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INDIAN
STEEL
MARKET
SCAN
Nov 2014
i RAW MATERIALS
ii SEMI FINISHED STEEL
iii FERRO- ALLOYS
iv FINISHED STEEL
Iron Ore
Sponge Iron
Silico- Manganese
Rebars
Pellets
Pig Iron
Ferro- Chrome
HR Coils
Scrap
Billet
Coal
iv CURRENCY
iv STATISTICS
China Iron Ore Fines (Fe 62)
The average price for Fe 62% spot
Iron ore nes in Oct'14 was USD
80/MT CNF China, which had fallen
by USD 2/MT in contrast to Sep'14
Prices in USD/MT CNF China
120
110
100
Cheaper global prices had increased
Indian Iron ore imports to 2.2 MnT
in Oct'14 against 0.8 MnT in Sep'14
90
80
70
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
NMDC Iron Ore Prices
NMDC had reduced lump prices by
upto INR 200/MT and kept nes
prices unchanged for Nov'14
5,000
Basic Prices in INR/MT
China's spot Iron ore nes prices are
expected to remain weak and may
increase India's Iron ore imports to
9-11 MnT in FY15
4,500
DuringQ2FY15,NMDC'sIronore
productiontouched6.4MnT,
registeringagrowthof 9%Y-o-Y
(5.9MnT)
4,000
3,500
NMDCmayincreasenespriceson
the backdrop of increasing scarcityin
domesticmarket
3,000
2,500
Apr-14
May-14
Jun-14
Jul-14
Fines (Fe 65)
Aug-14
Sep-14
Oct-14
Lumps 6-40 mm (Fe 65)
Basic prices excluding royalty and taxes
DecisiononJharkhand mining issue
willtaketimeowing toup-coming
state elections
Importsmaygoup,especiallybyTata
Steel
Iron Pellet Prices (Fe 63)
Albeit, consistent scarcity of nes in
the domestic market, economical
import offers restricted Indian
Pellet manufacturers to raise prices
9,500
Prices in INR/MT
8,800
8,100
Continued scarcity and increasing nes
prices will hit Pellet production. Pellet
prices may increase further
7,400
6,700
6,000
Apr-14
May-14
June-14
July-14
Aug-14
Sep-14
Oct-4
Prices are loaded into wagons at Barbil
Domestic Scrap (HMS - 80:20) Prices
Trading volume of domestic Scrap
remain affected on account of
elections & festive season
27,200
Prices in INR/MT
26,500
Prices in Mumbai had declined by
INR 1,500-1,900/MT in Oct'14 due
to poor demand of semi nish &
nished steel products
25,800
25,100
24,400
23,700
23,000
Apr-14
May-14
Prices: Ex Mumbai
Basic prices excluding Duty & Taxes
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Finished steel demand is expected to
remain moderate in Nov'14 due to
falling conversion spread. However,
seasonaldemandcanbeseeninlast
weekofthemonth
Source: SteelMint Research
Scrap prices witnessed steep fall of
USD 40/MT owing to tough
competition from Chinese steel in
export market and large import of
Chinese semi nish products by
Turkish mills
Turkey Imports Scrap (HMS 80:20) Prices
405
Prices in USD/MT
390
375
360
345
330
315
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Experts believe after witnessing sharp
fall in Scrap prices in a month's time, it
is difcult to project what will be the
bottom level. Though, consistency in
price in last week of October is a signal
of price stability for the month of
November
Australia Hard Coking Coal Prices
International Coking coal prices had
fallen slightly in Oct'14 owing to
import duty announced by the
Chinese government
Prices in USD/MT FOB
115
114
113
There is steady demand in the
global market and Chinese domestic
market
112
111
Price hike is anticipated in Nov'14
because of expected rise in demand
from China
110
109
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Non-coking coal prices remain
unaltered during Oct'14 on account
of low buying interest from the
global market
Indonesia 4200 GAR Prices
Prices in USD/MT FOB
41.0
Few Indonesian traders had
increased their offers for 4200 GAR
coal but there was no positive
response from Indian buyers
39.5
38.0
International prices are expected to
increase in Nov'14
36.5
35.0
Apr-14
May-14
Jun-14
South African RB
Jul-14
Aug-14
Sep-14
Oct-14
- 2 (5500 NAR)
South African Steam coal offers
have fallen slightly by USD 2-3/MT
in Oct14 on the backdrop of low
buying interest in the global market.
