Monthly Archives: November 2019

China’s Graphite Electrodes Market Update

SteelMint has heard from its market sources that China’s graphite electrode market continues to remain weak with production capacity far exceeding the downstream consumption rate and imbalance between supply and demand has become quite severe.

With lower operating rates of downstream steel mills, the electrodes are being purchased only on demand and the domestic prices are believed to touch bottom. The capacities of UHP grade graphite electrodes have been newly added and are being put into production resulting which the tight supply of the same has been gradually eased.

The current price of 450mm HP grade GE are heard to be in the range of RMB 13,000 – 15,000/MT (USD 1,825 – 2,100/MT) whereas that of UHP grade electrodes of size 500mm are in the range of RMB 15,000 – 22,000/MT (USD 2,100 – 3,090/MT)and 600mm are in the range of RMB 42,000 – 53,000/MT (USD 5,900 – 7,400/MT).

China is a net exporter of graphite electrodes. However, with the continuous release of GE production capacity in the domestic market, competition has become increasingly fierce and foreign markets have become a battlefield amid tough competition from various other GE producing nations.

China’s GE exports in August registered a plunge of 34% M-o-M basis and stood at 34,141 tonne. However, in September, exports increased significantly, recording an increase of 38% M-o-M basis and reached the level of 47,235 tonne. Due to large exports in September, the gap in the foreign market was made up to a certain extent leading to a decline of 44% M-o-M basis in October as the same stood at 26,647 tonne during the month.

Large domestic enterprises  in China have gradually invested in the ultra-high and large-size graphite electrode production capacity and the new capacity have gradually been released. Subsequently, the shortage of UHP grade GE has been eased out and it became a major commodity of exports during 2019. In first ten months of the year (Jan-Oct), China’s electrodes exports stood at 0.33 MnT against 0.28 MnT in the corresponding period of previous year.

 

OMC Iron Ore E-auction Receives Overwhelming Response; Entire Quantity Booked

Odisha Mining Corporation had scheduled its iron ore e-auction today (30th Nov’19). The auction conducted was for 530,000 MT iron ore and the material put under the hammer was from Gandhamardan, Daitari and Koira mines.

Out of the total quantity 485,000 MT was DR CLO; 30,000 MT was lump and remaining 15,000 MT was low grade fines. Miner had reduced base price of lumps by INR 150-300/MT from all its mines against the base price of last e-auction conducted on 30th Sep’19.

According to market sources report to SteelMint, the auction fetched aggressive participation with entire offered quantity getting booked at above set base price.

The base price for low grade iron ore fines (Fe 56%) from Koira mines was set at INR 700/MT and the lot received bids at INR 1,150/MT.  The lots containing lump & DR- CLO fetched bids up by upto INR 450/MT over set base price.

OMC iron ore e-auction details

Mines  Size  Fe (%) Base Price as on 30th Sep’19 Bid Price as on 30th Sep’19 Base Price as on 30th Nov’19 Bid Price as on 30th Nov’19 Quantity Offered 
(mm) (INR/MT) (INR/MT) (INR/MT) (INR/MT) (MT)
 Gandhamardan 10-40 62% 2,600   2,600 2,300                                     2,350 1,95,000
10-180  65% 1,900 2,100-2,150 1,750                                     2,200 30,000
 Kurmitar (Koira) 10-40 62% 3,100 3,100 2,800                                     3,050 2,00,000
 Kurmitar (Koira) Fines 56% 700                                     1,150 15,000
 Daitari 10-40 62% 3,000 3,000 2,800                                     2,850 90,000
 Total 5,30,000

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

 

Australian Coking Coal: Prices steady amid improved demand in China market

Australian coking coal prices have held mostly steady over the past two weeks, with Chinese end-users continuing to procure imported materials despite stringent import restrictions at the country’s major coal-handling ports.

China’s domestic coking coal prices have found stability in recent days on the back of higher domestic metallurgical coke prices.

