Monthly Archives: February 2020

India’s Vizag Steel Resumes Operations at its Closed Blast Furnace – Sources

Rashtriya Ispat Nigam Limited (RINL) state owned and one of the largest finish long steel producer based in southern region has successfully resume their blast furnace which was closed since Sep’19. It’s being learned through closed trade sources that it has resumed operations since last couple of weeks.

Currently RINL is producing around 15,000-16,000 MT hot metal per day as per sources. And it was also reported that company has witnessed increase in steel inventories by around 40,000-50,000 MT in Feb’20.

There are indications that few large mills might increase long steel prices by around INR 500-1,000/MT for March deliveries.

However dull demand was reported amongst the secondary rebar producers. In context to finished steel sales where consumption, it was registered at 4.45 MnT in Jan’20 which is stable against Dec’19 and certain measures have been initiated from banking sector to secure infrastructure projects as well as housing segment sales.

 

Weekly: Chinese Steel Market Highlights

The Chinese steel market witness improvement as the week commenced with the gradual control over Coronavirus disease.However towards weekend market sentiments exhibited sluggish on scarce domestic demand and lower HRC export offers on increased supply.Fluctuation in the future markets along with the slow resumption of the downstream industries and logistics sector resulted tight cash flows and weakening sentiments in nation’s domestic market.

 HRC export offers fell on a weekly basis. Rebar export offers also witness marginal decline. Iron ore prices fell with the weakening buying interest. However, spot pellet premiums gained while spot lump premiums remained consistent.Domestic billet prices gained the momentum and coking coal prices moved up this week.

Spot iron ore price drops as buying interest remains weak-
— Chinese spot iron ore prices opened up this week at USD 91.20/MT, CFR China and decreased to USD 83.9/MT, CFR China towards weekend amid falling interest for March loading cargoes.

— As per Mysteel data, Iron ore inventory at major Chinese ports dipped to 121.7 MnT for the week, down 2.2 MnT W-o-W.

Spot pellet premium picked up W-o-W-
— Spot pellet premium for Fe 65% grade pellets assessed at USD 32/MT, up against  USD 28.75/MT, CFR China last week. Pellet premium has picked up despite low margins.

Spot lump premium remains stable W-o-W-
— Spot Lump premium for the weekend witnessed at USD 0.2750/dmtu, stable on a weekly basis.

— As per sources, lump demand may loosen amid end of heating season towards mid-March and also due to reducing environmental concerns.

 Coking coal prices increases on weekly basis-
— Seaborne coking coal prices in the Asian market moved higher this week, after the conclusion of  tender for an Australian premium low-volatile.

— The latest offers for the Premium HCC grade are assessed at around USD 162.75/MT FoB Australia compared with USD 159.50/MT FoB basis a week ago.

— Trade sources in China anticipate the price of premium hard coking coal to continue rising in the short term.

Domestic billet prices rise on a weekly premise-
–This week, the country’s domestic billet market was settled at RMB 3,060/MT, ex Tangshan, including VAT, up RMB 50/MT against last week. The country’s market sentiments are improving but with buoyancy.

 Chinese HRC export offers remain volatile this week-
— The Chinese HRC export offers have remained volatile and fell towards the weekend on bearish sentiments prevailing in the domestic market

 — The HRC export offers stood at USD 465-470/MT FoB China towards the end of the current week compared with USD 475-485/MT FoB basis at the beginning of the week.

— Meanwhile, prices in the domestic market fell by RMB 20/MT to RMB 3,480-3,500/MT (Eastern China) as compared to RMB 3,500-3,520/MT (Eastern China) a week ago.Thus increase in supply and slow demand in the domestic market resulted in falling HRC prices this week.

Rebar export offers remain range-bound-
–The current week Rebar export offers stood at USD 440-445/MT FoB China and remain largely stable since last few days.However Chinese rebar export offers still remains competitive as compared to other exporting nations.

 –Meanwhile, the domestic market price weakened by RMB 50/MT and stood at RMB 3,370-3,400/MT (Eastern China) as compared to RMB 3,420-3,450/MT (Eastern China) in the preceding week.Also it is anticipated that prices will fall further until construction activity resumes completely.

