semi finished and finished long

7/30/2019 Semi Finished and Finished Long

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India: Long steel market continue to look for buyers

Indian Sponge Iron at 2-

Year low; current pricesat $320-350/MT (Ex

Works)

Indian sponge iron indus-

try seems to be getting

into a consolidation stage.

Restricted supply of Iron

ore in Indian market, ris-

ing power and risingim-

ports 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 areusing low grade iron ore, which makes their quality inferior. Above that, rising power tariffs are making induction fur-

naces 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 ManufacturersAssociation 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 MnTAvailable for Sale - 19.8 MnT

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

SNAPSHOT

Increased power tariffs in-

crease the prices but low de-

mand again pulled down prices

to same level

MS Ingot/Billet prices are

below March Average price

Prices expected to remain

at current levels

Semi-Finish & Finished Steel Review 06 May 2013

Table 1. Sponge Iron ore

City 1st May 15th April Change (%) April'13 March'13 Feb'13

Raipur 19,000 20,100 -5% 19,700 20,100 20,200

Rourkela 17,700 17,900 -1% 17,900 18,200 18,300

Durgapur 19,600 20,500 -4% 20,200 19,800 20,200

Hyderabad - 19,900 - 19,800 19,700 19,300

Bellary 17,200 18,700 -8% - - -

Note: Basic Price. ED and taxes extra.

Sponge Iron ore as on Monthly Average Price

Table 2. MS Ingot and Billet

City 1st May Apirl (Avg) March (Avg) 1st May Apirl (Avg) March (Avg)

Mandi 31,900 32,500 32,300 32,600 33,000 32,800

Raipur 27,700 28,500 28,700 28,400 29,100 29,100

Durgapur 28,000 28,700 28,500 28,500 29,200 29,100

Rourkela 27,600 27,700 28,100 28,000 28,300 28,600

Mumbai 29,900 30,900 31,300 30,100 31,100 31,500

Chennai (Inc. ED) 35,000 35,000 34,000 35,500 35,600 34,300

Gzb 31,300 31,900 32,000 - - -


Ingot price as on Billet Price as on


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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.

15th

April to 2nd

May:

Mandi Gobindgarh prices corrected by Rs 700-1,000/MTRourkela 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

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

26

th

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 Ra-

jasthan @ 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

Table 3. Re-Bar Price

Price Inclusive of

all taxes

City 1st May 15th April Change (%) April'13 March'13 Feb'13 1st May

Mumbai 34,000 35,000 -2.86 34,600 35,250 35,800 40,113

Raipur 32,200 33,600 -4.17 33,200 32,650 33,000 37,989Durgapur 37,800 39,000 -3.08 38,600 37,900 38,600 37,800

Chennai 40,500 41,000 -1.22 40,800 39,900 39,300 42,525

Hyderabad 34,000 35,200 -3.41 35,000 35,200 35,300 40,113

Muzafarnagar 34,800 36,200 -3.87 35,600 35,300 35,200 41,056

Mandi 36,400 37,100 -1.89 36,800 36,400 35,900 42,944


12MM Re-bar as on Average Price


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Iron Ore Market Insight 30 Apr 2012Iron Ore Market Insight 01 May 2012Finished Steel 01 May 2012

About SteelMint

An ISO 9001:2008 certified Steel Research and Analysis Company providing Steel Market information to people in business of steel

and helping them take informed decisions.

The Company provides complete coverage on more than 25 Steel Products (Steel raw materials, semi-finished and finished prod-

ucts).

Publishing daily and weekly, fortnightly reports containing current prices, market sentiments, market views/analysis, outlook and

industry news.

Clients benefiting from SteelMints research and reports include some of the largest steel manufacturers of the world and almost

all major steel companies in India such as ArcelorMittal, Tata Group, Aditya Birla group, Vedanta Group, NMDC, SAIL, Sesa Goa,

Jindal Group, JSW, Essar Group, Citigroup, EnY, CRU Group and many more.

Raipur:

301, Jeevan Parisar,

Rajeev Nagar, Behind Crystal Arcade,

Raipur (C.G) - 492007,

India

Tel: +91 771 2284888

Kolkata:

5th Floor, Vishvakarma Building,

86,Topsia Road, South-West Block,

Kolkata (W.B) - 700 046,

India

Tel: +91 33 22852063

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 4. Structure Prices

City

1-Apr 15-Apr 30-Apr 1-Apr 15-Apr 30-Apr 1-Apr 15-Apr 30-Apr

Raipur 32200 33000 32000 32500 33100 32100 32900 33100 32500

Mumbai 35400 35500 34700 36200 36300 35500 36600 36700 35900

Durgapur 34000 34000 33500 34000 34000 33500 34500 34500 34000

Hyderabad 35000 34800 34000 35500 34800 34500 36000 34800 34500

NOTE: Basic prices taxes and loading extra.

40,50 Angle 75,100 Channel 125,150 I-Beam

www.steelmint.com

Table 5. Freight Table from Major Station

Loading / Unloading Indore Jabalpur Chennai Bangalore Delhi & NCR Region Mandi

Raipur to - 1800-2000 700 3500-3700 3200 2200-2700 -

Goa to - - - 1500 1400 - -

Durgapur to - - - 2700-3000 - 1900 -

Raigarh to - - - - - 2000-2500 -Jaipur to - - - - - - 1900

Jalna to - 800-1200 - - 2200-2500 - -

* Indicative frieght in INR


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 manufac-

tures to hike offers by Rs500-900/MT. But, later as demand vanished, manufacturers cut production level by30-50% and offers by Rs 700/MT.
http://www.steelmint.com/http://www.steelmint.com/http://www.steelmint.com/http://www.steelmint.com/http://www.steelmint.com/

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