Currently, spot prices for seaborne coking coal cargoes are relatively cheaper compared to domestic materials in China.

At this juncture, the implementation of Chinese import restrictions beyond this calendar year remains ambiguous in the midst of fears that they may possibly extend until the Chinese New Year in late January.

PRICE ASSESSMENTS

Latest offers for the Premium HCC grade are assessed at around USD 133.75/MT FOB Australia, higher by USD 0.81/MT than the average rate of USD 132.94/MT prevailing during the week gone by (18th – 22nd Nov’19).

Offers for the 64 Mid Vol HCC grade are assessed at around USD 120.55/MT FOB Australia.

For Indian buyers, the above offers amount to USD 147.25/MT and USD 134.05/MT respectively on CNF India basis.

Pulverized Coal Injection (PCI) & Semi Soft Coking Coal

  FOB Australia CNF China CNF India
Low Vol PCI 87.80 100.00 101.30
Mid Tier PCI 83.80 96.00 97.30
Semi Soft 78.30 90.50 91.80

N.B.: All prices are in USD/MT

 

Global Ferrous Scrap Market Overview: Week 48, 2019

Global ferrous scrap market observed a rising trend in almost all the major markets this week. Turkey witnessed a couple of bookings at significantly increased prices, while offers to South Asian markets remained firm with slow buying activities slow. Japanese Tokyo steel hiked its scrap purchase prices while China’s Shagang steel observed two price cuts in a week.

Turkey: Imported scrap prices to Turkey have moved up all through this week in a couple of deep-sea cargo bookings that concluded this week.

In recent deal reported, a Turkish mill booked 40,000 MT scrap cargo from US; comprising of HMS (80:20) at USD 272/MT; Shredded at USD 277/MT. Assessment of US-origin HMS 1&2 (80:20) scrap now stands at USD 272/MT, CFR Turkey, against USD 263/MT CFR in last week’s report, while the assessment of European origin HMS 1&2 (80:20) stands at around USD 265/MT, CFR Turkey.

Japan: Tokyo Steel has hiked its scrap purchase bids by JPY 500/MT (USD 5) at all of its 5 works this week. The new prices for all grades effective from 27th Nov’19.After the said price hike, the company is paying JPY 23,500 /MT (USD 216) for H2 scrap delivered at Tahara plant in central region while JPY 22,000 / MT (USD 202) for Okayama plant, while price for H2 delivered to Kyushu works in the western region, Utsunomiya works located in the Kanto region and Takamatsu Steel Center the new price will be JPY 24,500/MT (USD 225), JPY 24,000/MT (USD 220) and JPY 21,000/MT (USD 193) levels respectively.

South Korea: Dongkuk Steel Mill one of the largest EAF steel producers in South Korea has reportedly booked a bulk vessel of 10,000 MT cargo from Russia, for A3 grade scrap. The booking has reportedly been concluded at a price level of USD 265/MT CFR South Korea.

India: India’s imported scrap market has remained mostly silent with buyers generally keeping away from concluding any deals. Offers for imported scrap remained mostly stable, however, after a rise in Turkish prices this week, there is a likelihood of a further upward in the coming week.

Offers for containerized Shredded from the UK, Europe and the USA to India remain flat at around USD 285/MT, CFR Nhava Sheva, almost unchanged against last week’s report with no major trades for Shredded scrap were reported on low buying interest, as domestic market sentiments remain weak.

HMS 1 offers from most origins were assessed at USD 270-273/MT CFR Nhava Sheva, while HMS 1&2 (80:20) from Europe was offered at around 260/MT CFR. UAE origin HMS 1 super (no ci gi) was reported in the range of USD 270-275/MT CFR, while West African HMS 1&2 (80:20) stood at USD 255-260/MT CFR Nhava Sheva.

Pakistan: Buyers interest for imported scrap has remained limited this week, with only a few trades being reported, however, with European yards likely to close down in a few weeks, bookings may increase in the coming weeks amid winter restocking.