Particulars Currency Current
Price Per MT
1 W 1 M
Spot Iron Ore Fines Fe 62%, CNF China USD/MT 84 92 83
Met Coke, 64%, FoB China USD/MT 296 303 302
Premium HCC, FoB Australia USD/MT 163 158 153
Premium HCC, CNF China USD/MT 173 169 163
Billet, FoB China USD/MT 398 427 481
Domestic billet prices RMB/MT 3,060 3,010
Domestic Rebar Prices
(ex-warehouse Eastern China)
RMB/MT 3,370-
3,400
3,420-
3,450
Rebar, FoB China USD/MT 442 440 472
Wire Rod, FoB China USD/MT 462 467 487
Domestic HRC Prices
(ex-warehouse Eastern China)
USD/MT 3,480-
3,500
3,500-
3,520
HRC, FoB China USD/MT 465 470 503
CRC, FoB China USD/MT 513 510 545
Plate, FoB China USD/MT 466 458 495

Source: SteelMint Research

 

Indian Low-Grade Iron Ore Fines Export Prices to China Fall

Indian low-grade iron ore fines export market moved down this week. SteelMint’s assessment has decreased this week by USD 3/MT to USD 54-56/MT, CFR China as against last week’s assessment at USD 57-59/MT, CFR China. Price fall is the reflection of weak demand and a sharp decline in global spot iron ore prices in China.

As per reports of credible sources, Chinese mills are looking to reduce hot metal production amid falling demand and increasing steel inventories.

At the beginning of this week, major iron ore miners and traders from Odisha concluded export deals for iron ore fines (Fe 58/57) at USD 59-60/MT, CFR China for Apr’20 shipments. But towards the end of the week export offers moved down.

Spot iron ore prices decreased sharply W-o-W-: Chinese spot iron ore prices decreased by USD 8/MT this week to USD 83.9/MT, CFR China against USD 92/MT, CFR China a week before.

 

Weekly: Global Ferrous Scrap Market Overview

Turkey: Turkish market for imported scrap remained silent this week, with no bulk bookings getting concluded, after very active trades in the previous 3 weeks.

After around 33-35 bulk cargoes for March shipment being booked in the month, Turkish mills are in no hurry for April shipment bookings, and put pressure on sellers by bidding at significantly lower price levels than the last deal’s price, to pull the workable price down

SteelMint’s assessment for HMS 1&2 (80:20) from USA stands at around USD 279/MT CFR Turkey , almost at same levels as closing of last week, while assessment for European origin stand at USD 273-274/MT.

 Japan: Japan’s Tokyo steel has lowered its scrap purchase price by JPY 500/MT (USD 9) at its Kyushu works in the western region and kept price unchanged for the other four works. After the said price cut, the company is now paying JPY 19,500/MT (USD 177) for H2 scrap delivered to its Kyushu works, while the price for H2 delivery to Utsunomiya plant in the Kanto region and Tahara Plant in the Central region remain unchanged at JPY 20,000/MT (USD 182) and JPY 20,500/MT (USD 186) respectively.

South Korea: Japanese scrap offers to South Korea moved up sharply this week, majorly on strong bids from Taiwan for Japanese material. Japanese H2 scrap offers stand at JPY 25,000/MT FoB, against the JPY 22,000/MT levels in mid-Feb ’20. Korean buyers resisted the surge in offers with few bids for H2 being reported at JPY 24,000/MT FoB. Apart from Taiwan and South Korea, Japanese offers to Vietnam and SE Asia too have rebounded this week, with H2 to Vietnam climbing up by USD 10/MT and current assessed at USD 261-261/MT CFR.

China:  China’s Shagang Steel announced first price revision this week for their scrap purchase in the last 10 weeks, after last revision in mid-Dec’19,  cutting its bids by RMB 30/MT (USD 4) for all grades.

After the price cut, Shagang Steel is now paying RMB 2,670/MT (USD 380) 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 revision to RMB 2,700/MT on 9th Dec’19.

After tight scrap supply and restricted transportation due to novel Coronavirus outbreak in China for several weeks, supply finally resumed to some extent recently.

India – Offers for Imported scrap to India moved up over the week, while buying activities in containers dipped down slightly in comparison to good trades in the previous week. Market anticipates price correction at global levels before mid next month.

SteelMint’s assessment for Shredded 211 to India from USA and UK/Europe stands at USD 312-315/MT CFR Nhava Sheva, up USD 7-8/MT against last week. Later in the week, a deal of 1500 MT of Shredded was reported at USD 313/MT CFR Nhava Sheva, while present offers from most global suppliers stand at around USD 313-317/MT CFR.

