Monthly Archives: April 2019

Bangladesh Re-Rollers Keep Rebar Offers Unchanged

Bangladesh based large & medium scale mills have kept their rebar offers unchanged this week and trade activities are supported up to certain level, SteelMint learned with the re-rollers in Dhaka.

As per sources, trade volumes are more or less in same range and response through the participants improved slightly in comparison to past week due to upcoming Ramadan festival as traders and retailers have procured material for restocking.

Material procurement has been considered in view of upcoming festival where transportation availability won’t be appropriate during the festival time and buying inquiries generally exist with tight supply.

The mid sized mills rebar prices in Dhaka, Bangladesh is hovering at BDT 59,500-60,500/MT (USD 705-717) for 500 W; unchanged on weekly basis. The prices are ex-works, including local taxes & size 8-32 mm.

Further, the large mills have rolled over rebar offers this week and offering at BDT 63,500-64,500/MT (USD 752-764), similar against last week offers. The prices are ex-works, including local taxes & size 8-32 mm.

In line domestic billet prices, the Bangladeshi mills unaltered prices and reported at around BDT 51,000-51,500/MT (USD 604-610) ex-works in Dhaka.

Sponge iron (FeM 78-80) import offers from India currently evaluated at around USD 325-330/MT, which was last week assessed at USD 330/MT; CNF Chittagong, Bangladesh.

Current Prices (BDT/MT), Ex-work Dhaka, inclusive of taxes
Particular 30-Apr’19 23-Apr’19
Billet (Ex-Dhaka)  51,000-51,500  51,000-51,500
Rebar (Medium Mills)  59,500-60,500  59,500-60,500

Source – SteelMint Research

 

Australian Coking Coal Prices Strengthen Amid Restocking Needs in China

Seaborne premium hard coking coal prices have picked up from last Friday in concurrence with an upsurge in the Chinese domestic metallurgical coal market, while the 64 mid-vol prices were largely stable over the previous week.

In China, fresh deals were seen taking place for restocking purposes by end-users ahead of the Labor Day holiday.

Nevertheless, trading sources suggested that most of the Chinese buyers are remaining on the sidelines, adding that there is no urgent requirement from any major China-based steelmaker for Australian coking coal.

Last week, however, the Chinese market saw stronger buying interest and sentiments as buyers were heard to be actively seeking for prompt cargoes of Australian low ash hard coking coal.

This was in spite of the import restrictions imposed on seaborne coking coals at various ports in China since late January, which have prolonged the customs clearance process and effectively resulted in a longer discharge time for outbound cargoes.

Meanwhile, the Chinese steelmakers have been staying cautious against imports of excess raw materials, as domestic prices continue to weaken.

PRICE ASSESSMENTS

Latest offers for the Premium HCC grade are assessed at around USD 206.25/MT FOB Australia, higher by about USD 1.80/MT above the average rate of USD 204.45/MT prevailing in the week gone by (22-26 Apr’19).

Offers for the 64 Mid Vol HCC grade are assessed at around USD 182.15/MT FOB Australia.

For Indian buyers, the above offers amount to USD 218.50/MT and USD 194.40/MT respectively on CNF India basis.

 

Daily Update: Indian Semis Offers Decline

Indian steel prices slightly fell on limited trade inquiries with less clarity in market directions whether the current price range will sustain or see major change in coming days.

The prices of Billet were volatile since couple of days, however it fell by INR 100-500/MT today in major markets. Similarly slight price reduction being noticed in Rebar & Sponge iron market by INR 100-200/MT

SteelMint’s latest price assessment for induction furnaces billet in Indian market stood at INR 31,000-34,400/MT (USD 445-494) ex-plant.

Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 18,800-19,800/MT (USD 270-285); prices are ex-plant & excluding GST.

Rupee & BSE Sensex

 On 30th April 2019 (Tuesday) INR to USD exchange rate stood at INR 69.56.

ICEX (Indian Commodity Exchange Ltd) May’19 contract for STEELLONG today open at INR 33,660/MT & last traded (IST 18:20) at INR 33,400/MT.

— BSE Sensex closed at 39,031(-35) on Tuesday, as against last day (Friday) at 39,067(+336).

