Monthly Archives: October 2019

Bangladesh: Medium Scale Mills Lower Rebar Offers

Medium scale re-rollers in Bangladesh have slightly reduced their rebar offers by BDT 500/MT (USD 6) against last week. The offers have come down on account of weak trade volumes due to liquidity crunch, as stated by participants to SteelMint.

However, the large scale mills have kept their rebar offers firm, supported by reduced production by around 30-50%. This in turn maintained inventories with the producers.

Further, the sources in Chittagong who majorly deal with large scale mills cited, poor demand have resulted mills to cut down production by 30-40% and reported sufficient inventory level at their premises.

The fresh offers of rebar through the mid-sized mills in Dhaka, Bangladesh reported at BDT 54,000-54,500/MT (USD 638-644); for 500 W, down by BDT 500/MT (USD 6), W-o-W. The prices are ex-works, including local taxes & size 10-32 mm.

In context to large scale mills, the rebar offers were reported at around BDT 60,000-61,000/MT (USD 709-721) ex-works Chittagong, including local taxes & size 10-32 mm shared by trade sources.

Meanwhile the domestic billet offers are assessed at BDT 44,500-45,000/MT (USD 526-532); ex-works in Dhaka.

Coming to price movements in raw materials, the fresh offers of imported busheling scrap to Bangladesh from Japan have reported around USD 295-300/MT, CFR Chittagong.

Indian Sponge iron import offers to Bangladesh are hovering at USD 270-275/MT CFR Chittagong, for 79-80 FeM & 100% lumps. As per one of the large mills in Bangladesh, couple of days back they bought about 2,000 MT Indian origin sponge iron at around USD 268/MT CFR Chittagong.

 

Indian Mills Raise HRC Export Offers To Vietnam

In conversation with trade participants, SteelMint learned that Indian mills have increased HRC export offers to Vietnam by around USD 5-10/MT against last week.

As per trade sources, major Indian steel mills are offering HRC (SAE 1006, 2mm) at USD 420-425/MT CFR Ho Chi Minh, which was USD 415-418/MT CFR basis at the beginning of the current week. However, no deals have been reported at hiked offers, sources shared.

Indian mills lowered steel production during the (Jul-Sep) Q2 FY’19 along with an increase in exports to ease off inventories. Few market participants indicated similar indications behind hike in offers, and sources also expect HRC prices in the Indian domestic market to increase in Nov’19.

Current HRC offers to Vietnam-

1. HRC (SAE 1006) 2mm/ Japanese offer- Nippon Steel is offering at USD 430 /MT CFR Vietnam, stable for the third consecutive week.

2. HRC (SAE 1006) 2-3mm/ South Korean offer- Hyundai steel offering at USD 425/MT CFR Vietnam. The previous offer was around USD 435/MT during the week ended 19 Oct’19.

3. HRC (SAE 1006) 2-3mm/ Chinese offers- Rizhao Steel’s offer stood at USD 425/MT CFR Vietnam at the beginning of the current week.

 

India: Secondary Mills Raise Rebar Offers

Indian medium and small scale rebar market has observed mix trends over the past week and as per weekly comparison prices have moved up by INR 200-600/MT in most of the regions on increase in semis price range.

Also, on daily price assessment, rebar offers slightly moved up following by upsurge in billet prices in overall markets.

While considering rebar trade volume, its being notified that future bookings remained slow due to lack of trade activities with festive season where trade participants and work-force remained unavailable in major regions and overall volumes remained moderate except in southern India

Further, south India based few participants shared nominal buying inquiries amid monsoon season and supply movement also negatively affected with sufficient inventory level and it could be a major concern towards offering trade discounts which is hovering around INR 300-600/MT particularly in Chennai.

While, northern region is carefully watching the activities from NGT for measured construction activities amid poor air quality and traders anticipating a minor correction in near specified period.

Coming to eastern India, where festive mood has limited lifting of finished products, this in turn marginal rise in price range even though there are less inventories with the mills. However, sources are hopeful for surge in price range with resume trade activities in coming week.

