

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

Indian Export Reference Prices as on 30th March’19

Commodity Particular/Delivery Size and Grade Prices 1W 1M
Pellet FOB India 6-20 mm, Fe 64% 104 104 111
Scrap CNF India HMS(80:20), Europe 315 310 310
Billet FOB India 150*150, IS 2830 450 450 453
Sponge Iron CNF Bangladesh Lumps, FeM 80, India 330 327 333
Pig Iron FOB India Steel Grade 360 356 358
HRC FOB India 2.5-8mm, IS 2062 545 548 533

Prices in USD/MT
Source: SteelMint Research

 

Chinese Steel Market Highlights – Week 13, 2019

This week Chinese steel prices reported decline over weak trading in domestic market and fluctuating futures. Country’s rebar and HRC export offers remained stable this week. Coking coal offers moved down this week over limited trades from China. However iron ore prices recorded increase towards the weekend.

Chinese mills announced increase in ferro chrome tender price for Apr’19.

Coking coal prices moved down this week- Seaborne coking coal prices fell since last two weeks as most of buyers in China refrained from actively procuring imported cargoes over the expectations of a weakening market sentiments ahead.

Thus coking coal supply levels remain sufficient to outweigh the limited demand appetite, which has exerted a lot of pressure on May and June forward-loading cargoes.

Thus, latest offers for the Premium HCC grade are assessed at around USD 207/MT FOB Australia which was reported USD 212/MT FoB basis last week.

Chinese spot iron ore prices rise towards weekend – Chinese spot iron ore prices opened up this week at USD 84.95/MT,CFR China and increased to USD 87.05/MT towards the weekend amidst drop in Vale (world’s largest iron ore miner) sales estimate for 2019.

Vale decreased its sales estimate for 2019 between 307 MnT and 332 MnT.This is lower by 75 MnT against its previous estimated forecast.

Iron ore inventory at major Chinese ports have decreased to 147.6 MnT this week as against 148.6 MnT a week ago.

Spot lump premium witnessed drop to USD 0.3285/MT,CFR China as against USD 0.3465/DMTU a week ago amid availability of cheaper substitutes since steel mills were replacing lumps with pellets. Also, the expectation of end to sintering cuts has put pressure on lumps.

Spot pellet premium up by USD 1.25/MT this week -: Spot pellet premium for Fe 65% grade pellets have increased to USD 33.55/MT, CFR China this week, against USD 32.30/DMT a week before.The increase is attributed to rise in pellet preference in China.However, pellet inventory at major Chinese port increased to 5.25 MnT this week compared to 5.2 MnT last week.

Chinese domestic billet prices fall – Domestic spot billet prices in China’s Tangshan closed this week at RMB 3,450/MT (ex-works, including VAT) against last week’s assessment of USD 3,490/MT (ex-works, including VAT).

Chinese HRC export prices remain stable this week – Nation’s HRC export offers remained stable this week as the prices remained firm in domestic market.

Currently nation’s HRC export offers is assessed at around USD 530-535/MT FoB basis. Last week the prices continued to remain at similar levels.

However buyers in Vietnam are bidding on lower side owing to soft demand in downstream products.

On weekly basis domestic prices in eastern China (Shanghai) decline by RMB 20/MT and stood at RMB 3,850-3,860/MT.

Chinese rebar export offers remained firm this week- This week rebar export offers remained unchanged over weak buying.

Currently,nation’s rebar export offers are at USD 530/MT FoB China. Last week also the offers remained at similar levels.

Meanwhile domestic rebar prices decline by RMB 60/MT on W-o-W basis and is assessed at RMB 3,830-3,870/MT in (Eastern China).

Last week the prices stood at RMB 3,890-3,920/MT inclusive of VAT taxes.Thus increase in rebar output lead to decline in prices in domestic market.

Chinese Steel Market Highlights – Week 13, 2019

Particulars Currency Current 
Price per MT
1 W 1 M
Spot Iron Ore Fines Fe 62%,

CNF China

USD 87 87 87
Met Coke, 64%, FoB China USD 328 347 358
Premium HCC,CNF China USD 202 210 211
Billet,FoB China USD 480 485 480
Domestic Spot Billet Prices,
(ex-Tangshan)
RMB 3,450 3,490
Domestic Rebar Prices
(ex-warehouse Eastern China)
RMB 3,830-
3,870
3,890-
3,920
Rebar, FoB China USD 530 530 520
Wire Rod.FoB China USD 530-540 535 530
Domestic HRC Prices
(ex-warehouse)
Eastern China
RMB 3,850-
3,860
3,870-
3,890
HRC, FoB China USD 530-535 537 525
CRC,FoB China USD 565-575 570 548
Plate,FoB China USD 545-550 550 543

Source – SteelMint Research

 

India: Odisha Iron Ore Production Up 12% Y-o-Y During Apr-Feb’19

Odisha – India’s largest iron ore producing state has recorded Feb’19 production at 10.03 MnT, down 5% M-o-M. During FY’19 (Apr-Feb) Odisha iron ore production has increased by 12% to 98.6 MnT as against 88.05 MnT in the same period last fiscal FY’18.