For shredded scrap, few bookings were concluded later in the week at around USD 285/MT CFR Qasim, while the offers remained stable against last week at USD 285/MT CFR levels.

Bangladesh: This week a Chittagong based major steelmaker has booked a bulk vessel with 32,000 MT of mixed cargo from a USA origin recycling yard, comprising of Shredded scrap at USD 305/MT HMS scrap at USD 300/MT and Bonus (P&S) at USD 310/MT CFR Chittagong. The shipment for the same is expected in Jan’ 20.

Imported scrap offers to Bangladesh in containers remain stable amid slow trading activity in the last couple of weeks, however, market participants believe that buying is expected to improve in the coming days. Offers for Shredded scrap stand at USD 296-300/MT CFR Chittagong. Prices for containerized HMS scrap remain flat, with offers for HMS 1 and HMS 1&2 (80:20) were reported at around USD 285/MT and 275-280/MT CFR respectively.

China: China’s Shagang Steel announced 2 price cuts for their scrap purchase this week by RMB 30/MT each, on recent decline in billet prices, while the company has now observed 6 price revisions in Nov’19.

After the 2nd price cut, Shagang Steel is now paying RMB 2,730/MT (USD 388) inclusive of 13% VAT for HMS (6-10 mm thickness) delivered to headquarters works situated in Zhangjiagang north of Shanghai in China, down by RMB 30/MT(USD 4) against the last report of RMB 2,760/MT (USD 392) on 27th Nov’19.

 

Indian Steel Market Weekly Snapshot

Indian semi finished steel market observed average inquiries from the domestic buyers. However export demand was quite good, thus prices through the mid scale mills remained volatile during this week. Major mills are expected to raise finished steel prices for Dec’19.

In context to supply, the manufacturers are maintaining production as per demand, hence there are no major stock in semis products amid sufficient orders with them.

As per assessment made by SteelMint, this week prices of Semis & Finished long steel products through the mid scale mills have fluctuated by INR 100-400/MT (upto USD 6). However, the domestic flat steel prices further increase by INR 500-750/MT by major mills.

IRON ORE and PELLETS

Odisha merchant iron ore miners kept the prices unchanged this week. Last week few merchant miners had increased iron ore lumps (5-18) offers by INR 200-300/MT. Odisha govt. extends bid submission due date for Iron ore & Manganese mine auctions – Phase III to 3rd Feb’20.

— PELLEX down by INR 50/MT to INR 6,150/wmt (DAP Raipur) amid deals from Odisha. In Durgapur SteelMint’s reference, pellet price increased by INR 200/MT to INR 5,700-5,900/MT (ex-Durgapur, GST extra). Bellary based major pellet maker concluded around 40,000-42,000 MT pellet deal at INR 6,200-6,350/MT ex-plant.

— Jindal SAW has raised pellet offers by INR 150/MT to INR 8,050/MT (delivered Kandla) against INR 7,900/MT last week.

— No pellet export deals were reported this week. SteelMint Pellet export assessment stands at USD 97-98/MT, FoB India.

COAL

Australian coking coal prices have held mostly steady over the past two weeks, with Chinese steelmakers continuing to procure imported materials despite stringent import restrictions at the country’s major coal-handling ports.

China’s domestic coking coal prices have found stability in recent days on the back of higher domestic metallurgical coke prices. Currently, spot prices for seaborne coking coal cargoes are relatively cheaper compared to domestic materials in China. At this juncture, the implementation of Chinese import restrictions beyond this calendar year remains ambiguous in the midst of fears that they may possibly extend until the Chinese New Year in late January.

— Latest offers for the Premium HCC grade are assessed at around USD 133.75/MT FOB Australia and USD 147.25/MT CNF India.

FERROUS SCRAP

India’s imported scrap market has remained mostly silent with buyers generally keeping away from concluding any deals. Offers for imported scrap remained mostly stable; however, after a rise in Turkish prices this week, there is a likelihood of a further upward in the coming week.