Current trade reference rebar offers by mid scale mills hovering at INR 29,700-29,900/MT ex-Raipur, INR 30,200-30,600/MT ex-Durgapur, INR 31,100-31,400/MT ex-Jalna & INR 30,800-31,100/MT ex-Chennai, Grade- Fe500, excluding 18% GST & size 12-25mm.

Trade Updates (Rebar 12 mm)

— Rathi Steels based in North region has unchanged their offers at INR 33,300/MT.
— Raipur based Real Ispat (GK TMT) has unchanged their offers at INR 32,200/MT.
— Raigarh(Chhattisgarh) based Anjani Steels Ltd. (Radhe TMT) has unchanged their offers at INR 30,300/MT.
— Jalna based Rajuri Steel Pvt. Ltd. (Rajuri TMT) is offering at INR 31,300/MT (up by INR 100/MT).
— Jalna based Gajkesari Steels And Alloys Private Limited (Gajkesri TMT) is current offering at INR 31,000/MT.
— Wardha based Sangam TMT is current offering at INR 30,100/MT.
— South region Chennai based Sakthi Ferro Alloys India Pvt. Ltd. (SSI TMT) is currently offering at INR 31,500/MT.

Note- All prices are basic & excluding GST, subject to re-confirmation.

 

US Coking Coal: Prices continue sliding amid ongoing weakness in global steel output

US coking coal prices have been edging downward since May this year, in line with falling Asia-Pacific indexes, as the downstream steel sector continue to struggle with weak demand across the globe.

Weaker steel output and iron ore rates have hit all major coking coal-consuming nations across Europe, Brazil, the US and Japan.

The Atlantic metallurgical coal export markets have been suffering from weaker steel prices and lower steel mill utilization rates right from the first half of this year. As steel production declines gathered pace in the Atlantic Basin, coking coal consumption softened dramatically, in turn reducing offtake from steel buyers in the US and Europe.

Furthermore, a consistent decline in the fob price of Australian premium low-volatile hard coking coal (HCC) in the Asia-Pacific markets has weighed heavily on the export pricings for comparable grades of US-origin coking coal, mainly high-volatile type A (HVA) and Low Vol.

US HVA coking coal, in particular, has undergone the sharpest drops relative to the Australian premium low-vol HCC grade.

Meanwhile, however, demand for US coking coal from India has lately regained strength, with the gradual resumption of normal market activity following the delayed retreat of the seasonal monsoon rains in most parts of the country.

PRICE ASSESSMENTS

The latest FOB US East Coast price of low-volatile hard coking coal is assessed at USD 139.00/MT, based on 58% coke strength after reaction (CSR), 8% ash, 0.8% sulfur and 19% volatile matter material.

For Indian buyers, the above price amounts to USD 167.75/MT on CNF India basis, after considering a USEC-India dry bulk freight rate of USD 28.75/MT for delivery by Panamax vessel class.

The US high-volatile type A (HVA) coking coal price is assessed at around USD 145.00/MT FOB USEC, based on 7% ash, 0.85% sulfur and 32% volatile matter.

The US high-volatile type B (HVB) coking coal price is assessed at around USD 134.00/MT FOB USEC, based on 8% ash, 0.95% sulfur and 34% volatile matter.

 

Daily Update: Indian Steel Market 31 Oct’19

Indian Billet prices increase further on improved demand from the local mills. Today the prices surged near to INR 100-600/MT (upto USD 9).

On day trade activities, the major rise in Billet prices seen in North & Eastern India by INR 400-600/MT followed by INR 100-300/MT in remaining locations.

Following the surge in billet prices, Sponge iron prices increased by INR 100/MT day-on-day in major markets.

SteelMint’s latest price assessment for induction furnaces billet in Indian market stood at INR 25,700-28,900/MT (USD 361-407) ex-plant.

Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 16,100-17,300/MT (USD 226-244); prices are ex-plant & excluding GST.

Rupee & BSE Sensex

— On 31st October 2019 (Thursday) INR to USD exchange rate stood at INR 70.93.

— ICEX (Indian Commodity Exchange Ltd) Dec’19 contract for STEELLONG today open at INR 28,140/MT & last traded (IST 18:02 hrs) at INR 28,330/MT.