On yearly basis, Odisha iron ore production moved down sharply by 38% as against 7.28 MnT in Feb’18. According to the provisional data of Odisha Govt. maintained by SteelMint. The figures include the type of material – fines, lump, and concentrate.

Odisha based major merchant iron ore miner’s decreased offers on bulk quantity purchase of fines in Jan19. Later in Feb’19 miners raised offers twice after Vale incident in Brazil following hike in the global and domestic prices for the month. Besides, many merchant miners in Odisha have utilized their EC limits for the year and are not seen actively offering material in the market.

Rungta Mines – India’s largest private merchant miner produced 2.4 MnT iron ore from its mines in Odisha in Feb’19, up 5% M-o-M as against 2.29 MnT in Jan’19.

Tata iron ore production stood at 1.09 MnT (down 10%) and SAIL at 0.9 MnT (up 23% on monthly basis).

Iron ore production of state-owned miner- OMC decreased by 13% at 1.05 MnT for the month as against 1.2 MnT in Jan’19.

Odisha Mine-wise Iron Ore Production:

Mines Feb’19 Jan’19
Rungta Mines 2.4 2.29
Tata 1.09 1.21
O.M.C. 1.05 1.2
SAIL 0.9 0.73
Essel Mining & Industries 0.9 0.97
Seerajudin 0.81 0.85
R.P.Sao 0.5 0.49
KJS Ahluwalia 0.25 0.26
Indrani Patnaik 0.22 0.22
K.N.Ram 0.11 0.34
A.M.T.C. 0.09 0.31
Others 1.71 1.73
Grand Total 10.03 10.6

Source: Govt. of Odisha
Provisional data
Quantity in MnT

 

India: Chrome Ore Production Falls Amid Low Demand

Odisha contributes almost entirely towards chrome ore production in India. Chrome Ore Production in Feb’19 was noted to be 384,308MT. It is about 36% lower as compared to the previous month viz., Jan’19.

Production level by Captive miners were substantially down by 22% in Feb’19 as compared to previous month. Balasore Alloys contributed the highest amount in the production of Chrome Ore, amongst the Captive mines in India. However, the production was marginally low by 3% on M-o-M basis. Meanwhile Ferro Alloys Corporation Limited(FACOR) and Infrastructure Development Company Limited (IDCOL) decreased their production by significant levels. Production by FACOR were down by 33% and IDCOL by 53% when compared to Jan’19.

Production levels by Merchant miners were substantially low by 37% in Feb’19 as compared to the previous month. TATA Steel and OMC in together contributed to 77% of the total Chrome Ore Production by India in Feb’19. production for TATA Steel stood at 193,299MT which was less than Jan’19 by 12%. TATA Steel however remained the largest miner in Feb’19. Odisha Mining Corporation (OMC) remained the second largest merchant Miner with 101,083MT production in Feb’19. Meanwhile production cuts in IMFA and B.C. Mohanty were observed by 3% and 40% respectively.

Such decline in Production levels were due to low demand. As the current Chrome Ore inventories sit at high levels and there are low demand in the market and therefore, to avoid the oversupply situation, the productions were maintained at lower levels.

A total of 36% decline was noticed in Feb’19 M-o-M. Meanwhile, the production were also low in Feb’19 as compared to previous year by 30%.

 Odisha Chrome Ore Production
 Mines  February’19  January’19
 Captive
 Balasore Alloys  22,578  23,359
 FACOR  12,226  18,367
 IDCOL  3,437  7,383
 Sub Total (A)  38,241  49,109

 Other Than Captive

 TATA Steel  193,299  218,559
 O.M.C.  101,083  225,665
 IMFA  42,678  43,915
 B.C. Mohanty & Sons  9,007  15,024
 Saruabil Chromite Mines   –  49,065
 Sub Total (B)  346,067  552,228
 Grand Total  384,308  601,338

All Quantity in MT
Source: Govt. of Odisha

 
Japan Monthly Coal Imports

Japan: Coal Imports Down 11% M-o-M in Feb’19

Japanese coal imports have decreased 11% on the month to 14.89 MnT in Feb’19 as against 16.79 MnT in Jan’19.

Imports also continued its decline on the yearly basis for the second successive month, as they were down 3% from 15.4 MnT in Feb’18.

The country had seen its non-coking coal sourcing falling to 8-month low in Feb’19. In fact, a grade-wise break-up of imports indicate that intake of all the major coal commodities had fallen during the month.

Japan’s intake of non-coking coal decreased 12% M-o-M to 10.22 MnT in Feb’19, as against 11.66 MnT in Jan’19.

Coking coal imports were down 13% M-o-M to 2.96 MnT in Feb’19 compared with 3.42 MnT in Jan’19, along with Anthracite coal which had dropped 31% on the month.

Imports of Met coke and Pet coke had also fallen during the month.

Grade Feb’19 Jan’19 % Change
Non Coking Coal 10.22 11.66 -12%
Coking Coal 2.96 3.42 -13%
Pet Coke 0.41 0.51 -20%
Anthracite 0.22 0.32 -31%
Met Coke 0.02 0.1 -80%
Others 1.06 0.76 39%
Grand Total 14.89 16.79 -11%

Source: Japanese customs
Quantity in MnT

Japan has imported a total of 31.68 MnT coal in total during the first two months of CY19.