— SteelMint’s offers for containerized Shredded from the UK, Europe and the USA to India remain flat at around USD 285/MT, CFR Nhava Sheva, almost unchanged against last week’s report with no major trades for Shredded scrap were reported on low buying interest, as domestic market sentiments remain weak.

— HMS 1 offers from most origins were assessed at USD 270-273/MT, while HMS 1&2 (80:20) from Europe was offered at around 260/MT CFR Nhava Sheva. UAE origin HMS 1 super (no ci gi) was reported in the range of USD 270-275/MT, while West African HMS 1&2 (80:20) stood at USD 255-260/MT CFR Nhava Sheva.

FERRO ALLOY

— Silico Manganese prices increased amid restricted supply in the market. Most of the producers are operating at a much lower capacity. Current assessment in Durgapur is at INR 58000/MT whereas, in Raipur, prices are at INR 57000/MT

— Ferro Manganese prices have increased due to low supply in the domestic market. Prices are likely to increase amid less availability of material and ore prices firming up.

— Ferro Chrome prices remained depressed owing to the selling pressure and low demand in the domestic and overseas markets. Prices are now at bottom levels but can go further lower if suppliers need to generate cash flow.

— Ferro Silicon prices in Bhutan and Guwahati increased, as the inquiries started increasing and the supply situation is tightening.

— State-owned, MSTC – Karnataka has reduced base price for Manganese ore auction by up to 25% and the quantity is offered about 31,752 MT, which is scheduled to be auction on 25 Nov’19.

SEMI FINISHED

Indian Semi finished steel market observed volatility in prices on fluctuating demand. Billet offers fluctuated in the range of INR 100-400/MT & Sponge offers by INR 100-200/MT W-o-W.

However, the mills in eastern India reported good demand for exports to Nepal and healthy deals concluded for Billet & Sponge iron amid firm price range.

— As per officials from Jindal Steel, pig iron (steel grade) traded at INR 24,000/MT ex-plant, Raigarh, Central India.

— Sources reported 4-5 rakes of sponge C-DRI (FeM 80) export to Nepal at around USD 265/MT CPT Raxaul/Jogbani border, Nepal.

— Indian sponge iron exporters have concluded export deals to Bangladesh for about 5,000-6,000 MT at around USD 270/MT CPT Benapole (dry port of India & Bangladesh). This is equivalent to USD 285/MT CFR Chittagong, Bangladesh.

— SAIL’s Rourkela Steel Plant tender held on 28th Nov’19 to sell about 4,700 MT steel grade pig iron; had received good response. The company was sold out about 3,000 MT pig iron at a base price of INR 23,050/MT EXW-Rourkela.

— Nepal mills actively book Indian induction grade BILLET (100*100 mm) at around USD 395/MT CPT Raxaul border. Around 3 rakes of booking reported by Durgapur & Odisha based manufacturers.

— Pig iron prices drop in northeast regions by INR 200-400/MT on improved supply and less demand supply. The offers of steel grade pig iron stood at INR 22,500-22,700/MT ex-Jajpur(Odisha), INR 23,600-24,000/MT ex-Durgapur, INR 23,300-23,400/MT ex-Bokaro(Jharkhand) & INR 26,000-26,200/MT FoR Ludhiana.

— India’s state owned steel maker under the Ministry of Steel – Vizag Steel had concluded the two lots (15,000 MT each) of billet export for 150*150 mm at around USD 400/MT, FoB.

FINISH LONG

Indian Finish long steel market observed moderate response in terms of trade prospects and as per weekly assessment rebar price range has been fluctuated by INR 100-400/MT in over all regions. Further the trade participants are assuming that, the supply movement might remain near to average level amid measured production level.