Brazil origin HMS 1&2 (80:20) being sold in decent quantities at USD 292/MT CFR, while few trades of HMS 1&2 (80:20) from UK origin at around USD 290-293/MT concluded.   UAE origin HMS 1&2 (with ci gi) was sold in some quantities, at around USD 295-300/MT CFR depending on quality, while HMS 1(no ci gi) material is being offered at up to USD 305/MT CFR. South African HMS 1 hand-loaded material’s offers have shot up to USD 308-310/MT range.

A Bulk vessel was  booked by a Gujarat based steelmaker from a US (west Coast) supplier, comprising of 32,000 MT Shredded for USD 310/MT, at this week’s opening

Bangladesh: Offers to Bangladesh for imported scrap moved up further, even as most of the higher grades’ offer levels are almost unviable for the steelmakers on current domestic market position, thus keeping most buyers majorly disinterested and out of the market for the same.

Offers for UK/Europe origin Shredded scrap stands at USD 330/MT CFR, while P&S was offered at USD 325 levels from a variety of origins, although no buyers’ inquiries were reported at anywhere close to these inviably high levels.

HMS 1 from Australian origin was offered at USD 306-310/MT CFR, while Brazil origin HMS 1 was offered at around USD 300/MT CFR. HMS 1&2 (80:20) was offered at around 292-296/MT CFR, depending on origin.

Pakistan: Partly due to restocking necessities, Pakistan remained active for imported scrap bookings this week as well, with bookings at successively increasing prices getting confirmed every day. Shredded 211 offers from UK/Europe origins range from USD 315-320, with latest bookings getting concluded at USD 315-317 CFR Qasim. HMS 1 Super (no ci gi ) offers have shot up to USD 305/MT by the closing of the week.

A Bulk booking at the opening of the week was concluded at USD 306/MT for 26,000 MT of Shredded and USD 311/MT CFR for 4,000 MT of P&S, while market chatter about inquiry for another bulk booking is going on.

 

 

Weekly: Indian Steel Market Snapshot

During this week – 9 (24-29 Feb’20) Indian domestic trade activities remained subdued. The mid sized steel mills reported mixed response from the domestic buyers over uncertainty in the market. However primary mills have planned to hike finished steel prices for Mar’20.

As per SteelMint’s assessment, in these days the billet prices were more or less firm in central & eastern regions, while in remaining parts of the country it remained volatile by INR 300-900/MT. Although sponge iron prices declined by INR 100-400/MT.

In context to finished steel, the secondary long steel market registered price movement of INR 100-500/MT (USD 7) and flat steel prices in trade segment fell by INR 250-500/MT (USD 3-7).

IRON ORE and PELLETS

Odisha iron ore offers remains unchanged. SAIL (Steel Authority of India) has scheduled its next iron ore fines e-auction from Bolani and Barsua mines in 19th and 20th Mar’20 respectively. 100,000 MT fines will be put for auction from each mine.

— PELLEX remains stable at INR 6,700/wmt (DAP Raipur). Pellet makers from Raipur concluded around 10,000 MT pellet deal at INR 6,600-6,700/MT ex-plant this week. Raigarh based pellet makers increased pellet offers to INR 6,100-6,200/MT ex-plant.

— NMDC Donimalai pellet plant has resumed offering pellets after a gap of around five months. The company has quoted fresh offer Fe 64% pellets at INR 7,000/MT (FoT basis).

— Eastern India based pellet maker concluded a pellet (Fe 64% grade pellets with 3% Al) export deal at USD 120/MT, CFR China for March loading earlier this week. SteelMint Pellet export assessment for Fe 64% grade pellets with 3% Al at USD 119-120/MT, CFR China.

COAL

Seaborne coking coal prices in the Asian spot market moved higher this week, after the conclusion of a sell tender for an Australian premium low-volatile on Thursday.

Notwithstanding the despondent global steel market outlook coupled with softened domestic coke prices, an apparent dearth of Australian premium coking coal cargoes in the Chinese market has contributed to the higher spot prices. Trader sources in China anticipate the price of premium hard coking coal to continue rising in the short term. Nevertheless, prices for premium mid-volatile coking coal could drop if Chinese buyers deem considered them expensive.