— BSE Sensex closed at 40,129(+77) on Thursday, as against last day (Wednesday) at 40,051(+220).

— NSE Nifty50 index was closed today at 11,877(+33) & Nifty Metal at 2,500(-13).

Raw Materials

— An eastern India based pellet maker has concluded an export deal around 50,000 MT for regular grade pellets (Fe 64%, containing 3% alumina) to China at around USD 102/MT, CFR China.

— Silicon Manganese (60-14) trade reference prices in Raipur are hovering at INR 56,000-56,500/MT ex-plant.

— The manufacturers in Raipur reported pellet deals for 5,000 MT in local market at INR 5,750/MT & about 3,000 MT sold to outside at INR 5,650/MT; both on ex-plant basis & Fe 63%.

— Melting scrap offers in Western India- Jalna (Maharashtra) incline by INR 300/MT in a day trade activities

Semi Finished

— As per sources in central India (Raipur), they have booked approximately 10,000-15,000 MT pig iron from SAIL’s BSP at an average price of INR 23,200-23,300/MT ex-plant, which is equivalent to INR 23,600-23,700/MT FoR Raipur.

— Rashmi Metaliks in Durgapur have slightly raised sponge prices and as per sources P-DRI traded at around INR 16,200/MT.

— Electrosteels based in Bokaro, Jharkhand has traded steel grade pig iron at around INR 23,000/MT ex-plant

— Raipur based one of the major sponge producer has sold about 6,000 MT P-DRI at INR 15,600-15,700/MT, while offers by mid sized plants hovering at INR 15,700-15,900/MT; ex-plant.

— Billet deals learned at INR 26,400/MT FoR Raipur from Raigarh based manufacturers.

— Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 16,200/MT ex-plant.

— Raipur based mills sourcing sponge pellet from Odisha at around INR 15,900/MT FoR Raipur.

— East India, Odisha based manufacturer, Mahavir Ferro Alloys offered C-DRI mix material at INR 16,500/MT ex-plant as per officials. And added no major deals at the offer price.

— Apple Industries in Bellary (Karnataka) offered Billet at INR 26,800/MT ex-plant.

— BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 16,000-16,100/MT ex-Bellary, an official reported.

Wire Rod & Pipe

— ERW pipe manufacturers in Odisha, east India has reduced offers by INR 300/MT & reported at INR 30,000-30, 200/MT ex-plant & excluding GST-Sources.

— Trade discounts in Raipur wire rod through traders were at INR 1,200-1,300/MT & by plants at INR 700-900/MT. However base prices were firm at INR 31,300/MT ex-Raipur & up by INR 100/MT to INR 29,800-30,300/MT ex-Durgapur.

