Indian Steel Market Highlights, Week 38
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Indian Iron & Steel market remained downtrend during the Week-38 (11-17 Sep), as the prices dipped owing to lack of domestic demand.
During the week prices of Semis & Finished steel products fall approximately INR 500-1,000/MT (USD 8-15) in across major Indian markets. Further the flat steel offers were also corrected in the same ratio for September deliveries.
Raw Material: NMDC (C.G.) Iron ore lump auction witnessed higher bids by INR 540/MT. West India based steel mills actively participated owing to costlier imported lump and high domestic pellet offers.
Iron ore dispatches from Odisha's Serajuddin Mines (Odisha’s 2nd largest merchant iron ore producer) have been suspended temporarily owing to physical stock verification.
Jindal Steel & Power resumed offering pellets in domestic market in limited quantities at INR 5,300/MT (loaded to wagons at Barbil). Its recent export tender fetched bids above market expectation at USD 119/MT, CFR China.
In the week imported scrap offers remains stable. Currently, price assessment for HMS 1&2, Dubai origin are at USD 315-320/MT, CFR Nhava Sheva port. While, domestic HMS (80:20) scrap prices slip by INR 500-700/MT are assessed at INR 21,000/MT (ex-Mumbai).
Coking Coal: Australian Coking Coal sellers have marginally lowered their export offers in view of the steel makers in China halting imports of the coal as the prices became unbearable for them. However, demand for the coal in China, the largest consumer of the coal, is to remain firm as the steel mills are running at high operational rates. Offers for the Premium HCC was marginally lower at USD 208.75/MT FoB Australia.
Semis Finished Steel: On weekly basis, domestic sponge prices slipped by INR 400-800/MT owing to low purchase by domestic EAF/IF following price corrections in billet by INR 1,000/MT.
Recently, Vizag Steel concluded 20,000 MT bloom (150*150 mm, IS 2830 C20 MMN GR A) for October end delivery at around USD 515/MT, FoB India which is up by USD 35/MT than the last export tender during Jul’17.
In the week, Pig iron export prices in India have crossed 3 years high level on recent conclude tender by MMTC on behalf of NINL for export of 30,000 MT. According to market participants the tender settled around USD 380/MT, FoB India.
Meanwhile, Indian domestic pig iron market witnessed low trade activities due to decline in steel prices.
Finish Long Steel Market: With decline in semis market the Finished long offers also plunged by INR 500-800/MT on weekly basis in Rebars, Wire rod and Structure offers. However, no major price movement seen by Large players in the same duration.
Flat Steel Market: Domestic flat steel prices in few major markets witness decline this week by INR 500-1,000/MT in traders market post steep hike of INR 2,000/MT witnessed in the first week of Sept’17. However, major steel manufacturers have kept the domestic flat steel prices unchanged.
Sluggish demand and import bookings have been made from South Korea in past two weeks has resulted to fall in domestic prices in traders market.
Indian Raw material and Finished Steel reference Prices as on 16 Sept (Week 38)
| Products | Regions | Taxes | Prices in INR/MT | W-o-W |
| Pellet Fe 63%, 6-20 mm | Ex-Barbil,Loaded to wagon | GST at 5% Extra | 5,200 | + 350 |
| Iron ore Fe 62%, 10-30 mm | Joda loaded to wagon | Incld Royalty, DMF & NMET, GST at 5%Extra | 3,750 | 0 |
| Coking Coal, Premium HCC | CNF India | Prices in USD | 222.3 | 0 |
| Scrap HMS (80:20) | Ex-Mumbai | GST at 18% Extra | 21,000 | - 600 |
| C-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 18,000 | - 700 |
| P-DRI 80 FeM | Ex-Raipur | GST at 18% Extra | 16,700 | - 700 |
| Pig iron (Steel grade) | Ex-Raipur | GST at 18% Extra | 25,800 | + 300 |
| Billet 125*125 MM | Ex-Mumbai | GST at 18% Extra | 27,000 | - 1,000 |
| Rebar (12mm) | Ex-Mumbai (Medium Scale) | GST at 18% Extra | 30,500 | - 600 |
| Wire Rod (5.5 mm) | Ex-Raipur | GST at 18% Extra | 31,900 | + 200 |
| Structure ( 40 Angle) | Ex-Mumbai | GST at 18% Extra | 31,500 | - 700 |
| HRC (2.5-8 mm) | Ex-Mumbai | GST at 18% Extra | 39,500 | - 500 |
| CRC (0.90mm) | Ex-Mumbai | GST at 18% Extra | 43,500 | - 1,000 |
| HR Plate(5-10mm) | Ex-Mumbai | GST at 18% Extra | 38,500 | - 1,000 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices
| Commodity | Size and Grade | Prices | 1W | 1M |
| Pellet | Fe 64% | 113 | 112 | 95 |
| Billet | 150*150 mm | 520 | 514 | 493 |
| Pig Iron | Steel Grade | 380 | 360 | 345 |
| HRC | 2.5-8mm, IS 2062 | 590 | 590 | 575 |
Source: SteelMint Research
