Semi-Finish & Finished Steel Review
06 May 2013
India: Long steel market continue to look for buyers
Table 1. Sponge Iron ore Sponge Iron ore as on City 1st May 15th April Change (%) Raipur 19,000 20,100 -5% Rourkela 17,700 17,900 -1% Durgapur 19,600 20,500 -4% Hyderabad 19,900 Bellary 17,200 18,700 -8% Note: Basic Price. ED and taxes extra.
Monthly Average Price April'13 March'13 Feb'13 19,700 20,100 20,200 17,900 18,200 18,300 20,200 19,800 20,200 19,800 19,700 19,300 -
Indian Sponge Iron at 2Year low; current prices at $320-350/MT (Ex Works) Indian sponge iron industry seems to be getting into a consolidation stage. Restricted supply of Iron ore in Indian market, rising power and rising imports of ferrous scrap.
There is nothing much to cheer for sponge iron manufacturers based in India. Data shows that sponge prices have dropped almost 2-years low; experts blame that many sponge manufacturers are using low grade iron ore, which makes their quality inferior. Above that, rising power tariffs are making induction furnaces switch to scrap. Current prices are in the range of Rs 17,500-19,000/MT (basic) which was last seen in February 2011. Indian Sponge iron (DRI) production stood at 23.3 MnT in 2012-2013: Sponge iron production in India stood at over 23 MnT in FY 2013 against an installed capacity of 35 MnT, according to Joint Planning Committee (JPC) annual report. According to data, production has increased over last year (2011-2012) which according to Sponge Iron Manufacturers Association stood at 20.5 MnT. India still remains the largest sponge iron manufacturer in the world. Total Production - 23.3 MnT Captive Consumption - 3.5 MnT Available for Sale - 19.8 MnT Table 2. MS Ingot and Billet
SNAPSHOT Increased power tariffs inIngot price as on Billet Price as on crease the prices but low de1st May Apirl (Avg) March (Avg) 1st May Apirl (Avg) March (Avg) mand again pulled down prices 31,900 32,500 32,300 32,600 33,000 32,800 to same level
City Mandi Raipur 27,700 Durgapur 28,000 Rourkela 27,600 Mumbai 29,900 Chennai (Inc. ED) 35,000 Gzb 31,300 Note: Basic Price. ED and taxes extra.
28,500 28,700 27,700 30,900 35,000 31,900
28,700 28,500 28,100 31,300 34,000 32,000 -
28,400 28,500 28,000 30,100 35,500
29,100 29,200 28,300 31,100 35,600
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29,100 29,100 MS Ingot/Billet prices are 28,600 below March Average price 31,500 34,300
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Prices expected to remain at current levels
1st to 15th April View: Increased Power charges offer manufacturers to hike steel prices. Power charges in Punjab increase 9-12%, which resulted improvement of Rs 600-700/MT in Ingot and re-bar prices Billet manufacturer based at Andhra Pradesh were offering their material Rs 1,000/MT higher during this period Ingot manufacturer hiked offers by Rs 600-800/MT on increased power and freight charges that supported such price increase. Improved Ingot and Billet prices push up re-bar prices Due to strong purchases by other states, Raipur and Durgapur offers surged by Rs 700-1000/MT
Semi-Finish & Finished Steel Review
06 May 2013
15th April to 2nd May: Mandi Gobindgarh prices corrected by Rs 700-1,000/MT Rourkela re-bar offers reduced around Rs 800-1,200/MT TMT manufacturers in Durgapur cut offers by Rs 1,500-1,600/MT Prices in Mumbai consistently fell due to on going LBT strike and slow construction activities Table 3. Re-Bar Price 12MM Re-bar as on City 1st May 15th April Change (%) Mumbai 34,000 35,000 -2.86 Raipur 32,200 33,600 -4.17 Durgapur 37,800 39,000 -3.08 Chennai 40,500 41,000 -1.22 Hyderabad 34,000 35,200 -3.41 Muzafarnagar 34,800 36,200 -3.87 Mandi 36,400 37,100 -1.89 Note: Basic Price. ED and taxes extra.
