Chinese steel make some gains; Indian steel prices trade in tight range: KATM Exclusive

China market

There was some uptick in the steel prices towards the end of the week. Billet prices in Tangshan jumped 50 yuan ($7.60) per tonne, on Friday. The 50% limit to sintering and pellet production ordered by the Chinese government has been enforced across Tangshan. This has also lent support to imported higher grade iron ore and other raw materials including coking coal.

China’s steel exports in September dropped 21% from the previous month to 5.14 million tonnes, the lowest level since February 2014, as per the data released by the General Administration of Customs.

Exports showed a decline of 42% year-on-year, as soaring Chinese domestic steel prices discouraged overseas sales. Imports at 1.24 million tonnes was the second highest level this year, and reversed a trend in July and August where imports dipped below the million ton mark.

Indian market

Recent data by Joint Plant Committee showed that India was a net exporter during the month of September. The exports of finished steel stood at 1.119 million tonnes in September, while imports stood at 810,000 tonnes. In contrast, JPC figures published in August showed that India had turned a net importer for the month of August, though cumulatively during April-August the country had maintained its net exporter status.   During the April-September period, exports stood at 4.852 million tonnes, while imports were 4.318 million tonnes.

Indian DRI and Billet prices fluctuated in a tight range due to bearish demand in long steel products. In Central India, the integrated plants offered Sponge P-DRI at INR 14,800 per tonne ex-plant at Raipur towards end of week. Durgapur based plants have slightly increase sponge & billet offers around INR 100 per tonne. The offers by the producers are reported at INR 16,100-16,200 per tonne for Sponge P-DRI & INR 26,400 per tonne for billets.

Moreover, the imported scrap offers to India recorded upside of $10-15 per tonne week-on-week, as the offers for HMS 1&2 (80:20) Dubai origin containers stood at $300 per tonne and Shredded scrap USA origins are at $325-330 per tonne, CFR Nhava Sheva.