— Latest offers for the Premium HCC grade are assessed at around USD 162.75/MT FOB Australia, USD 172.50/MT CNF China and USD 173.80/MT CNF India.

FERROUS SCRAP

Offers for Imported scrap to India moved up over the week, while buying activities in containers dipped down slightly in comparison to good trades in the previous week. Market anticipates price correction at global levels before mid next month.

— SteelMint’s assessment for Shredded 211 to India from USA and UK/Europe stands at USD 312-315/MT CFR Nhava Sheva, up USD 7-8/MT against last week. Later in the week, a deal of 1,500 MT of Shredded was reported at USD 313/MT CFR Nhava Sheva, while present offers from most global suppliers stand at around USD 313-317/MT CFR.

— Brazil origin HMS 1&2 (80:20) being sold in decent quantities at USD 292/MT CFR, while few trades of HMS 1&2 (80:20) from UK origin assessed at around USD 290-293/MT CFR. Australian HMS 1&2 (80:20) offers assessed at USD 290-295/MT CFR, witnessing buyer inquiries.

— UAE origin HMS 1&2 (with ci gi) was sold in some quantities, at around USD 295-300/MT CFR depending on quality, while HMS 1(no ci gi) material is being offered at up to USD 305/MT CFR. South African HMS 1 hand-loaded material’s offers have shot up to USD 308-310/MT range.

FERRO ALLOYS

— Silico Manganese prices fell amid an oversupply in both Raipur and Durgapur regions and overall weakness in Steel market.

— Ferro Manganese prices remained stable amid limited production and moderate demand in both domestic and export market.

— Prices of Ferro Chrome fell due to almost nil export. Smelters are waiting for the Chinese market to stabilize which was closed for quite long time now due to deadly corona virus.

— Indian Ferro Silicon prices remained stable amid short supply. Producers believe that the prices may increase in the coming weeks.

SEMI FINISHED

On weekly basis, Indian Semi finished (Billet) steel market observed volatility by INR 100-900/MT due to fluctuating demand, whereas Sponge iron offers declined by INR 100-400/MT W-o-W.

— Indian Sponge iron export prices to Bangladesh dropped further by USD 5/MT in recent deals of around 5,000 MT. The deal has concluded near to USD 282-283/MT CPT Benapole, equivalent to USD 295-300/MT CFR Chittagong.

— Indian billet export offers for induction grade (secondary mills) evaluated at USD 425-427/MT & by large scale mills (blast furnace grade) at around USD 445/MT CPT Nepal.

— RINL has invited an e-tender for the export of 40,000 MT Bloom and 20,000 MT Billets. Interested bidders can submit their bids till 14:00 hrs on 03 Mar’20.

— Punjipatra, Raigarh based steel manufacturers are facing problems of power cut by JPL. The plants are getting power supply of about 12 hrs (50%) per day.

— Jindal Steel has reduced steel grade pig iron offers by INR 200/MT W-o-W to INR 28,000/MT ex-plant, Raigarh, Central India.

— SAIL’s auction held on 26th Feb for 2,200 MT steel grade pig iron from its Rourkela steel plant, has received weak response. Only about 250 MT material have been sold on reduce base price by INR 300/MT to INR 27,500/MT EXW-Rourkela.

FINISH LONG

Indian Finish long steel market remained volatile due to regular price fluctuation in overall regions and dull buying inquiries urge trade associates to book limited quantity upon confirmed future bookings.

Market participants believe that trade volume will remain mild range and might get some selling pressure through medium and small scale mills in near term.

— Current trade reference rebar prices (12-25 mm) through mid-sized mills assessed at INR 33,000-33,200/MT ex-Raipur, INR 36,000-36,300/MT ex-Jalna & INR 35,000-35,200/MT ex-Chennai.

— Central region, Raipur based heavy structure manufacturers have maintained trade discount by INR 100-200/MT and trade reference price stands at INR 35,900-36,200/MT (200 Angle) ex-work.

— Trade discounts in Raipur wire rod is currently at INR 400-600/MT and trade reference prices hovering at INR 32,200-32,800/MT ex-Raipur and INR 32,300-32,800/MT ex-Durgapur, size 5.5 mm.

— Godawari Power and Ispat (GPIL) from Central India, informed that it has commenced commercial production in the Rolling Mill (4, 00,000 MT) and Iron Ore Benefication Plant (1, 00,000 MT) with effect from 25 Feb’20.