Price Inclusive of all taxes Average Price April'13 March'13 Feb'13 1st May 34,600 35,250 35,800 40,113 33,200 32,650 33,000 37,989 38,600 37,900 38,600 37,800 40,800 39,900 39,300 42,525 35,000 35,200 35,300 40,113 35,600 35,300 35,200 41,056 36,800 36,400 35,900 42,944
Market Trade Moment 5th April: Raipur supplied re-bar to Tamil Nadu, Kerala, Hyderabad and Chennai @ 32,600-32,800/MT (20mm Basic price) in large quantity 26th April: Billet manufacturers from Rourkela (Odisha) supplied material to Raipur @ 30,200/MT (Including all) 26th April: Re-bar manufacturers based at Raipur supplied to Bihar and Uttar Pradesh @ 32,300/MT (12mm Basic), due to high prices in Durgapur 27th April: Billet and sponge manufacturer of Orissa supplied material to Mandi Gobindgarh @ 28,150/MT (Basic) and 17,800/MT (Basic) respectively 27th -29th April: Ingot supplied to Mandi Gobindgarh from Gujarat @ 29,200/MT (Basic) and from Rajasthan @ 30,100/MT (Basic) 29th-30th April: Raigarh supplied Ingot @ 28,000/MT and billet @ 28,200/MT (Basic) to Uttar Pradesh 29th-30th April: Raigarh supplied Billet @ 28,600/MT (FoR price) to Raipur Structure Review: Poor demand build pressure on manufacturers to cut production and prices Following the ingot and re-bar trend, structure manufacturers in Hyderabad cut offers consistently. Prices fell by Rs 1,000/MT during the month. Many other plants also reduce their production In Durgapur, market players were trying to hold prices but in the end of the month prices dropped by more than Rs 500/MT, due to selling pressure. Mostly prices reduced for heavy structures of size 400 & 600 Beam Structure prices in Mumbai marginally improved in first two weeks but after that manufacturers dropped their offers continuously due to less trade activity over LBT (Local Body Tax) strike.
Finished Steel Iron Ore Market Insight Semi-Finish & Finished Steel Review
01 May 01 302012 May AprMay 2012 2012 06 2013
Raipur structure manufacturers were under pressure after demand slow down from Southern and Western region. In the beginning, demand from Southern India, Hyderabad and Chennai prompted Raipur manufactures to hike offers by Rs500-900/MT. But, later as demand vanished, manufacturers cut production level by 30-50% and offers by Rs 700/MT. Table 4. Structure Prices City 40,50 Angle 1-Apr 15-Apr 30-Apr Raipur 32200 33000 32000 Mumbai 35400 35500 34700 Durgapur 34000 34000 33500 34800 34000 Hyderabad 35000 NOTE: Basic prices taxes and loading extra.
1-Apr 32500 36200 34000 35500
75,100 Channel 15-Apr 30-Apr 33100 32100 36300 35500 34000 33500 34800 34500
1-Apr 32900 36600 34500 36000
125,150 I-Beam 15-Apr 30-Apr 33100 32500 36700 35900 34500 34000 34800 34500
19th-30th April: Structure Prices in Hyderabad fell by Rs 1,000-1,300/MT in April 28th-30th April: Due to selling pressure, structure offers at Durgapur reduced by Rs 500/MT 15th-29th April: After demand slow down from Southern region, structure manufacturers in Central India cut of-
fers by Rs 500-1,000/MT along with production cut by 30-50%.
Table 5. Freight Table from Major Station Loading / Unloading Indore Jabalpur Chennai Bangalore Raipur to 1800-2000 700 3500-3700 3200 Goa to 1500 1400 Durgapur to 2700-3000 Raigarh to Jaipur to Jalna to 800-1200 2200-2500 * Indicative frieght in INR
Delhi & NCR Region 2200-2700 1900 2000-2500 -
Mandi 1900 -
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