Weekly round-up: Semi-finished steel prices remain stable, flats edge up further

The domestic steel market saw a positive trend in prices during week 18 (29 April-04 May, 2024), as semi-finished steel prices edged up by INR 800-1,700/tonne (t). Domestic induction furnace finished long steel offers showed upward trends.

Iron ore and pellets

• BigMint's bi-weekly domestic pellet (Fe 63%) index, PELLEX, increased by INR 550/t w-o-w at INR 10,400/tonne (t) DAP Raipur on 26 April. Around 53,000 deals were recorded in the Raipur region in the last one week. The Raipur pellet makers Increased around INR 500/t in the pellet offers this week after a sharp increase in the Sponge and finished steel prices.
  
  
• NMDC auctioned over 223,000 t of iron ore from Chhattisgarh on 2 May'24. From Bacheli mines, around 17,200 t of DR-CLO (10-40 mm, Fe 67%) was booked at a premium of 1%, 17,200 t of ROM (10-150 mm, Fe 65.5%) was booked at the base price and 86,000 t of fines (Fe 64%) at a premium of 0.2%. However, 103,200 t of ROM (10-150 mm, Fe 65.5%) remained unsold from the Bacheli mines. Prices include royalty, DMF, and NMET.
  
  
• BigMint's weekly Indian low-grade iron ore fines (Fe 57%) export index remained stable w-o-w at $65.5/t FOB east coast on 2 May 2024. Two deals of a total of 105,000 t were recently heard for standard Fe 57% fines at $80-86/t CFR China from the east coast of India. The Chinese buyers remained away from the market due to the weeklong Labour Day holidays.
  
  
• BigMint's India pellet (Fe 63%, 3% Al) export index (FOB east coast) increased by $1/t w-o-w to $106/t on 1 May. The export market remained supportive last week following enhanced restocking activity by Chinese steelmakers ahead of the weeklong Labour Day holidays. Around 110,000 tonnes (t) (2 Supramax cargoes) pellet export deals were heard this week from the east coast of India at $120-122/t CFR China but not confirmed yet by the seller or buyer.
  
  
• Asia-Pacific Supramax dry bulk (50,000-55,000 t) freight rates for an iron ore vessel from the east coast of India to China rose by $0.5/tonne (t) w-o-w this week to $15/t on 1 May, as per BigMint's assessment.
  
  

Coal

• Australian premium hard coking coal prices dropped by 2% w-o-w to $240/t FOB and $257/ t CNF on 4 May as deals were concluded at lower level.
  
  
• RB1 (6000 NAR) grade coal prices dropped marginally w-o-w to $106/t FOB. However, RB3 remained stable w-o-w at $82/t FOB Richards Bay, South Africa.
  
  
• Portside prices of South African RB3 (4800 NAR) thermal coal at Vizag Port recorded at INR 8,400/t, drop by INR 100/t w-o-w.
  
  

Ferro Scrap

• This week, the demand for imported scrap surged as buyers encountered a shortage of domestic scrap alongside robust uptake of finished steel domestically. Notably, some rolling mills reported low inventories of scrap, prompting steady purchases of imported scrap.
  
  
• A spokesperson from a steel mill in south India said, "The domestic market is experiencing a temporary scarcity-driven uptick. Internationally, prices remain steady, with imported scrap currently priced lower than local scrap. With domestic scrap supplies dwindling, imports, which constitute 30-40% of our supply, have become essential. We are steering clear of purchases from the UK, the US, and the EU due to higher freight costs, preferring destinations like Hong Kong, Australia, and South America."
  
  
• On a weekly average basis, shredded scrap offers from Europe saw a slight decrease of $1/t w-o-w to $425/t CFR Nhava Sheva, while offers from the US increased by $2/t to $421/t CFR.
  
  
• HMS (80:20) offers from Europe averaged $406/t CFR Nhava Sheva, up $1/t w-o-w.
  
  
• Notably, approximately 13,000 t of shredded scrap were booked from the US, UK, Europe, and Australia during the week within the range of $415-425/t CFR followed by 4,000 t of HMS 1 from Latin America, South Africa, and Bahrain at $380-422/t CFR, and approximately 1,000 t of HMS (80:20) from West Africa at $405-415/t CFR.
  
  

Ferro Alloys

• Silico Manganese: Silico manganese prices in India shot up by around INR 21,250/t ($255/t) to INR 92,800-95,600/t ($1,113-1,147/t) exw across major markets such as Raipur, Durgapur, and Vizag. Panic buying amid a hike in manganese ore prices, both in the domestic and global markets, lifted offers.
  
  
• Ferro manganese: Ferro manganese (HC70%) prices headed north w-o-w by INR 1,500/t ($42/t) and INR 2,900/t ($32/t) in Raipur and Durgapur, reaching INR 74,000/t ($887/t) exw, and INR 74,500/t ($893/t) respectively.
  