— Current trade reference rebar prices (12-25 mm) through midsized mills assessed at INR 29,500-29,800/MT Ex Raipur (central region) & INR 31,100-31,400/MT Ex-Jalna (western region).

Inline with this, the large scale mills are planning to increase finish long steel prices by INR 500-1,000/MT for Dec’19 deliveries on account of better demand & increase in raw material prices globally. In addition, healthy export orders is a key factor behind expected hike in domestic prices.

— Central region, Raipur based heavy structure manufacturers have maintained trade discount of INR 1,000-1,500/MT and Current trade reference prices stood at INR 33,400-33,800/MT (200 Angle) ex-work.

— Trade discounts in Raipur wire rod is currently at INR 1,200-1,500/MT and trade reference prices stood at INR 30,000-30,500/MT ex-Raipur and INR 30,800-31,000/MT ex-Durgapur, size 5.5mm.

— APL Apollo Tubes Ltd, has increased ERW Pipe price by INR 500/MT yesterday to INR 38,500/MT (USD 537); ex-plant in central India, Chhattisgarh.

— SAIL’s Central India based Bhilai Steel Plant (BSP) offered 5.5 mm wire rod at around INR 31,500/MT ex-work.

— RINL has concluded 14,500-15,000 MT wire rod export tender (whose validity till 22nd Nov’19) at around USD 430-435/MT, FoB India.

FINISH FLAT

Indian steel mills are planning to increase flat steel prices by around INR 500-1,000/MT (USD 7-14/MT) in Dec’19, as per trade sources. Surge in international prices, decent export bookings reported to Vietnam by Indian mills for Jan’20 deliveries have collectively pushed mills to go for price hike in Dec ’19.

Meanwhile in trade market, domestic HRC & CRC prices continue to witness uptrend on weekly basis over gradual improvement in trade inquiries.

Thus on weekly basis domestic HRC prices moved up by INR 500/MT. As per SteelMint’s price assessment, current trade reference prices in traders segment for HRC (IS2062, 2.5-8 mm) is at INR 35,250-35,750/MT ex-Mumbai and INR 34,800-35,000/MT ex-Delhi.

Inline domestic CRC prices moved up by INR 500-750/MT W-o-W basis. Currently, domestic CRC (0.9 mm, IS 513) trade reference prices are hovering around INR 39,500-41,000/MT ex-Mumbai and INR 39,000- 41,000/MT ex-Delhi. Prices mentioned above are basic, and extra GST@ 18% will be applicable.

Indian HRC export prices to Vietnam: Indian HRC export prices to Vietnam moved up by USD 10/MT in the beginning of this week. Latest offers from Indian mills stand at USD 470/MT, CFR Vietnam for Jan’20 shipments which was USD 455-460/MT CFR Vietnam.

Reference Prices as on 30th November 2019 (Week 48)

Products Regions Taxes Prices in INR/MT W-o-W
Pellet Fe 63%, 6-20 mm Ex-Durgapur GST at 5% Extra 5,850 +300
Iron ore 6-40 mm, Fe 65% Chhattisgarh Excluding Royalty, DMF & NMET. GST @ 5% extra 2,600 0
5-18mm, Fe 63% Odisha Ex-mines, Incld Royalty, DMF & NMET, GST extra 3,950 0
Fines Fe 63% Odisha Ex-mines, Incld Royalty, DMF & NMET, GST extra 1,950 0
Coking Coal, Premium HCC CNF India Prices in USD 147 -2
Silico Manganese (60-14) Ex-Raipur Excluding GST 57,000 +250
Scrap HMS (80:20) Ex-Mumbai GST at 18% Extra 21,200 +100
C-DRI 80 FeM Ex-Raipur GST at 18% Extra 17,600 +200
P-DRI 80 FeM Ex-Raipur GST at 18% Extra 16,700 +200
Pig iron Steel grade Ex-Raipur GST at 18% Extra 24,050 -50
Billet 125*125 MM Ex-Raipur GST at 18% Extra 26,250 -50
Rebar (12-25mm) Ex-Raipur (Medium Scale) GST at 18% Extra 29,700 0
Wire Rod (5.5 mm) Ex-Raipur GST at 18% Extra 30,500 +400
Structure ( 40 Angle) Ex-Mumbai GST at 18% Extra 32,700 -100
HRC (2.5-8 mm) Ex-Mumbai GST at 18% Extra 35,500 +250
CRC (0.90mm) Ex-Mumbai GST at 18% Extra 40,250 +750
HR Plate(5-10mm) Ex-Mumbai GST at 18% Extra 35,300 +175

