Indian Steel Market Weekly Snapshot

During the week, prices of Semis & Finished long steel products down approximately by INR 400-1,200/MT (USD 5-17) in across major Indian markets. Further, the flat steel offers were also corrected by INR 500/MT W-o-W in traders market, while large manufacturers kept offers unaltered.

Iron ore & Pellets

NMDC has announced a price cut of about 10-12% (INR 300-465/MT) for Jan’19. Miner has slashed iron ore fines price by INR 300/MT and INR 350/MT for lumps.

-- Odisha’s second largest merchant miner- Serajuddin mine has cut its iron ore lump prices by INR 500/MT w.e.f 31st Dec’18.

-- Odisha Mining Corporation (OMC) - a state-owned miner has slashed iron ore fines by INR 100/MT from each mine for Jan 5th, 2019 e-auction as against the base price of the previous e-auction held on 05 Nov'18.

-- SteelMint learned from market sources that pellet prices in eastern & Central India have come under pressure amid successive price fall in Iron ore. Durgapur, eastern India pellet prices have moved down further this week to INR 5,700-5,800/MT against the beginning of this week of INR 6,000/MT.

-- As per market sources report to SteelMint, inquiries for Indian pellet from Chinese mills remained decent after New year holidays and trading is around USD 112/MT, CFR China levels for regular grade pellet with 3% alumina. Market participants are hopeful that prices expected to increase by USD 2-3/MT shortly.

Coal

Seaborne premium hard coking coal prices have continued to fall after the New Year break as trading activity remained muted in the Chinese market, though restrictions at some of the country’s northern ports are easing. Contrastingly, the 64 mid-vol coking coal prices have dipped but only marginally over the same period.

Chinese market participants still maintain their bearish outlook for now as buyers hold resistance to seaborne cargoes with ample supply of domestic materials in hand and high inventory levels at most steel mills.

Traders believe that the Chinese demand for seaborne coking coal is not expected to revive immediately unless the import offers come down further at competitive levels which might turn profitable for end-users.

Meanwhile, BHP Billiton Mitsubishi Alliance (BMA) has resumed operations – following a fatal accident on New Year’s Eve – at its Saraji open-cut metallurgical coal mine in the Bowen Basin, south-west of Mackay in Queensland, Australia.

Latest prices for the Premium HCC and 64 Mid Vol HCC grades are assessed at around USD 209/MT and USD 182.10/MT FOB Australia respectively. For Indian buyers, the above offers amount to USD 221.50/MT and USD 194.60/MT respectively on CNF India basis.

Scrap

Indian imported scrap market observed improved sentiments as against last week. Prices remained firm in minor trades reported, however, offers seem to be marginally corrected to encourage buying.Trade sources believe that inquiries and activities to gain momentum further next week.

-- SteelMint’s assessment for containerised Shredded from the UK and Europe stands at around USD 322-325/MT, CFR Nhava Sheva. Few trades for European Shredded were reported at around USD 325/MT, CFR basis.

-- Middle East origin HMS is being offered in the range of USD 320-325/MT, CFR and the assessment of West African HMS stands at USD 305-310/MT, CFR.

Semi Finished

On weekly basis, sponge prices fall by INR 300-1,000/MT on improved supply & limited response by EA & Induction furnaces. Inline Billet offers declined by INR 400-1,200/MT following poor off take in finished products.

-- The mid size mills export offers to Nepal hovering for Billet at around USD 445/MT & Wire rod at USD 538-540/MT, ex-mill, Durgapur - eastern India.

-- Indian Sponge iron export offers to Bangladesh for FeM 78-80 is hovering at USD 325-330/MT CPT Benapole (dry land port of Bangladesh & India) and USD 345-350/MT, CFR Chittagong.

-- Vizag Steel has issued an export tender of 30,000 MT basic grade steel making Pig iron for any country other than Nepal. The tender is due on 08 Jan'19 & the last date of delivery period shall be 28 Feb'19.

-- Jindal Steel has further reduced pig iron prices on falling steel prices. The latest offers reported for Steel grade Pig iron at INR 28,200-28,400/MT ex-plant, Raigarh & Panther shots (granulated pig iron) at INR 26,500/MT ex-Angul, Odisha. The company being offer bulk purchase discount of INR 200/MT.

-- Neelachal Ispat Nigam Ltd (NINL), India’s largest and state owned steel grade pig iron manufacturer & exporter has reduced pig iron prices by INR 500/MT (USD 7). The latest offers for Steel (N1) grade material are assessed at INR 27,400/MT (USD 391) & Foundry (N2) grade at INR 28,000/MT (USD 399); prices are excluding GST, ex-Cuttack, East India.

-- SteelMint's Pig iron export price assessment stood at USD 355-365/MT FoB India, USD 340-345/MT FoB Brazil & USD 340-350/MT FoB Black sea.

Finish Long Steel

Finished Long steel market seems bearish over limited demand in overall regions amid lessening raw material and the prices slump by INR 500-700/MT on weekly basis.

Market participants are assuming that, prices to remain pressure due to inappropriate demand and retailers/traders seem very cautious to book sufficient quantity owing to bullish trends.

-- Further, Raipur based Heavy structure manufacturers have lessened discount range to INR 500-600/MT and current trade reference prices at INR 40,900-41,300/MT (200 Angle) upon booking quantity.

-- Current trade reference rebar prices (12-25 mm) assessed at INR 36,600-36,900/MT Ex-Jalna & INR 34,600-34,900/MT Ex-Raipur. All prices mentioned above are basic & excluding GST.

-- Wire Rod trade discount offered by the manufacturers/suppliers in Raipur have stretched to about INR 1,000-1,200/MT, as per sources.

-- Indian large mills - SAIL has raised rebar prices gradually by around INR 500/MT, meanwhile the Vizag Steel (RINL) has kept offers unaltered for Jan'19 deliveries, as per sources. However the JSW Steel yet declare their prices for the current month, which are expected to be declare in coming week.

Market expects, the major mills soon to take 2nd price revision in Jan'19 as demand still sluggish which were expected to gain with the beginning of new year (Jan'19).

As per assessment the latest offers through the large mills for 12mm rebars hovering at INR 40,800-41,200/MT ex-Mumbai & INR 41,000-41,400/MT in Chennai; excluding GST of 18%.

Finish Flat Steel

Market sources shared with SteelMint that state owned steel mills - Steel Authority of India Ltd (SAIL) has rolled over HRC & CRC prices for Jan’19 deliveries.

Manufacturers HRC (IS 2062, 2.5-8 mm) price is around INR 44,000-44,500/MT (ex-Mumbai), CRC (0.9 mm, IS513) is around INR 49,500/MT (Ex-Mumbai). However mills are also offering considerable discounts and rebates over announced list prices to push buying.

Also other major steelmakers like JSW Steel,Essar Steel and JSPL have also roll over HRC & CRC prices for Jan deliveries today.

Meanwhile this week prices in the traders market continue to remain firm. Current trade reference prices for HRC (IS2062) 2.5 mm-8 mm is around INR 42,000-42,500/MT (ex-Mumbai) and INR 42,300-42,400/MT (ex-Delhi). The prices for CRC (IS513) 0.9mm is hovering in the range of INR 48,500/MT(ex-Mumbai) and INR 47,000MT (ex-Delhi) and INR 48,500-49,000/MT(ex-Chennai). The prices mentioned above are basic prices excluding GST@18% on cash payment basis.