— About 5,500 MT (2 rakes) of wire rod export deals learned from Indian large scale mills at near to USD 525-530/MT CPT Raxaul border, Nepal.

FINISH FLAT

Indian HRC prices in the trade segment fell by around INR 250-500/MT W-o-W on slow off take in demand. Also, sluggish trades and weak consumer buying collectively pulled down prices in the domestic market.

Current trade reference prices for HRC (2.5-8 mm, IS2062) on a weekly premise stands at INR 38,000-38,750/MT ex-Mumbai, INR 38,250-38,500/MT ex-Delhi & INR 39,000-40,000/MT ex-Chennai. However, prices were stable in Delhi and Ludhiana markets.

The trade reference CRC (0.9 mm, IS 513) prices on a weekly premise assessed at INR 44,500-45,500/MT ex-Mumbai, INR 42,200- 45,000/MT ex-Delhi & INR 44,500-46,000/MT ex-Chennai. Prices mentioned above are basic and GST@ 18% will be applicable.

SteelMint in conversations with market participants learned that major Indian steel manufacturers are planning for another hike by around USD 500-750/MT for Mar’20. Sources claim that demand from OEM’s and projects has been decent however, there is selling pressure in the trade segment. Official price hike announcement is expected in the first week of Mar’20.

Reference Prices as on 29th February 2020 (Week 9)

Products Regions Taxes Prices in INR/MT W-o-W
Pellet Fe 63%, 6-20 mm Ex-Durgapur GST at 5% Extra 6,450 +100
Iron ore 6-40 mm, Fe 65% Chhattisgarh Excluding Royalty, DMF & NMET. GST @ 5% extra 3,200 0
5-18mm, Fe 63% Odisha Ex-mines, Incld Royalty, DMF & NMET, GST extra 4,650 0
Fines Fe 63% Odisha Ex-mines, Incld Royalty, DMF & NMET, GST extra 2,350 0
Coking Coal, Premium HCC CNF India Prices in USD 174 +4
Silico Manganese (60-14) Ex-Raipur Excluding GST 61,250 -1,250
Scrap HMS (80:20) Ex-Mumbai GST at 18% Extra 23,700 +200
C-DRI 80 FeM Ex-Raipur GST at 18% Extra 19,300 -400
P-DRI 80 FeM Ex-Raipur GST at 18% Extra 18,400 -350
Pig iron Steel grade Ex-Raipur GST at 18% Extra 28,000 -200
Billet 125*125 MM Ex-Raipur GST at 18% Extra 29,250 +50
Rebar (12-25mm) Ex-Raipur (Medium Scale) GST at 18% Extra 33,100 0
Wire Rod (5.5 mm) Ex-Raipur GST at 18% Extra 32,500 0
Structure ( 40 Angle) Ex-Mumbai GST at 18% Extra 36,100 +100
HRC (2.5-8 mm) Ex-Mumbai GST at 18% Extra 38,300 -450
CRC (0.90mm) Ex-Mumbai GST at 18% Extra 45,000 -250
HR Plate(5-10mm) Ex-Mumbai GST at 18% Extra 37,800 -500

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

Indian Export Reference Prices as on 29th Feb’20

Commodity Particular/Delivery Size and Grade Prices 1W 1M
Pellet FOB India 6-20 mm, Fe 64% 111 110 113
Scrap CNF India HMS-1&2, Dubai 298 290 275
Billet FOB India 150*150, IS 2830 400 397 418
Sponge Iron CNF Bangladesh Lumps, FeM 80, India 298 303 313
Pig Iron FOB India Steel Grade 330 345 340
HRC FOB India 2.5-8mm, IS 2062 498 503 538

Prices in USD/MT
Source: SteelMint Research

 

What happened in China’s GE Market this Week amid ongoing Epidemic?

China’s graphite electrode market turned temporarily stable this week with producers slowly resuming their work amid epidemic being brought under control. According to the market sources, there is no major movement in the domestic GE prices given the soft downstream demand and electrodes market being not fully operational.

The current prices of HP grade electrodes of size 450mm are being heard in the range of RMB 11,000 – 12,000/MT whereas that of UHP grade electrodes of size 600mm are in the range of RMB 27,000 – 29,000/MT.