Reference prices as on 31st October 2019

  Particular/Delivery Size, Grade, Origin Prices Min Max Change 1W 1M
Scrap Ex-Alang HMS(80:20) 21,800 21,700 21,900 + 100 21,300 21,800
Ex-Mumbai HMS(80:20) 21,200 21,000 21,300 + 200 20,600 21,300
Ex-Chennai HMS(80:20) 19,600 19,400 19,800   0 19,400 19,700
C-DRI Ex-Durgapur Mix, FeM 78%, +/-1 17,300 17,200 17,400 + 100 16,900 16,650
Ex-Rourkela Mix, FeM 80%, +/-1 16,100 16,000 16,200 + 100 15,900 16,500
Ex-Raipur Mix, FeM 80%, +/-1 16,700 16,600 16,800 – 50 16,500 17,100
Ex-Bellary Lumps, FeM 80%, +/-1 16,300 16,200 16,400   0 16,200 16,500
P-DRI Ex-Durgapur Lumps, FeM 78%, +/-1 16,200 16,100 16,300 + 100 15,700 15,550
Ex-Raipur Lumps, FeM 80%, +/-1 15,750 15,700 15,800   0 15,450 15,800
Ex-Bellary Lumps, FeM 80%, +/-1 16,000 15,900 16,100   0 15,800 16,000
Ex-Hyderabad Lumps, FeM 80%, +/-1 16,400 16,300 16,500   0 16,300 16,600
Ingot Ex-Mandi Gobindgarh 3.5 x 4.5 Inch, IS 2830 28,650 28,600 28,700 + 550 28,100 28,550
Ex-Durgapur 3.5 x 4.5 Inch, IS 2830 26,200 26,100 26,300 + 200 25,800 25,900
Ex-Rourkela 3.5 x 4.5 Inch, IS 2830 25,350 25,300 25,400 + 250 25,000 25,450
Ex-Raipur 3.5 x 4.5 Inch, IS 2830 25,800 25,700 25,900 + 200 25,400 25,800
Ex-Mumbai 3.5 x 4.5 Inch, IS 2830 28,100 28,000 28,200 + 250 27,500 27,700
Billet Ex-Mandi Gobindgarh 100×100 mm, IS 2831 28,900 28,800 29,000 + 600 28,300 28,800
Ex-Durgapur 100×100 mm, IS 2831 26,500 26,400 26,600 + 100 26,100 26,200
Ex-Rourkela 100×100 mm, IS 2831 25,700 25,600 25,800 + 300 25,300 25,700
Ex-Raipur 100×100 mm, IS 2831 26,300 26,200 26,400 + 250 25,850 26,250
Ex-Ahmedabad 100×100 mm, IS 2831 28,650 28,600 28,700 + 50 28,300 28,000
Ex-Mumbai 100×100 mm, IS 2831 28,350 28,300 28,400 + 250 27,700 27,900
Ex-Chennai 100×100 mm, IS 2831 27,200 27,100 27,300   0 27,100 27,000
Ex-Hyderabad 100×100 mm, IS 2831 26,500 26,400 26,600   0 26,000 26,500
TMT Ex-Delhi/NCR 12-25 MM, IS 1786- 500 Fe 32,300 32,100 32,500   0 32,000 32,100
Ex-Durgapur 12-25 MM, IS 1786- 500 Fe 30,400 30,200 30,600   0 30,200 30,000
Ex-Rourkela 12-25 MM, IS 1786- 500 Fe 30,400 30,300 30,500 + 100 30,400 30,600
Ex-Raipur 12-25 MM, IS 1786- 500 Fe 29,800 29,700 29,900   0 29,600 30,300
Ex-Jalna 12-25 MM, IS 1786- 500 Fe 31,200 31,100 31,400 + 200 30,800 31,200
Ex-Mumbai 12-25 MM, IS 1786- 500 Fe 31,700 31,500 31,900 + 200 31,100 31,000
Ex-Chennai 12-25 MM, IS 1786- 500 Fe 30,900 30,800 31,100   0 30,900 31,400
Ex-Hyderabad 12-25 MM, IS 1786- 500 Fe 30,000 29,800 30,100   0 29,900 30,400
Wire Rod Ex-Durgapur Wire Rod(5.5 MM) 29,900 29,800 30,300 + 100 29,700 29,800
Ex-Raipur Wire Rod(5.5 MM) 30,500 30,000 31,300 + 100 30,400 30,300
 

Turkey: Imported Scrap Market remains Active in Recent Deal

SteelMint learned from market participants that after remaining stable for around a week, Turkish imported scrap prices have inched up marginally in a recent deep-sea bulk booking being concluded yesterday. After observing a sharp rebound in prices during the first 3 weeks of October’19 amid numerous bookings witnessed, the prices have mostly remained stable in the last week.

In latest deal reported, a Mediterranean region-based steelmaker concluded a bulk vessel yesterday from a Netherlands based scrap yard, booking 25,000 MT of mixed cargo comprising of 22,500 MT of HMS 1&2 (80:20) at USD 248/MT CFR, and 2,500 MT of bonus at USD 258/MT CFR Turkey.

Prior to this, during the closing of last week a USA based yard had sold a bulk cargo of 40,000 MT to a West Marmara, comprising of 20,000 MT HMS 1&2 (90:10) and 20,000 MT of Shredded at an average price of USD 256/MT CFR, putting HMS 1&2 80:20 at USD 252-253/MT.