NSE Nifty50 index was closed today at 11,748(-6).

Raw Materials

Odisha Mining Corporation (OMC) is to conduct next e-auction for 430,000 MT iron ore fines on 07th May’19. And the base price for material from Gandhamardan, Koira, and Daitari has remained unchanged.

Central India based Bajrang Power & Ispat concludes two pellet export deals of 50,000 MT each at USD 117/MT, CFR China for June shipments

India’s crude steel output remained largely stable at 27.33 MnT in the current quarter which was 27.4 MnT in similar quarter of previous year- WSA.

Silico Manganese prices for 60-14 grade are assessed at INR 66,500/MT Ex-Raipur and INR 66,500 – 67,000/MT Ex-Durgapur.

 Melting scrap offers in Western India- Gujarat decline by INR 300/MT in a day trade activities.

Semi Finished

Jharkhand based producers are offering steel grade pig iron at around INR 28,800/MT landed Durgapur.

As per Neo Metaliks in Durgapur small deals are taking place for steel grade pig iron at INR 28,700-28,800/MT.

Indian Sponge iron export offers slightly fell to USD 325-330/MT as against last week at USD 330/MT; CNF Chittagong, Bangladesh.

— Raipur, Central India based Integrated plants offering Sponge P-DRI at INR 18,700-18,800/MT & Sponge DR CLO grade at INR 20,600-20,800/MT ex-plant.

Govindam Sponge, an Odisha based plant offered FeM 80 sponge mix material at INR 18,900/MT & fines at INR 19,200/MT ex-plant.

— Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 19,000/MT & Billet at INR 31,000-31,100/MT ex-plant.

— East India, Odisha based manufacturer, Mahavir Ferro Alloys offered Billet at INR 31,000-31,200/MT ex-plant as per officials.

Sources reported Chandrapur (Maharashtra) based manufacturers offered Sponge P-DRI (FeM 80) at INR 18,800/MT, ex-plant & excluding GST.

— Apple Industries in Bellary (Karnataka) offered Sponge FeM 83+ P-DRI lump at INR 20,000-20,200/MT & Billet at INR 32,000/MT ex-plant.

— BIOP Steels in South India has offered FeM 80 & 82 C-DRI lumps at INR 19,100/MT &  INR 19,500/MT ex-plant, Karnataka; an official reported.

Wire Rod & Pipe

As per participants, shortage of HB Wire with the integrated plants in Raipur. Hence trade discounts on the same is less by INR 200-300/MT than prevailing in Wire rod at INR 1,000-1,100/MT. Basic prices for 5.5 mm Wire rod stood at INR 38,200/MT ex-Raipur & INR 36,700-37,500/MT ex-Durgapur.

Mandi Gobindgarh, North India based ERW pipe manufacturers offers reported at around INR 40,200/MT ex-plant & excluding GST.

 Hyderabad (South India) based manufacturer Mahalakshmi Profiles Pvt. Ltd (MPL) has offered ERW Pipe at INR 39,700/MT ex-plant. (basic & excluding GST).

Raipur, Central India based ERW pipe manufacturers offers reported at around INR 37,700-37,800/MT ex-plant & excluding GST.

Rebar (12 mm)

Rathi Steels based in North region is offering around INR 38,400/MT (ex-Delhi).

Raipur based – SPEED TMT has unchanged their offers at INR 35,500/MT.

Real Ispat (GK TMT) has unchanged their offers at INR 37,900/MT.

Raigarh based Anjani Steels Ltd. (Radhe TMT) is offering at INR 35,700/MT (down by INR 100/MT).

Gujarat based Shreeyam Power & Steel Industries Ltd. (National TMT) has unaltered their offers at INR 38,500/MT FoR.

Jalna based Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) has unchanged their offers at INR 37,500/MT.

Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) has unchanged their offers at INR 37,200/MT.

Jalna based Rajuri Steel Pvt. Ltd. (Rajuri TMT) is offering at INR 37,100/MT.

Goa based Kamdhenu TMT is offering at INR 39,000/MT.

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

Reference prices as on 30th April 2019.