While graphite electrode prices are temporarily stable, the current steel mills are affected by the market and there are not many transactions. If there is no obvious improvement in the downstream side, it is going to negatively affect the graphite electrodes prices.

In terms of raw materials, according to an electrode manufacturer, the price of petroleum coke has risen some time ago, but it had little effect on the electrode market and price. At present, the high price of petroleum coke has been reduced, and it is expected that it will not have a large impact on the electrode market in the future.

Electrification of Baofang Carbon’s GE production line completed

Amid the epidemic chaos in the country, few GE players are trying hard to accomplish their plans as per the scheduled timeline.

Last week, the 110 kV Xinzhuang-Ping’an power grid project started operation marking the successful electrification of Baofang’s Carbon GE production line located in Honggu Park, Lanzhou Economic and Technological Development Zone.

Baofang Carbon Material Technology is a joint venture between Baosteel Group and Fangda Carbon. It is scheduled to start operation in Lanzhou in 2020 with 100,000 tonne capacity of UHP grade electrodes per year.

 

Weekly: Global Billet Market Overview

The export offers from all the billet trading nations witnessed a marginal increase. However, no deals were reported during the week. Stability in global scrap prices and strong domestic demand in countries like Iran and India have backed the export offers to gain a marginal rise. Also, amid improving Chinese domestic billet demand, no distress in the billet import offers were witnessed in SE Asia due to offerings from China, unlike last week.

CIS-The billet export offers from the region witnessed a rise of USD 5/MT W-o-W amid increased global scrap prices. This week, billet export assessment from CIS nations were at USD 395-400/MT, FoB Black Sea.

Iran-The Iranian billet export offers witnessed a marginal increase amid active domestic demand. However, no export deals were reported during the week.

SteelMint’s assessment for billet export offers from Iran is at USD 390-395/MT, FoB Iran, up USD 5/MT against last week.

— After getting blacklisted from FATF, the visibility on the country’s billet export market was quite blurry as it has given an impression that export offers from the country could drop. But active domestic demand has managed to keep the offers supported. The country’s steel mills have limited allocation till the end of Apr’20 as they have to offer sizable quantities in the domestic market by the end of current Iranian Year (21 Mar’19-20 Mar’20).

India- Rashtriya Ispat Nigam Limited (RINL), a state-owned steel maker under the Ministry of Steel, has invited an e-tender for the export of 40,000 MT bloom and 20000 MT billets. The sizes for the same were reported to be, bloom; 150*150mm and 200*200mm, while that for billet were; 90*90mm and 65*65mm. The tender due date is 03 Mar’20.

SE Asia – SteelMint’s assessment for SE Asia billet import is at USD 410-415/MT, CFR identical as last week.

— The 5SP grade billet export offers from Vietnam were heard to have at USD 415/MT, FoB, up USD 5/MT against last week.

— This week, billet import offers in the SE Asian region remained stable. However, no deals were witnessed during the week. Stable global scrap prices have managed to keep the billet import sentiments balanced in the region. Also, amid improving the domestic billet market, no offers from China were spectated this week, which had disturbed the SE Asian billet market sentiments.

China-This week, the country’s domestic billet market was settled at RMB 3,060/MT, ex-Tangshan, including VAT, up RMB 50MT against last week. The country’s market sentiments are improving but with buoyancy.

Turkey  scrap prices remain stable

SteelMint assessment for the USA origin scrap HMS 1&2 (80:20) stands at around USD 280/MT CFR Turkey, identical to last week’s closing.

Global billet prices:

Assessment Currency Prices W-o-W
150*150mm, FoB India USD 395-405 =
130*130mm, FoB Iran USD 385-390 +5
125*125mm, FoB Black Sea USD 395-400 +5
Indian induction grade billet, CNF Nepal USD 420-425 +5

Source: SteelMint Research

 

India: NINL Raises Coke Offers for Mar’20

Nilanchal Ispat Nigam Ltd (NINL), one of the largest integrated iron and steel plant in Odisha, has increased offers for coke products formed in its coke ovens for Mar’20.

The demand for coke has seen resurgence lately, thus compelling the producers to hike their offers in order to yield adequate profit from the rising market. Apparently, after a nominal price cut witnessed in the previous revision, NINL has again raised the prevailing offers this month.