Major Coal Exporters:

Australia remained the largest coal supplier to Japan, followed by Indonesia, US, Russia and Canada in Feb’19.

However, among the major exporters, only Indonesia had seen a monthly growth in coal supplies during the month.

Australian coal exports fell 13% M-o-M to 8.95 MnT in Feb’19 compared with 10.25 MnT in Jan’19, which was also 12% lower on the year from 10.22 MnT in Feb’18.

Indonesian coal exports increased 24% M-o-M to 2.74 MnT in Feb’19, which was also 37% higher on the year from 2 MnT in Feb’18.

US became the third-largest coal exporter, replacing Russia in Feb’19.

US coal exports stood 1.19 MnT in Feb’19, while Russian coal exports fell 39% M-o-M to record 0.94 MnT during the month.

Japan country-wise Coal Imports

 

China: Iron Ore Index Jumps After Vale Cuts Sales Estimate

Spot iron ore fines Fe 62% index has today jumped by almost USD 3.2/MT against yesterday and closed today at USD 87.05/MT, CNF China. Vale informed yesterday on its estimate on its iron ore sales volume for 2019 between 307 and 332 MnT. This is lower by 75 MnT against its previous estimated forecast.

Vale’s total iron ore production witnessed at 384.6 MnT (up 5% Y-o-Y) and pellet production recorded at 55.3 MnT (up 10% Y-o-Y) in CY18. The ramp-up of Tubarao I, Tubarao II pellet plant, restart at Tubarao IV & Sau luis plant in Q3CY18 resulted in increased pellet production for CY18.

Vale recorded iron ore sales at 308.99 MnT, rise of 6% on yearly basis as compared to 291.35 MnT in CY17. The iron ore sales for Q4CY18 recorded at 80.5 MnT, down 4% against 83.98 MnT a quarter ago. Pellet sales in CY’18 witnessed by the company at 56.59 MnT, up 9% as compared to 51.78 MnT in CY17.

 

How much Graphite Electrodes did China Export in 2018?

The promotion of EAFs for steel production and closure of polluting graphite electrodes plants in China in the latter half of 2017 as a part of supply-side structural changes led to a significant surge in country’s GE demand and so does its prices.

This increase in demand and prices motivated China’s electrode manufacturers to raise their GE production, increase their existing plant capacity or set up new plants leading to a steady surge in electrode supplies in China’s domestic market.

However, although the EAF steel capacities in China grew last year, the increase in GE supplies was higher resulting which manufacturers diverted their GE output in the export market.

According to customs data, China exported 287,400 tonnes of graphite electrode in 2018, up 29% YoY. The major buyers of Chinese electrodes were the U.S. (23,600 tonnes, up 51% YoY), Italy (18,200 tonnes, up 47% YoY), South Korea (16,500 tonnes, up 65% YoY) and Russia (16,000 tonnes, down 31% YoY).

Several Korean steelmakers signed long-term contracts with China graphite electrode plants. Buying sentiment that waned among Russian buyers last year, partly due to sanctions led by the U.S. government turned better this year.

China’s key GE Exporters

The two major GE exporters in China were Fangda Carbon New Materials and Jilin Carbon Imp & Exp, accounting 14% and 7% respectively in the total exports.

Fangda Carbon saw continuous growth in exporting volume since 2016. In 2017, 38,600 tonnes were exported, up 12.62%. In 2018, 40,500 tonnes went to the global market, up 4.96%, according to China’s Customs data. Total sales in 2017 were estimated at 271 million yuan, up 305.16% YoY. Last year, the plant saw increase by 130.82% in sales to 626 million yuan.

Sales volume in Jilin Carbon increased from 2016 to 2018. In 2017, Jilin Carbon exported 16,600 tonnes, up 3.92% over last year. In 2018, the plant exported 21,000 tonnes, up 26.16% YoY. Sales in 2017 and 2018 were 96 million yuan (up 246.48%) and 252 million yuan (up 163.01%) respectively.

Export surges in Jan’19 also

While the rally in GE prices continued almost for a year, the same started plunging towards the end of 2018 when the winter production cuts started.

In Jan’19, China exported 27,500 tonnes of graphite electrodes up 31% YoY or 7.85% MoM. The domestic market extended a weak scenario since last December, while the export market was relatively stable. China owns more than half of global graphite electrode capacity and is also competitive in pricing. Exporting volume from China will keep increasing in 2019.

China’s graphite electrodes output in 2018

According to provisional data of CCIA (China Carbon Industry Association) from Jan-Dec’18, the country’s graphite electrode output was 649,668 tonnes, an increase of 18% y-o-y, out of which 268,991 tonne was ultra-high power graphite electrodes, an increase of 48% against 2017.

Major UHP Grade GE Producers in China in 2018

Company UHP Production
Fangda Carbon 62,230
Jilin Carbon 40,695
Nantong Yangtze 34,824
Kaifeng Carbon 29,979
Dandong Xingxing 26,856

Quantity in Tonnes