Particular/Delivery Size, Grade, Origin Prices Min Max Change 1W 1M
Scrap Ex-Alang HMS(80:20) 26,600 26,500 26,700 – 300 26,800 26,400
Ex-Mumbai HMS(80:20) 25,100 24,900 25,200 + 100 24,900 25,000
Ex-Chennai HMS(80:20) 24,300 24,300 24,500   0 24,400 24,700
C-DRI Ex-Durgapur Mix, FeM 78%, +/-1 19,300 19,200 19,400   0 19,900 20,300
Ex-Rourkela Mix, FeM 80%, +/-1 18,800 18,700 18,900 – 100 18,700 19,000
Ex-Raipur Mix, FeM 80%, +/-1 19,800 19,700 19,900   0 19,600 20,000
Ex-Bellary Lumps, FeM 80%, +/-1 19,100 19,000 19,200 – 100 19,600 18,800
P-DRI Ex-Durgapur Lumps, FeM 78%, +/-1 18,100 18,000 18,200   0 18,600 19,000
Ex-Raipur Lumps, FeM 80%, +/-1 18,750 18,700 18,800   0 18,600 18,650
Ex-Bellary Lumps, FeM 80%, +/-1 18,800 18,700 18,900 – 100 19,300 18,400
Ex-Hyderabad Lumps, FeM 80%, +/-1 19,300 19,200 19,400 – 100 19,700 19,000
Ingot Ex-Mandi Gobindgarh 3.5 x 4.5 Inch, IS 2830 34,100 34,100 34,200 – 100 34,100 34,200
Ex-Durgapur 3.5 x 4.5 Inch, IS 2830 31,300 31,200 31,400 + 50 31,350 31,400
Ex-Rourkela 3.5 x 4.5 Inch, IS 2830 30,600 30,600 30,700 – 200 30,700 30,600
Ex-Raipur 3.5 x 4.5 Inch, IS 2830 30,900 30,800 31,000   0 30,900 31,300
Ex-Mumbai 3.5 x 4.5 Inch, IS 2830 33,500 33,400 33,600 + 50 33,100 33,100
Billet Ex-Mandi Gobindgarh 100×100 mm, IS 2831 34,400 34,300 34,500 – 100 34,500 34,600
Ex-Durgapur 100×100 mm, IS 2831 31,700 31,600 31,800 + 100 31,650 31,800
Ex-Rourkela 100×100 mm, IS 2831 31,000 30,900 31,100 – 100 31,000 31,000
Ex-Raipur 100×100 mm, IS 2831 31,600 31,500 31,700 – 50 31,500 31,750
Ex-Ahmedabad 100×100 mm, IS 2831 33,300 33,200 33,400   0 33,700 34,000
Ex-Mumbai 100×100 mm, IS 2831 33,700 33,600 33,800 + 50 33,300 33,300
Ex-Chennai 100×100 mm, IS 2831 31,900 31,800 32,000 – 300 33,200 32,500
Ex-Hyderabad 100×100 mm, IS 2831 32,000 31,900 32,100 – 500 32,500 32,700
TMT Ex-Delhi/NCR 12-25 MM, IS 1786- 500 Fe 37,800 37,600 38,000 – 100 37,900 38,100
Ex-Durgapur 12-25 MM, IS 1786- 500 Fe 36,500 36,300 36,700   0 37,100 37,000
Ex-Raipur 12-25 MM, IS 1786- 500 Fe 35,400 35,300 35,600   0 35,800 36,100
Ex-Mumbai 12-25 MM, IS 1786- 500 Fe 36,900 36,700 37,100   0 36,900 37,000
Ex-Chennai 12-25 MM, IS 1786- 500 Fe 37,400 37,400 37,700 – 100 37,900 37,500
Ex-Hyderabad 12-25 MM, IS 1786- 500 Fe 36,000 35,800 36,200 – 200 36,200 36,500
Wire Rod Ex-Durgapur Wire Rod(5.5 MM) 37,100 36,700 37,500   0 37,200 37,000
Ex-Raipur Wire Rod(5.5 MM) 38,200 37,100 38,200   0 37,900 38,300

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

 

Global HRC Market Overview- Week 18, 2019

Chinese HRC export offers edge down despite rebound in domestic prices- Chinese HRC export offers reported decline on weekly basis despite rebound in domestic prices. Traders in the domestic market are restocking the inventories ahead of May day holidays in China.

