Weekly round-up: Future bookings push up Indian semi-finished steel prices

The semi-finished steel prices moved up during week 4 (17 Jan'22 - 22 Jan'22). Domestic billet and sponge iron offers increased by INR 500-1,200/tonne across regions.

India's induction route finished long steel manufactures noticed average sales in the spot market, however prices remained hight due to future booking orders in hand with mill owners.

Indian finihed flats market remained little supportive throughout the week due to increase in inquiries. although, a slight rise in export offers also lent support to the domestic market sentiments.

Iron ore and pellet

• India's top iron ore miner NMDC conducted an auction on 19 Jan'22 for nearly 320,000 t of iron ore from the Kirandul and Bacheli mines in Chhattisgarh. The auction received good response for lumps, with the entire quantity of DR-CLO getting booked, sources told SteelMint. Bids for DR-CLO increased by around INR 1,580-1,670/t.
  
  
• SteelMint's weekly index for India's low-grade iron ore fines (Fe 57%) exports inched up $5/t to $41/t FOB east coast India. The iron ore export market has witnessed some improvement in sentiment during the past week following the upside in iron ore import prices into China.
  
  
• A leading eastern-India based pellet producer has concluded an export deal for 55,000 t of pellets (Fe 63%, 3.5% Al) recently. The deal was heard concluded at $172-173/t CFR China. Prices have increased by $5/t compared to levels prevailing earlier this week.
  
  
• SteelMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, stands at INR 11,800/tonne (t) DAP Raipur on 21 Jan'22, up INR 400/t against the last assessment on 18 Jan'22. Around 50,000 t of deals were reported in this publishing window.
  
  

Coal

• Australian premium low-volatile hard coking coal FoB prices rose by $44/t w-o-w basis amid tight supply.
  
  
• Weather-related concerns in Australia continue to weigh on market sentiments and offers in the spot market are limited. While demand has strengthened from ex-China market with the start of CY22.
  
  
• Latest prices for the premium HCC grade are assessed at around $429/tonne (t) FOB Australia and $450/t CNF India.
  
  
• S.African RB2 (5500NAR) portside deals were heard at INR 13,800-14,000/t for Feb delivery.
  
  
• South African RB1 prices for Feb'22 were assessed at $160/t, FoB basis. RB2 is being sold at a premium of $2-3/t over index while RB3 discount has been reduced to $8/t agaianst $17/t w-o-w basis.
  
  

Ferrous scrap

India's imported scrap trade maintained its momentum as a few HMS deals were concluded recently. Hike in domestic steel prices is likely to keep scrap buyers active in booking imported scrap. Buyers might book fresh slots of imported scrap in the coming months considering the price support in the semi-finished and finished steel segments, Steelmint learnt.

Recent deals and offers

• A decent quantity of HMS1 of UAE-origin has been sold at $485-490/t, CFR Nhava Sheva.
  
  
• In another deal, 500 t of South America-origin HMS was sold at $495/t, and 1,000 t of HMS from West Africa was traded at $480-485/t, CFR Chennai.
  
  
• Indications for UK-origin shredded are being heard at $545-550/t CFR. However, bids are lower by $5-10/t.
  
  

Ferro alloys

Indian ferro alloys market sentiment remained optimistic this week with manganese alloys and ferro silicon prices up marginally w-o-w, while ferro chrome prices jumped owing to improved buying.

• Indian silico manganese prices inched up by INR 750-2,100/t w-o-w owing to tight supply and healthy inquiries. According to SteelMint’s assessment on 21 Jan’22, prices of 60-14 grades are hovering around INR 99,250 �" 101,100/t exw-Durgapur and Raipur.
  
  
• Indian ferro manganese (HC70%) prices are hovering at around INR 99,250-101,600/t exw- from both Durgapur and Raipur, assessed on 21 Jan’22. Limited supply has increased prices by INR 2,700/t exw w-o-w from Durgapur.
  
  
• Indian ferro chrome prices jumped by INR 6,000/t w-o-w to INR 102,000/t exw-Jajpur owing to improved buying. The high cost of raw materials also supported producers to raise their offers.
  