It is pertinent to note that the NINL’s offer for Low Ash Metallurgical (LAM) coke were placed reportedly higher than the same proposed for Nut coke in the earlier price revisions. However, the company has kept the same prices for both the coke products in Mar’20.

Consequently, the offers for LAM coke has been increased in the range of INR 100-1000/MT, while for Nut coke, offers have been raised in the range of INR 1300-2000/MT

NINL’s Coke Offers for Mar’20

Prices in INR/MT on Ex-Plant Basis
Exclusive of GST, Freight, other taxes

In the latest price revision, the company has introduced five quantity slabs, wherein highest price of INR 21000/MT was quoted for booking up to 3,000 MT. Bulk booking above 10,000 MT was offered at a price cut of INR 1300/MT, at INR 19700/MT.

NINL has specified that clubbing of quantity of LAM Coke and Nut Coke were not permitted, and the two coke products would be treated separately to compute the existing discount under different slabs.

Payment Terms: The buyers would have to pay 10% advance along with payment for 1,000 MT intended for booking separate coke products up to 6000 MT. For purchase above 6000 MT, they have to bear 10% along with payment for 2,000 MT.

Remaining quantity has to be paid within the validity of price circular i.e. till 8 Mar’20.

 

India: Ferro Silicon Supply in India may Face Severe Disruptions amidst Compulsory Certification

Major Ferro Silicon producers in Bhutan may face issue in supplying materials to Indian Steel companies due to the implementation of the compulsory certificate of Quality conforming to the corresponding Indian Standards. The Ministry of Steel has passed an order on 14th Feb 2020 to include the alloy under compulsory certification by April 2020. Although the order was passed earlier in July 2019, stating for its implementation on 9 months from date of publication of the order, most of the producers in Bhutan remained unaware of the order until earlier this week.

Expectations are that such a process will take around 9-13 months for completion as most of the producers have applied in February. The chances are that for the next two quarters the supply may get heavily affected. However, the steel companies in India are willing to shift their demand to the local smelters as the quantity required for the production of 1MnT of Steel accounts to just 600MT of Ferro Silicon. Meanwhile, producers in Bhutan will have to look forward to other countries for exports. Presently, 50% of the exports from Bhutan are to India. This may escalate the prices in Guwahati to irrational heights; the prices are already higher due to Charcoal and coal shortage.

The order stated the following main points:

1. This order may be called the Steel and Steel Products (Quality Control) Order, 2019.

2. It shall come into force on the date of its publication in the Official Gazette.

3. Every steel and steel products specified in column (3) of Table 1 shall bear the Standard Mark under a licence from the Bureau as per Scheme–I of Schedule–II of the Bureau of Indian Standards (Conformity Assessment) Regulations, 2018.

4. The Bureau shall be the certifying and enforcing authority in respect of the steel and steel products, goods and articles specified in this order.

5. This order shall apply to any amendment or revision made by the Bureau to any of the Indian Standards specified in Table 1 with effect from the date notified by the Bureau in this behalf.

6. Any person who contravenes any of the provisions of this order shall be punishable under the provisions of the Bureau of Indian Standards Act, 2016.

Click here for the Steel and Steel Products (Quality Control) Order, 2020 

 

PELLEX Remains Flat in Absence of Deals

PELLEX remain stable at INR 6,700/wmt (DAP Raipur). No pellet deal was reported in this publishing window.

Raipur based pellet makers kept the offers stable at INR 6,700/MT( Ex-plant); normalizing for freight to Raipur at INR 6,850/MT (DAP Raipur).

Raigarh based pellet makers increased pellet offers to INR 6,100-6,200/MT (Ex-plant).Towards the beginning of this week pellet deal reported to Raipur based manufacturers at INR 5,800/MT (Ex-plant) normalizing for freight to Raipur at INR 6,450-6,500MT (DAP Raipur).

Jharsuguda based pellet maker was reported offering pellets at INR 6,000-6,100/MT (Ex-plant).

SteelMint P-DRI Assessment (Feb 28, 2020) down by INR 200/MT W-o-W to INR 18,400/MT (Ex-plant) against INR 18,600/MT last week.

India Pellet Trades from other region-:

Bellary based major pellet maker has sold around 15,000 MT pellets at INR 7,000-7,100/MT (Ex-plant) in the last two-three days.

Click here to see SteelMint Pricing Methodology and Rationale documents.

To provide feedback/suggestions, please contact info@steelmint.com