Thus stronger sentiments in domestic market amid increased buying led to uptrend in domestic prices.

However nation’s HRC export offers declined on weekly basis as Chinese mills are focusing largely in domestic market.

Currently nation’s HRC export offer is assessed at around USD 525-535/MT FoB basis. Last week the offers stood at USD 535-545/MT FoB basis. Meanwhile sparse trading among buyers in Vietnam also led to fall in offers from China.

Meanwhile prices in domestic market surge by RMB 50/MT D-o-D basis. Domestic prices in eastern China (Shanghai) stood at RMB 4,050-4,060/MT.

And prices at Northern China moved up by RMB 20/MT and stood at RMB 3,930-3,940/MT D-o-D basis in Northern China (Tangshan).

CIS-origin HRC export offers remain stable- This week CIS nation’s HRC export offers remain stable amid lower trades and slow demand in CIS nations.

Last week nation witnessed steep fall by USD 10-15/MT amid weak buying and sluggish trades in CIS regions.

Currently offers are in the range USD 485-495/MT FoB Black Sea. Meanwhile export offers from Ukraine are heard to be on lower side which is around USD 470-480/MT FoB basis.

Thus market sources shared that HRC export offers from CIS nations likely to decline in upcoming month.

Indian HRC export offers to Vietnam remain stable- Indian HRC export offers to Vietnam remain stable this week at USD 540-545/MT CFR Vietnam.

Imported HRC offers to Vietnam remain stable- This week imported HRC offers to Vietnam remain stable amid ongoing holiday of May Day and Liberty day.Thus Vietnamese steel mills were on 5 days holidays.

Currently imported HRC export offers inVietnam is around USD 540-545/MT CFR basis from China.

Meanwhile Russian based MMK steel is offering HRC (small coils) at competitive prices which is around USD 525-530/MT CFR Vietnam.

Global HRC Market Overview – Week 18, 2019

Particulars Currency Prices
HRC, FoB China USD/MT 525-535
CRC, FoB China USD/MT 565-575
HRC, FoB Black Sea USD/MT 470-485
CRC, FoB Black Sea USD/MT 540-558
HRC, CFR Vietnam from China USD/MT 540-545
HRC, CFR Vietnam from India USD/MT 540-545
HRC, CFR Vietnam from Russia USD/MT 525-530
HRC (SAE 1006) CIF Vietnam Formosa USD/MT 555

Source- SteelMint Research

 

Pakistan: Imported Scrap Prices Soften Marginally; Trades Slow Down

SteelMint learned in recent conversations with industry participants that imported scrap offers to Pakistan have shown slight correction following softening global scrap offers. Trades had picked up for Ramadan restocking at higher prices during the closing of last week, however, buying interest has started cooling off on nearing Ramadan month which usually turns market activities slow.

SteelMint’s assessment for containerized Shredded scrap stands at USD 332-335/MT, CFR Qasim, slightly down against USD 337-340/MT, CFR levels that were seen during closing last week.

Global scrap prices seem under a bit pressure and participants expect further downside as May month to see a further slowdown in demand following the largest buyer, Turkey (also) will be going through Ramadan” shared a trader.

Several trades for Shredded scrap in containers from UK and Europe have been reported at around USD 332-335/MT, CFR Qasim.

Asking rates for Dubai HMS 1 stand still at around USD 335-337/MT, CFR depending on quality. In recent trades reported in containers, HMS 1 from Middle East concluded at USD 335/MT, CFR and from UK origin at USD 320/MT, CFR. South African HMS 1&2 traded at around USD 332-335/MT, CFR Qasim.

Local steel market lacks end consumer demand – Domestic market conditions are more-or-less the same since the past couple of weeks. With lesser construction activities and shortage of labor during Ramadam, end consumer demand for steel products is likely to remain low.