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

Indian Export Reference Prices as on 30th Nov’19

Commodity Particular/Delivery Size and Grade Prices 1W 1M
Pellet FOB India 6-20 mm, Fe 64% 98 95 90
Scrap CNF India HMS(80:20), Europe 260 262 253
Billet FOB India 150*150, IS 2830 405 390 373
Sponge Iron CNF Bangladesh Lumps, FeM 80, India 285 288 275
Pig Iron FOB India Steel Grade 310 310 310
HRC FOB India 2.5-8mm, IS 2062 448 445 418

Prices in USD/MT
Source: SteelMint Research

 

Chinese Steel Market Highlights – Week 48, 2019

This week Chinese steel prices exhibited mixed sentiments. Nation’s HRC and rebar export offers moved up. Meanwhile coking coal offers remained stable on weekly basis however iron ore prices dropped towards the weekend.

Chinese spot iron ore prices fell during the week –
Chinese spot iron ore fines price opened up this week at USD 90.45/MT,CFR China.The prices have witnessed 1.5 months high as it was last witnessed at USD 92/MT towards mid of Oct 2019. However, the price dropped to USD 87.25/MT, CFR China towards weekend amid fall in inventory.

As per data compiled by SteelHome consultancy, iron ore inventory at major Chinese ports dropped slightly to 129. 4 MnT as against 129.5 MnT assessed towards the end of last week.World’s largest iron ore miner- Vale has completed decommissioning at one of the nine upstream tailing dams this week.The de-characterization at 8B dam located at Águas Claras mine, in Nova Lima began in May 17 and does not offer any risk of breach anymore.

Spot lump premium moved up on a weekly basis- This week spot lump premium witnessed at USD 0.2280/DMTU against USD 0.2100/DMTU towards last week. Amid sintering cuts demand for lumps remain supported.

Coking coal prices remain steady on weekly basis- – This week, the seaborne coking coal prices remain largely stable on weekly basis.However Chinese steelmakers continue to import amid competitive pricing as compared to domestic market.

Meanwhile the implementation of Chinese import restrictions may further extend beyond this calendar year remained uncertain since the fears to extend  until the Chinese New Year in late January can be a possibility.

The latest offers for the Premium HCC grade assessed at around USD 133.75/MT FoB Australia remain stable against previous week.

China domestic billet prices inch up on a weekly basis– Chinese domestic billet market was settled at RMB 3,450/MT, up RMB 10/MT against last week.The market sentiments in the country were reported stable in the country.Meanwhile nation’s billet export offers also witness uptick as domestic prices gained the momentum.

Chinese HRC export offers increase following uptrend in domestic prices-This week Chinese steel mills have further increased their HRC export offers by USD 10/MT on the back of limited supplies amid announced winter production curbs and robust demand prevailing in the domestic market.

Thus, Chinese HRC export offers have increased to USD 460-465/MT FoB China, in contrast with USD 450-455/MT FoB basis in the previous week.

Meanwhile, Chinese domestic HRC prices moved up by RMB 20-30/MT during the week to RMB 3,700-3,720/MT in the Shanghai region, which was RMB 3,670-3,700/MT in the preceding week.

Thus Chinese steel mills are enjoying decent demand in the domestic market, along with strengthening prices ahead of the winter season.Meanwhile mills are actively restocking the material ahead of new year holidays which pushed prices in upward direction.

