Some cheer for Indian steel prices towards the end of week: KATM Exclusive

6 November 2017

Semi steel saw some uptick towards the end of this week, with prices moving up by INR 100-300/MT, buoyed by some interest from the buyers. In northern India at Mandi Gobindgarh, the offers were reported around INR 30,000/MT ex-works for 125×125 mm, IS 2831 material. In Eastern region, the offers were reported around INR 27,400/MT ex-works, at Durgapur.

Sponge iron prices also saw similar hike in the week, which could be seen from increased number of inquiries. At Durgapur, C-DRI offers were trading around INR 18,200/MT ex-works (Mix, FeM 78%, +/-1), while P-DRI offers were reported at INR 17,400/MT ex-works (FeM 78%, +/-1).

Furthermore, Indian sponge iron export offer increase by USD 5-10/MT (W-o-W) due to hike domestic offers. The fresh offers are reported at USD 315-320/MT CPT Benapole port, Bangladesh.

Demand for finished steel was steady in the northern region where quiet conditions prevailed as the prices were seen moving in a narrow range in the absence of buying support and settled around previous levels.

However, towards the end of the week primary steelmakers including SAIL, RINL, Tata Steel, etc. reportedly raised their rebar prices by INR 500-1,000/MT for November deliveries. This uptick is attributed to the increase in semi steel and DRI prices.

Meanwhile, imported scrap offers in India saw increment of USD 10-15/MT this week, both for Shredded and HMS materials. Offers for Shredded scrap in containers now assessed in the range of USD 330-335/MT, CFR Nhava Sheva for both UK and Europe origins. HMS 1&2 (80:20) in containers for Dubai origin is now at the level of USD 305-310/MT, CFR Nhava Sheva.