Domestic scrap prices at par with landed imported scrap – Domestic scrap prices equivalent to Shredded is being reported at PKR 63,000/MT (USD 445), ex-works inclusive of taxes, up by PKR 500/MT (USD 4) on W-o-W basis. Limited availability of domestic scrap might have supported scrap buyers to refill their inventories last week.

Billet and Rebar markets exhibit mixed sentiments, prices range bound – SteelMint’s assessment of local billet stands at PKR 78,500-79,000/MT (USD 554-558) ex-works. Rebar prices in Northern region reported at around PKR 97,500-98,500/MT that of Southern at PKR 98,500-99,500/MT, ex-works inclusive of local taxes. Participants believe that Pakistani Rupee to remain stable against US Dollar and sharp depreciation is less expected in the short term.

SteelMint’s local steel price assessment –

Average Prices, Ex-work Punjab and Lahore, inclusive of taxes
Particular 30-Apr’19 Last assessment on 23-Apr’19 Change
PKR/MT PKR/MT PKR
Local Scrap (Equivalent to Shredded) 63,000 62,500 500
Bala (Local Billet) 78,500-79,000 78,500-79,000 0
CC Billet (Grade 40) 83,000-83,500 83,500-84,000 -500
CC Billet (Grade 60) 84,000-84,500 84,500-85,000 -500
Deformed bar (G-60) 97,500-98,500 97,000-98,000 500

Source: SteelMint Research

 
Imported Coal Tender

MMTC Tender for Purchase of 18,500 MT Coking Coal

MMTC, India’s largest and state owned trading house, issued a tender for purchase of two grades of coking coal for a quantity of 18,500 MT coking coal on behalf of Neelachal Ispat Nigam Limited (NINL), Odisha.

The material should be imported washed prime hard coking coal of size 0 to 50 mm which needs to be delivered at the integrated steel plant, NINL. Delivery of the material to start on an immediate basis after placing the order by MMTC/NINL.

The techno-commercial bids and Price bids have to be submitted physically/electronically by 1200 Hrs. IST on 3 rd May 2019 and offers to be valid upto-1730 Hrs – 20/05/ 2019

Specification

Items Desired Absolute
Moisture 10% Max 12% Max
Volatile Matter 24-32% 35%
Ash 8.9% Max 10% Max
Sulphur 0.6% Max 0.8% Max
Gieseler Plastometer Test 250Min 200 Min

 

Tender schedule (IST): Due date for submitting the bids is 03 May’19 till 12:00 hrs and the opening of the bids is scheduled on the same day at 12:15 Hrs
.
For contact details view tender section

 

India: Jindal SAW Cuts Pellet Offer Amid Dull Demand

West India (Rajasthan) based pellet maker – Jindal SAW has decreased pellet offers by INR 200/MT (USD 3/MT). Current offers for Fe 63% grade pellets have moved down to INR 8,300/MT (delivered Kandla) against the previous assessment of INR 8,500/MT at last week. Jindal SAW runs a 1.5 MnT pellet plant in Bhilwara (Rajasthan).

Last week, SteelMint reported that western India based steel mills had booked pellet from central India based pellet makers. According to the sources landed cost of pellets at around INR 8,000-8,100/MT.

Competitive offers from central India delivered to western India (Gujarat) kept western India pellet prices under pressure. Also, few Iranian pellet cargoes have arrived at India’s west coast which has become another source of raw material for western India based mills.

Deals reported in central India pellet market after recent price cut-: Raipur (Central India) based pellet manufacturers have reduced offers to INR 6,300/MT (ex-Raipur, GST extra) for Fe 63% grade yesterday. Last offer floated was at INR 6,400/MT (ex-Raipur, GST extra). Thus offers have come down by INR 100/MT. As per the sources reported to SteelMint that around 15,000 MT pellet booked at INR 6,300/MT by Raipur based parties.

Yesterday, Shri Bajrang Power and Ispat Ltd had concluded two pellet export deals recently. SteelMint has learned from company officials that the deal has been concluded at around USD 117/MT, CFR China.

P-DRI prices increased by INR 150/MT to at INR18,750/MT (basic) compared to INR 18,600 /MT a week ago.