Nation’s Rebar export offers increase on a weekly basis- This week, China’s rebar export offers ascended by USD 10-13/MT this week.

Hence, current Chinese rebar export offers stand at USD 475-483/MT FoB China in contrast with USD 465-470/MT FoB basis in the previous week.

However, the domestic rebar prices in eastern China slumped by RMB 70-80/MT to RMB 4,010-4,040/MT as compared with RMB 4,080-4,120/MT a week ago over ongoing winter season.

Shagang Steel lowered scrap purchase price twice – Eastern China’s largest private ferrous scrap consumer and EAF steelmaker – Shagang Jiangsu Steel group has announced its 2nd price lowering in a week, cutting down its bids by RMB 30/MT (USD 4) for all grades of domestic steel scrap procurement, with the new prices effective from 29th Nov’19.

As per updates, Shagang Steel is paying RMB 2,730/MT inclusive of 13% VAT for HMS (6-10 mm thickness) delivered to headquarters works situated in Zhangjiagang north of Shanghai in China.

Chinese Steel Market Highlights – Week 48,2019

Particulars Currency Current
Price Per MT
1 W 1 M
Spot Iron Ore Fines Fe 62%,
CNF China
USD/MT 87 88 85
Met Coke, 64%, FoB China USD/MT 281 281 286
Premium HCC, FoB Australia USD/MT 134 136 148
Premium HCC, CNF China USD/MT 145 149 162
Billet, FoB China USD/MT 493 486 475
Domestic billet prices RMB/MT 3,450 3,440
Domestic Rebar Prices
(ex-warehouse Eastern China)
RMB/MT 4,010-
4,040
4,080-
4,120
Rebar, FoB China USD/MT 480 469 450
Wire Rod, FoB China USD/MT 472 462 447
Domestic HRC Prices
(ex-warehouse Eastern China)
USD/MT 3,700-
3,720
3,670-
3,700
HRC, FoB China USD/MT 463 458 435
CRC, FoB China USD/MT 520 505 475
Plate, FoB China USD/MT 463 463 445

Source: SteelMint Research

 

Indian Low Grade Iron Ore Export Prices Stable

SteelMint in conversation with market participants learned low-grade fines (Fe 57/58) export price at around USD 55-57/MT stable W-o-W. However, no major deal was heard to have concluded.

Demand for low grade ore remains low amid rising Chinese production curbs leading to increased preference of for high-grade ore. As a result, iron ore fines prices have picked up this week to 1.5 months high to USD 90.45/MT, CFR China on 25th Nov 2019. However, the prices dropped to USD 87.25/MT, CFR China towards weekend. Besides, the rising steel margins have favored high grade ore over low grade.

However, market participants expect prices to stabilize or increase amid active restocking in China before winters.

As per data compiled by SteelHome consultancy, Iron ore inventory at major Chinese ports dropped slightly to 129. 4 MnT as against 129.5 MnT assessed towards the end of last week.

Fortescue Metals Group – world’s 4th largest iron ore producer increased sub-grade iron ore discount for SSF (super special fines) for Dec’19. SteelMint has learned from the market participants that FMG discount for SSF low-grade fines for the month of Dec’19 is increased to 15% from 12%.

 

Govt. of Odisha Extends Due Date for Phase-III Iron Ore and Manganese Mine Auctions

Odisha govt. extended bid submission due date for iron ore & manganese mine auctions – Phase III to 3rd Feb’20. The bidders shall be required to submit bids on or prior to 12:00 noon (IST) on 03 Feb’20.

Odisha govt. on 18th Oct’19 invited bids for grant of 9 iron and manganese ore mining leases. Few key mines listed in this round include- Netrabandha Pahar, Chandiposhi & Purheibahal.

Start date for the examination of the technical bids- Tuesday, February 04, 2020.

Announcement of technically qualified bidders as per the revised tender document – February 24, 2020.