  
• Indian ferro silicon (70%) prices inched up marginal due to price parity with Bhutan’s offer. Indian smelters are offering at INR 159,300/t exw while Bhutan’s offers are at INR 160,000/t exw.
  
  

Semi finished

Indian Semi finished steel prices increase as per SteelMint assessment, the domestic billet prices have increased by INR 600-1,200/t across region with a major increase of INR 1,200/t seen in Durgapur. Similarly, sponge iron prices also inclined by INR 500-1,000/t w-o-w.

• A state-owned domestic steelmaker had floated an export tender for spot sale of 30,000 t of BF blooms (150×150 mm, 3SP/4SP grade) was concluded at $608-610/t on FOB basis.
  
  
• A Jharkhand-based private mill conducted an auction for 2,000 t of steel grade pig iron on 18 Jan'22 was concluded at INR 43,900-44,000/t ex-plant.
  
  
• Vizag Steel, conducted an auction for 1,550 t of pooled iron on 18 Jan'22 & the entire quantity booked at INR 38,400/t exw.
  
  
• SAIL held an auction for 4,800 t of basic grade pig iron (in 48 units) on 18 Jan'22 from the Rourkela Steel Plant (RSP) & the entire quantity booked at a weighted average price of INR 42,350/t exw.
  
  
• Indian BF-route billet export offers to Nepal remains stable at around $650/t, while IF-route offers inched up by $10/t $655/t; CPT Nepal. The major buyers held booking this weed due to healthy purchases in the last one month.
  
  
• Indian sponge iron (lumps 100%, FeM 80%) export offers to Bangladesh rose by $15/to $495/t CPT Benapole, equivalent to $525/t CFR Chittagong. However, no fresh deals reported as buyers prefer to wait & watch on prevailing higher offers.
  
  
• Pig iron offers surged by upto INR 2,000/t, w-o-w and major hike of INR 1,500-2,000/t recorded in central & northern regions, followed by INR 400-500/t in eastern India. Strengthening coal, coke prices and a slight supply shortage in eastern region, resulted in a surge in offers.
  
  

Finished longs

India's induction route finished long steel manufactures, in this week observed moderate trade enquiries and transactions in the spot market with appropriate future booking orders in hand which supported them to keep prices high, but from mid of week trading activities little slow owing to consistent rising offers in market makes buyers very cautious and they hold their buying on higher prices. On a weekly basis, prices in rebar steel increased by INR 300-1,500/t w-o-w across the region. Prices also got supported by higher raw material cost, SteelMint learned.

• The trade reference price of Fe 500 grade rebar steel manufactured via IF route for 10-25 mm size is assessed at INR 48,400-48,800/t exw Raipur, INR 52,400-52,800/t exw Jalna.
  
  
• Trade discount given by Raipur based heavy structural steel manufacturers is in the range of INR 800-1,000/t and trade reference price of 200 mm angle stood at INR 54,500-54,900/t exw Raipur.
  
  
• Trade discounts given by Raipur based wire rod suppliers are hovering over INR 1,000/t and trade reference prices stood at INR 49,000-49,200/t exw Raipur & INR 50,000-50,200/t exw Durgapur, size 5.5 mm.
  
  

Finished flats

• The flat steel market sentiments witnessed further improvement this week with an increase in inquiries although conversion to sales were still slow. Also, a slight increase in export offers also lent support to the domestic market sentiments.
  
  
• Indian steel major, JSW had increased list prices for coated flat steel products earlier this week on account of increased cost of production. The hike in prices of producing thermal electricity and coating materials such as zinc and aluminium have pushed mills for this hike.
  
  
• Furthermore, Indian steel producers are in no pressure to sell HRCs in the domestic market as they have robust exports bookings for Feb'22 month and are now offering for March shipments. With this the export offers also increased for the key markets from India. SteelMint's India HRC (SAE1006) export index inched up by $2/t this week to $722/t FOB East coast.
  
  
• A few HRC export deals were also reported in the past 10-15 days with 30,000 t booked for Vietnam at $750/t CFR for Feb delivery. A decent 50,000-60,000 t HRC was booked for Europe while 10,000-20,000 t for Egypt for end-Feb'21 shipment, however, price levels could not be confirmed. Furthermore, 10,000 t was booked for Turkey at $770/t CFR for end-Feb'22 dispatch.