  
• Ferro Silicon: Indian ferro silicon (FeSi:70%) prices rose by INR 1,450/t ($17/t), settling at INR 100,600/t ($1,207/t) exw-Guwahati on 3 May, up by INR 2,400/t ($29/t). Meanwhile, Bhutanese prices were also up by INR 500/t ($6/t), reaching INR 99,700/t ($1,196/t) exw. Bhutan's offers were slightly up amid good export realisations.
  
  
• Ferro Chrome: Prices of Indian high-carbon ferro chrome (HC60%, Si:4%) inched up by INR 100/t ($1/t) on 3 May, settling at INR 107,900/t ($1,294/t) exw-Jajpur. After OMC's and Vedanta-FACOR's auctions last month, prices have not moved up very significantly.
  
  

Semi-Finished

• Indian semi-finished steel prices increased, as per BiglMint assessment. Domestic billet prices increased sharply by INR 800-1,700/t across key markets, with a major increase of INR 1,700/t seen in the Chennai market. Similarly, sponge iron prices in all key locations also increased significantly by INR 400-1,150/t, with a major increase of INR 1,150/t seen in the Ramgarh market.
  
  
• SAIL-Rourkela Steel Plant (RSP) held an auction for 4,000 t of steel-grade pig iron on 2 May'24. The entire quantity was booked at an average price of INR 41,400/t exw.
  
  
• Tata Metaliks increased pig iron (both basic and foundry grades) prices by INR 1,500/t ($18/t) due to short supplies and robust demand.
  
  
• NMDC's steel plant in Nagarnar, Chhattisgarh, conducted a steel-grade pig iron auction for a total of 12,000 t on 30 April. The total quantity was booked at an average price of INR 41,100/t.
  
  
• SAIL-Rourkela Steel Plant held an auction for 5,500 t of steel-grade pig iron on 27 April. 3,800 t was booked at an average price of INR 40,150/t exw.
  
  
• Indian DRI (Direct Reduced Iron) export offers decreased by approximately $5-6/t, reaching $403/t on CPT Raxaul, and $406/t on CPT Benapole.
  
  

Finished-long steel

• IF Route:India's induction furnace route finished long steel prices witnessed an uptick in prices w-o-w. Average spot trades were observed in the market amid constant fluctuation in prices which turned buyers cautious before making bulk procurements. However, sellers maintained higher offer levels owing to the rising prices of scrap, sponge iron and steel billet. As per the participants, a similar trend might continue in the near-term.
  
  
• On a weekly basis, in rebar steel prices sharply increased by INR 500-1,900/t across the regions as per BigMint assessment shows.
  
  
• The trade reference price of Fe 500 grade rebar manufactured via the IF route for 10-25 mm size was assessed at INR 47,400-47,800/t exw Raipur, INR 52,100-52,600/t exw Jalna.
  
  
• Trade reference price of heavy structural steel for base size 150mm channel stands at INR 49,600-49,900/t exw Raipur.
  
  
• BF-rebar: Trade-level BF rebar prices increased w-o-w by INR 1,200-2,000/t across markets as some Tier-1 mills announced hike in list prices by INR 1,500-2,500/t for early-May dispatches, sources informed. There was a shortage of material of certain sizes in the market due to maintenance being undertaken by some mills last month.
  
  
• Rebar prices (12-32mm, Fe500D) in the trade segment increased by INR 1,500/t w-o-w to INR 57,800/t exy-Mumbai. Prices are exclusive of GST at 18%.
  
  
• In the projects segment, prices were hovering around INR 57,000-57,500/t FOR Mumbai. Demand from end-users was need-basis only considering the price volatility.
  
  

Finished flat steel

• Trade reference prices of wire rod hovering at INR 48,300-48,800/t ex Raipur.
  
  
• Trade-level hot-rolled coil (HRC, 2.5-8mm / CTL, IS2062, Gr- E250 Br.) prices increased to INR 53,500-54,500/t exy-Mumbai towards the weekend. CRC (0.9mm / CTL, IS513, Gr-O) prices hovered around INR 60,500-61,500/t exy-Mumbai, excluding GST at 18%. The prices mentioned above exclude GST at 18%, and are for cut-to-length (CTL) form. (INR 1 = USD 0.0119718 ; USD 1 = INR 83.5293)
  
  
• Furthermore, mills have declared an increase of INR 1,000-1,500/t in their list prices of HRC and CRC.
  
  
• Several steel mills in India undertook strategic maintenance activities in April. This included a 15-day shutdown at a hot strip mill (HSM) and cold rolling mill (CRM) of a private producer, according to industry sources. The shortfall in CRC is estimated at around 90,000 t, over the 11 days' timeline from 26 April, informed sources.
  
  
• The domestic traders' market is characterised by need-based procurement, with buyers making smaller, immediate purchases tailored to their specific requirements. This trend coincides with distributors raising their offers due to supply constraints.
  
  
• India's exports of bulk HRC and plates are slowing down, as per the vessel line-up data maintained with BigMint. Imports, however, continued to edge closer to the previous month's level.

  BigMint's weekly assessment of HRC (SAE1006) export remained unchanged at $560/t FOB east coast India.