Under Section 10 (B) of the Mines and Minerals (Development and Regulation) Act, 1957 and in accordance with the amended mineral (auction) Rules, 2015. Government of Odisha has identified 9 minerals blocks (7 blocks of Iron Ore, 1 block of Iron Ore and Manganese and 1 blocks of Manganese) for electronic auction. Accordingly, financial bids are invited in digital format only and technical bids are invited both in digital and physical format from eligible bidders.

 

Global Billet Market Overview: Week 48, 2019

This week global billet market was reported functioning. Billet market sentiments and offers from/in all the major markets have moved up. The major supporting factors for improved sentiments and increased trade functionality are China restrictions on scrap import supported by ongoing production curbs and increasing Turkey’s imported scrap prices.

Turkey’s imported scrap prices have moved up in recent deep-sea cargo bookings concluded in last few days. The prices stood stable for last couple of weeks over slow buying activities; however, the upcoming winter holidays in Europe and North America are expected to drive restocking at higher price in coming weeks for January shipments.

Iran- This was the second consecutive week, when Iran billet export market reported trade active. The country booked around 40,000-50,000 MT billets to China at USD 410/MT CFR levels and the shipment is scheduled for Jan’20. This deal has marginally raised the country’s billet offers by USD 5/MT. SteelMint assessment for Iranian billet are standing at USD 375/MT, FoB Iran. As was foreseeable by marketers, the scrap import restrictions in China are driving the billet exports from Iran which is being supported by Turkey’s imported scrap prices.

CIS – This week, billet export offers from CIS nations were reported stable and are standing at USD 385-390/MT, FoB Black Sea, identical as last week.

SE Asia – This week, SE Asia’s billet import market was reported trade functional for the successive week. The region is reported to book around 30,000 MT billets from an Indian private mill. According to SteelMint sources, the shipment is booked to Indonesia and the deal value is reported to be around USD 405/MT, FoB. With this deal, the billet import offers in region have marginally gone up, supported by Turkey’s scrap import prices.

SteelMint assessment for billet import offers in SE Asia is at USD 420-425/MT, CFR, up USD 5/MT against last week.

India: In recent deals concluded to SE Asia, prices for Indian blast furnace grade billet were assessed at USD 405/MT, FoB India and for induction grade billet, offers are around USD 395/MT, landed Raxaul border.

 Vietnam – This week, the country has resumed its billet export offerings, after October end. The billet export offers from the country are at USD 425, FoB, Vietnam.

China- Chinese domestic billet market was settled at RMB 3,450/MT, up RMB 10/MT against last week. The market sentiments in the country were reported stable in the country.

 

India: Ferro Silicon Demand Improves in the Northeast Region

Indian Ferro Silicon prices increased in line with the supply shortage in the major producing areas. Most producers are out of stock and that’s the main reason for the prices to be escalating. The inflating prices are the outcome of the supply-demand dynamics in the country. Many producers had to reduce their production quantities in the previous month due to bottomed out Ferro Silicon prices; this however tuned out to be advantageous for the producers as the supply shortage has turned the market and provided with some positive trend. A Ferro Silicon buyer shared with SteelMint that the logistics issue due to SIMS is now streamlined and there is no difficulty in ordering the material. The market is relatively active and the manufacturers have orders. Meanwhile, in the Chinese market, exports still remain affected, mainly due to high tariff restrictions and fierce international competition in the market.

In the domestic market, the prices from Bhutan increased significantly amid supply shortage and the current prices are at INR 64,000- 65,000/MT for 70% grade. Meanwhile, deals are being concluded at INR 64,000/MT in Guwahati. In the Export market, the demand remains tepid, however, the prices are unadjusted and hence the market remains stable.

On the future outlook, producers feel that the prices may remain stable for now as the demand is improving and the producers are low on inventory. Therefore, the turbulence in the supply-demand dynamics will govern the pricing of Ferro Silicon.