Offers were largely in the range of
USD 72-74/MT CIF India
69.0
66.0
Prices in USD/MT
Demand in India is likely to rise
because of coal blocks cancellation
and lack of domestic availability.
Currently, strong inquiries are coming
from Indian manufacturers viewing
December bookings
63.0
Prices are expected to increase in
coming month because of expected
rise in demand from domestic & global
markets. Prices are likely to be in range
of USD 74-76/MT CIF India
60.0
57.0
54.0
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Source: SteelMint Research
27,700
400
27,000
395
390
26,300
385
25,600
380
24,900
375
24,200
370
23,500
365
Apr-14
May-14
Jun-14
Domestic Prices in INR/MT
Jul-14
Aug-14
Sep-14
Oct-14
Export Prices in USD/MT
Domestic Prices in INR/MT
Domestic Pig Iron Prices & Export Prices
Domestic Pig iron prices fell by INR
300-400/MT in Oct'14. Prices are
not nding support despite tight
supply of Iron ore in the domestic
market
Steep fall in scrap prices additing on
to fall in prices of pig iron
Dull demand in the global market
added with poor response in
previous export tender made
RINL/NINL to postponed its export
tender
Exports Prices in USD/MT
Domestic Pig iron prices are likely to
correct slightly in Nov'14
Prices-Ex Raipur, Steel Grade
Domestic: Basic prices excluding Duty & Taxes
Export prices: FoB East Coast of India
Pig iron export market does not seems
to improve for another few months, as
continous fall in global Scrap prices
add with cheaper Chinese Billet
offered internationally is hampering
Pig iron export market
Sponge Iron(C-DRI) & Pellet Sponge (P-DRI)
24,000
23,500
Prices in INR/MT
23,000
22,500
22,000
21,500
21,000
20,500
20,000
19,500
19,000
Apr-14
May-14
Jun-14
Jul-14
Sponge Iron(C-DRI)
Aug-14
Sep-14
Oct-14
Indian Sponge iron prices are likely to
sustain at INR 19,500-21,500/MT. It
is also expected that prices will
uctuate by INR 500/MT in Nov'14
Pellet Sponge (P-DRI)
Prices: Ex-Raipur
Basic prices excluding Duty and Taxes
Billet Prices
Amid bearish sales in the local
market and increase in import of
nished steel as well as raw
materials (Iron ore & Scrap) had
corrected domestic MS Billet prices
by around INR 1,000-1,500/MT in
Oct14. Sources mentioned that
sales & trade volume remains thin
owing to liquidity crunch
33,500
Prices in INR/MT
32,600
31,700
30,800
29,900
29,000
28,100
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Prices: Ex-Raipur
Basic prices excluding Duty and Taxes
Billet Export Prices
As per market participants, MS Billet
prices are likely to rise by around INR
500/MT with an expectation that
nished steel demand will improve
from this month as festival season has
also ended
Falling Iron ore and Scrap prices in
the global market have bounded
suppliers to reduce their offers
565
Export Prices in USD/MT
Sponge prices had corrected
marginally by INR 500-800/MT in
Oct14. While, MS Ingot/Billet
prices fell by INR 1,000-1,500/MT.