As per SteelMint’s methodology, assessment of US-origin HMS 1&2 (80:20) scrap has now escalated to USD 254/MT, CFR Turkey, inching up by USD 1/MT, as against USD 253/MT at the closing of last week. The assessment of European origin HMS 1&2 (80:20) stands at around USD 248/MT, CFR Turkey.

After reaching 3 year low levels by Sep’19 end, the average Price for Turkish scrap imports has now increased by over USD 28/MT over the course of Oct’19, while the reversal of Tariff decision by US govt on Turkish steel exports will keep the prices supported in the short term.

Turkish Rebar export prices currently stand at USD 410-420/MT FoB, slightly improving against last week, however, exports have still remained sluggish.

 
Sector-wise Coal Receivers in SECL's Coal Auction

SECL Fetches 36% Premium for Coal Sales in Spot E-Auction

South Eastern Coalfields Ltd (SECL), the largest coal producing subsidiary of CIL, has recently concluded its spot e-auction for sales of 316,650 MT coal, scheduled for the month of Oct’19.

The company had witnessed the entire coal volume sold in the auction, while fetching a premium of 36% over the notified reserve price. Apparently, SECL had yielded an average booking coal price of INR 3187.77/MT against the reserve price of INR 2338.43/MT accessed in the auction.

The offered coal volume comprised of G5, G6, G7, G8, G9 and G13 grades, spread across SECL’s  15 coal mines.

However, higher competitiveness for lower coal grades was seen amongst the buyers, as G13 had managed an overall premium of 112% over the notified price. Notably, the coal offered from Manikpur OC had inflicted sales price that were higher than double the respective base price.

Likewise, the other two lower grades G8 and G9 in the lot had fetched higher premiums comparable to the remaining higher grades.

In terms of individual lots, G7 grade of coal offered from Amadand was sold at a price close to the base price set in the auction, while fetching bids only in excess of INR 20/MT. Remaining coal volume offered from different sources had all received bids in excess of INR 180/MT over the respective reserve price.

Source Grade & Size Reserve Price Avg Bid Price % Increase over Reserve Price Quantity Sold
Gayathri UG G5 ROM 3285 4473.47 36% 18,000
Vijay West G5 ROM 3285 4060.82 24% 33,000
Rajgamar 4&5 G5 ROM 3285 4448.75 35% 8,000
Singhali G5 ROM 3285 3985 21% 100
Singhali G5 SLK 3321 3501 5% 50
Bagdeva G5 STM 3609 4397 22% 1,500
Singhali G5 STM 3609 4363 21% 2,000
Rehar UG G6 ROM 3029 4086 35% 10,000
Kumda 7&8 G6 ROM 3029 4302.75 42% 10,000
Sharda OCM G6 ROM 3029 3524.75 16% 30,000
Amadand UG G7 ROM 2774 2787.85 0% 20,000
Singhali G7 ROM 2774 3775.86 36% 14,000
Khairha UG G7 ROM 2774 3130.47 13% 15,000
Singhali G7 SLK 2810 3424.38 22% 8,000
Rajendra UG G8 ROM 2109 3441.75 63% 2,000
Bangwar UG G9 ROM 1642 2508.31 53% 90,000
Damini UG G9 ROM 1642 2558.33 56% 15,000
Balrampur UG G13 ROM 1176 1597.47 36% 15,000
Manikpur OC G13 ROM 1176 3032.92 158% 25,000
Total 316,650

Prices in INR/MT
Quantity in MT

Major Coal Buyers:
Near-about half of the coal volume floated in the auction was taken by Traders, followed by power utilities which had emerged as the largest coal receiver among the specific end-user section.

In terms of individual coal buyers, SKS Power was the largest receiver in the auction with receipt of 28,650 MT coal. The company had acquired G5, G7 and G9 grades of coal.

DB power, involved in purchase of G5, G6 and G7 grades of coal was the second-largest receiver, followed by BALCO which had preferred G13 coal grade.