Durgapur pellet offers stable-:  In Durgapur (eastern India) reference pellet price assessment stands stable at INR 5,800-5,900/MT (delivered) in line with last week assessment.

There is no concrete offer for the domestic market from most of the major pellet makers from Barbil. They are mostly looking for pellet exports. SteelMint’s assessment for pellet export for Fe 63% grade 3% Al pellets stands at USD 117-119/MT, CFR China. This will be equivalent to INR 5,900-6,000/MT (ex-plant) from Odisha.

P-DRI prices have decreased this week at Durgapur to INR 18,100/MT against last week assessment of INR 18,600/MT.

Southern India pellets maker offers unchanged-: Southern India (Bellary) based pellet makers have kept pellet offers unchanged to 7,000-7,300/MT in line with last week assessment. P-DRI price assessment has also declined by INR 200/MT to INR19,300/MT this week against INR19,500/MT last week.

P-DRI price assessment has also declined by INR 500/MT to INR18,800/MT this week against INR19,300/MT last week.

Indian pellet trade updates-:

— Raigarh based pellet makers’ offer remains stable at INR 6,000/MT (ex-plant).

Southern India based Janki Corp is offering Fe 63% grade pellets at INR 7,000/MT in Bellary.

As per the sources NMDC pellet offers from Bellary may reduce pellet offers following decline by merchant pellet makers last week. Currently, NMDC is offering pellet at INR 7,400/MT (FoT basis) at NMDC Donimalai plant.

SteelMint pellet reference prices as on 29th April’19

City  Grade (Fe %)  Basic Prices in INR/MT 
Barbil* 63 No offers (However assessment at 5,700-5,800)
Jharsuguda 63 No offer
Durgapur 63 5,800-5,900
Jamshedpur 63 5,800
Raipur 63 6,300
Bellary 63 7,000-7,300
Kandla** 63 8,300

**delivered
Prices (GST extra) mentioned for min 1000 MT qty booking on advance payment basis
Source: SteelMint Research

 

China: Domestic HRC Prices Up in Recent Trades

Hot-rolled coil prices rose by RMB 20,and 1500mm wide flat sheet by first-tier mill offered at RMB 3,910/MT, second-tier at RMB 3,900/MT while Q345 flat sheet at RMB 4,070/MT. Transaction is good.

Billet – Yesterday, the ex-factory price of general carbon billet in Tangshan,Changli and Qian’an was settled at RMB 3,560/MT stable. In the early morning, the Changli area led the gains of RMB10 to RMB 3,570/MT. The billet transactions were plain, and the prices of finished products tend to move up.

The billet inventory of Xiangyu Zhengfeng and Haiyi Hongrun billet reads 3,53,500 tons, down 10,500 tons. The overall shipment of finished products is strong, and it is expected that the price of billets will by RMB10 in the afternoon.

Construction Steel: Construction steel in Tangshan is mainly stable. The market price of rebar HRB 400 of big specification is at RMB 3,990/MT , small specification at RMB 4,090/MT while coiled rebar at RMB 4,150/MT.Transaction is sound.

 

India: OMC Keeps Base Price Unchanged for Upcoming Iron Ore Fines E-auction

Odisha Mining Corporation (OMC) – a state-owned miner is to conduct next e-auction for 430,000 MT iron ore fines on 07th May’19. The material put under the hammer is from Gandhamardan, Daitari, and Koira mines. No traders shall be allowed to take part in the e-auction.

Compared to the previous fines e-auction held on 7th Mar’19, the base price for material from Gandhamardan, Koira, and Daitari has remained unchanged.