Limited sellers and scarcity of Iron
ore & coal have supported the
Sponge prices
550
CIS countries, which are one of the
major suppliers of Billet to Asian
countries, are offering Billet at
around USD 470/MT; down by USD
20/MT from last month
535
520
505
490
Apr-14
May-14
India Export: FOB India
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Scrap and Iron ore prices are likely to
remain under pressure due to slow
recovery in global steel demand. Prices
may see some further correction Billet
export prices
Silico Manganese 60/14 Prices
Prices remain relatively unchanged
60,500
Demand was low, hampered by
many hoildays
Prices in INR/MT
59,200
57,900
Prices will remain capped unless
nished steel demand rises
56,600
55,300
54,000
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Prices: Ex Durgapur
Basic prices excluding Duty and Taxes
There was little deals to China
China Ferro Chrome Prices (HC 60%)
85.5
Chinese Stainless Steel mills
rollover purchase prices
Prices in Cents/ Lb CNF China
85.0
As production comes down in winter
months in China, there could be
renewed demand for Indian Ferro
Chrome
84.5
84.0
83.5
83.0
82.5
82.0
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Re - bar 12 mm Prices
Primary Rebar manufacturers also
reduced prices by INR
1,000-2,000/MT owing to less
buying from projects
38,000
37,000
Prices in INR/MT
Secondary Rebar prices have
reduced by INR 1,000-1,500/MT in
Oct14 across India owing to fall in
Ingot prices in the same range
Lower demand and rising cheaper
imported Rebar especially from
China has hurt the domestic steel
manufacturers
36,000
35,000
34,000
33,000
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-4
Prices: Ex Mumbai
Basic prices excluding Duty and Taxes
Market sources expect minor price
correction from the Primary Rebar
producers in November depending on
the market situation
Secondary Rebar prices may increase
slightly in the current month owing to
shortage of Iron-ore in the market
HRC -2.5 mm Prices
Prices in INR/MT
43400
HRC trading prices fell by INR
500-700/MT in last week of Oct'14
on account of poor sales
43100
42800
Imported offers for Chinese HRC
fell below USD 500/MT CFR India
42500
42200
Prices are likely to correct further as
there is no improvement in demand
41900
Apr-14
May-14
Jun-14
Delhi& NCR
Prices include Excise Duty and VAT extra
Jul-14
Aug-14
Sep-14
Oct-14
Traders expect minor improvement in
sales for Nov'14 as compared to
Oct'14
Exchange rate (INR vs USD)
62.00
INR per USD
61.00
60.00
59.00
58.00
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Source: RBI
Indian Statistics (Production/Export/Import)
Production
Iron ore
Coal (CIL)
Manganese Ore
Chrome Ore
Crude Steel
Apr'14
37.51
6.80
May'14
13.90
36.27
0.23
0.26
6.90
Jun'14
11.70
34.54
0.22
0.24
6.70
Jul'14
12.60
33.01
0.19
0.11
6.90
Aug'14
10.80
34.54
0.56
0.07
7.02
Sep'14
34.88
6.8
Oct'14
40.20
-
Export
Iron Ore
Iron Ore Pellet
Mill Scale
Pig Iron
Flat Steel
0.95
0.11
0.06
0.04
0.48
0.67
0.05
0.08
0.09
0.46
0.33
Nil
0.04
0.01
0.43
0.22
Nil
0.05
0.38
0.39
0.05
0.02
0.08
0.41
0.25
Nil
0.07
0.06
0.45
0.11
0.10
Nil
0.38
Import
Coal
Scrap
Iron ore
Manganese Ore
Chrome ore
Flat Steel
17.90
0.39
0.04
0.22
0.03
0.42
19.20
0.45
Nil
0.29
0.01
0.45
18.80
0.45
0.04
0.20
0.01
0.50
18.90
0.46
0.95
0.35
0.02
0.38
18.01
0.47
1.01
0.33
0.02
0.56
18.80
0.48
0.80
0.33
0.04
0.55
18.30
0.37
2.20
0.20
0.66
Qty in MnT (Million Tons)
Source: SteelMint Research
Steel int
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