Company Name Quantity Taken
SKS Power 28650
DB Power 20000
BALCO 16350
Sarda Energy & Minerals 15900
UltraTech Cement 15000
Hind Unitrade 13000
Orient Paper Mills 12500

Quantity in MT

 

India: SAIL Receives Overwhelming Response for its 13,000 MT Pig Iron; May Increase Prices

Steel Authority of India Ltd (SAIL) has received decent response for its 13,000 MT steel grade pig iron offer floated on 25th Oct’19 for sale from Bhilai Steel Plant(BSP), SteelMint learnt from trade participants. Nearly 10,000 MT pig iron was learned to have booked at base price, shared company official.

However as per couple of major stockists in central India (Raipur), they have booked approximately 15,000 MT pig iron from SAIL’s BSP at an average price of INR 23,200-23,300/MT ex-plant, which is equivalent to INR 23,600-23,700/MT FoR Raipur.

Meanwhile another furnace owner claimed purchase of about 3,000 MT pig iron from Bhilai Steel Plant (BSP) at INR 23,200/MT ex-plant, equivalent to INR 23,500-23,600/MT landed.

If sources are to be believed, SAIL has received decent response and is likely to float fresh price circular in next few days.

“Since Neelachal Ispat (NINL) is yet to resume pig iron production, there is active demand for SAIL’s pig iron.” cited traders in Central India.

SAIL is India’s largest steel producer in terms of capacity which is about 21 MnT per annum. Meanwhile in context to Pig iron NINL is the largest merchant producer of pig iron with an annual hot metal production capacity of about 1.1 MnT.

 

Thailand Steel Mill Books Bulk Scrap Cargo from US

SteelMint learnt from market participants that the bulk market in South East Asia turned active amid recent bookings reported. Earlier this week, a prominent steel manufacturer in Thailand has booked a bulk scrap vessel from a major USA based recycler.

The 30,000 MT cargo comprising of Shredded scrap in entirety and is reportedly booked at around USD 288/MT CFR Thailand. The shipment for the same is expected in November while the vessel is likely to arrive at berth by Dec’19. Bulk vessel offers to South Asia also stand in the range of USD 290/MT CFR Chittagong and CFR Kandla for Shredded scrap.

Ferrous scrap imports to Thailand have remained stable in Sept’19 as it imports 0.11 MnT scrap in the month, same as the previous month. However, on a yearly basis, scrap imports have decreased by 89% from 0.16 MnT registered during the same period a year ago, according to data maintained with SteelMint.

During the period of Jan-Sept’19, ferrous scrap imports witnessed a sharp decline of 28% Y-o-Y to 0.72 MnT as against the same period in 2018 when it stood at 1.23 MnT.

The United States remained the largest scrap supplier to Thailand, as it supplied 0.03 MnT scrap in Sep’19 with 27% share in total scrap imports by Thailand, remaining unchanged as compared to the previous month. Followed by other major suppliers like Panama, Trinidad & Tobago & Australia which supplied 0.01 MnT of scrap with 9% share each, in total scrap imports by Thailand.

 

India: Domestic HR Plate Prices Correct Slightly on Limited Bookings

This week domestic plate prices witnessed correction against last week. Current market reference prices for HR-Plates stand around INR 34,000-34,500/MT (ex-Mumbai) and INR 33,000-34,000/MT (ex-Delhi). Prices mentioned above are basic, and extra GST @18% is applicable.

Further traders are anticipating an uptick in flat steel demand amid the influx of investments announced by the government in the budget and the resumption of construction activities with the offset of monsoon season and festival holiday.

Moreover, market participants are hoping to get support from steel producers while awaiting clarity on their resolutions on the announcement of discounts or rebates to uplift buying interest.

China plate export offers inch down on limited overseas trades- This week, Chinese plate export offers inched down by USD 2/MT amid overseas importers enticed by lucrative export offers in South East Asian markets from India, Japan, and South Korea.

Thus, currently, the Chinese plate export offer stands around USD 440-450/MT narrowing down from USD 443-450/MT in the preceding week.

However, Chinese mills have shifted their focus towards the domestic market in purview of limited overseas trades amid increased competition in the overseas market.