Price comparison of OMC iron ore e-auctions-

       Mines
Size  Fe (%)  Base Price as on 05th Jan’19  Bid price as on 05th Jan’19  Base Price as on 07th Mar’19  Base Price as on 07th May’19  Quantity Offer
(mm)  (INR/MT)  (INR/MT)  (INR/MT) (MT)
 Gandhamardan -10 60-62 1,200 1,200 1,200 1,200 150,000
 Kurmitar (Koira) -10 62-60 1,050 1,100-1,150 1,100 1,100 130,000
 Daitari -10 64-62 2,300 2,300-2,350 2,400 2,400 150,000
Total 430,000

Base prices in INR/MT on ex-mines basis; including royalty
Source: SteelMint Research

Odisha based major merchant iron ore miners had increased iron ore offers by INR 200/MT in the mid of April’19. After the hike, SteelMint’s Odisha iron ore fines (Fe 63%) index is at INR 2,000 (ex-mines, including Royalty, DMF & NMET). SteelMint in conversation with trade sources learned that increased exports offer in low-grade fines resulted in hike in domestic offers by merchant miners.

OMC is all set with iron ore production ramp-up plans for coming years to make up for expected supply disruption after March 2020 following lease expiry. OMC is planning to achieve 20 MnT iron ore output by FY21.

 

World Crude Steel Output Up 4.5% in Q1 CY’19

According to the recent data released by World Steel Association (WSA) total crude steel production of 64 steel manufacturing countries moved up by 4.5% to 444.11 MnT in (Jan-Mar) Q1 CY’19 as compared to 425.06 MnT in (Jan-Mar) Q1 CY’18.

Meanwhile on monthly premise world steel output shoot up by 13% in Mar’19 to 155 MnT as compared to 137.27 MnT in Feb’19.

SteelMint has analyzed world’s crude steel production numbers of major steel producing countries which are as follows:

China’s crude steel output increases by 10% in Q1 CY’19- China crude steel output moved up by 10% to 231.06 MnT in Q1 CY’19 against 210.21 MnT in the same time frame of previous year.

However on monthly premise the same registered an increase of 13% in Mar’19 to 80.32 MnT in comparison to 70.98 MnT in the previous month.

Lesser stricter restrictions to curb excess output results to surge in nation’s crude steel output.

India’s crude steel output remain stable in Q1 CY’19- As per WSA (World Steel Association) India’s crude steel output remained largely stable at 27.33 MnT in the current quarter which was 27.4 MnT in similiar quarter of previous year

However on monthly basis the same moved up by 8% in Mar’19 to 9.41 MnT against 8.73 MnT in Feb’19.

Major Indian steel mills reported surge in their crude steel output in last quarter in order to achieve their production guidance.

Japan’s crude steel output down by 5% in Q1 CY’19- Japan crude steel output fell by 5% to 24.97 MnT in Q1 CY’19 as compared to 26.4 MnT in Q1 CY’18.

On monthly basis the same stood at 17% to 9.08 MnT in Mar’19 in comparison to 7.74 MnT in Feb’19.

However as per market reports nation’s crude steel production is expected to increase in (April-June) quarter amid increase in production from integrated mills.

United States crude steel output up by 7% in Q1 CY’19- USA crude steel output stood at 22.22 MnT in Q1 CY’19, increased by 7% against 20.81 MnT in the same time frame of previous year.

On monthly premise the same registered an increase of 12% in Mar’19 to 7.75 MnT as compared to 6.89 MnT in Feb’19.

Thus the U.S. Department of Commerce earlier said that the trade actions are aimed at increasing domestic steel production that reflects healthy steel industry. The tariffs are driving production capacity of U.S. steel producers amid lower imports.

Crude steel production of other top steel producing countries in (Jan-Mar) Q1 CY’19 remained as follows Russia: 16.81 MnT, South Korea: 18.10 MnT, Germany at 10.44 MnT, Turkey 8.18 MnT and Brazil: 8.39 MnT.

Performance of major crude Steel producing nations in Q1 CY’19

Country

(Jan-Mar)
Q1 CY’19
(Jan-Mar)
Q1 CY’18
Mar’19

Feb’19

China 231.06 210.21 80.32 70.98
India 27.33 27.4 9.41 8.73
Japan 24.97 26.4 9.08 7.74
United States 22.22 20.81 7.75 6.89
Russia 16.81 17.75 5.79 5.23
South Korea 18.1 17.81 6.26 5.47
Germany 10.44 10.83 3.67 3.12
Turkey 8.18 9.58 2.98 2.63
Brazil 8.39 8.62 2.79 2.66

Quantity in MnT
Source: WSA, SteelMint Research