Indian domestic steel prices exhibited mixed sentiments for long and flat products last week. The Indian Long Product Price Index ILPPI decreased by 39 points whereas Indian Flat Products Index IFPPI increased by 107 points. The overall price index INDSPI increased by 30 points.
| Class | 31-Dec | 08-Jan | Change | % |
| ILPPI | 7220 | 7180 | -39 | -0.5% |
| IFPPI | 7455 | 7561 | 107 | 1.4% |
| INDSPI | 7332 | 7362 | 30 | 0.4% |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 31-Dec | 08-Jan | Change | % |
| PI - TMT | 7118 | 7029 | -89 | -1.2% |
| PI - WRC | 7567 | 7601 | 33 | 0.4% |
| PI - Angle | 6951 | 6851 | -101 | -1.4% |
| PI - Channel | 6952 | 6880 | -73 | -1.0% |
| PI - Joist | 6362 | 6282 | -80 | -1.3% |
PI - Product Index
Flat products
| Category | 31-Dec | 08-Jan | Change | % |
| PI - Narrow Plates | 7062 | 7260 | 198 | 2.8% |
| PI - Wide Plates | 7176 | 7336 | 160 | 2.2% |
| PI - Hot Rolled | 7311 | 7379 | 68 | 0.9% |
| PI - Cold Rolled | 8092 | 8209 | 117 | 1.5% |
| PI - Galvanized | 7838 | 7978 | 140 | 1.8% |
PI - Product Index
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However, ILPPI, after reaching peak of 7460 on January 4th 2009, went down by 225 points or 3.0% during Tuesday to Friday period.
Reality seems sinking in the market for long product prices. Although 2010 started with a bang primarily propped by an ambitious hike in prices by steel majors by INR 2000 per tonne it took less than a week time for the start of retraction. All through the blitzkrieg demand had remained unchanged but the sentiments went in surfeit owing to iron ore shortage and obdurate scrap prices catapulting levels by a phenomenal 20%.
The demand was speculative as stockiest and traders scampered for material to hedge from the inflation. It is widely believed that the demand was created artificially and had all the moorings of slide. Traders and stockiest are ruling the roost in this ambiguity as prices might rebound yet again when they return to market after the suppliers bulk under pressure created by them.
The PI (Product Index) movement in last 4 days clearly reflects that rebar TMT prices are leading the crash with 4% loss as compared to wire rod (-2.2%) and sections (-3%). It could be the results of higher gains in rebar prices during the surge period. During the surge period of December 1st 2009 to January 4th 2010, PI movement reflected following gains
TMT - 32.5%
WRC - 22.3%
Sections - 27.1%
ILPPI - Long Product Price Index
Gain during December 1st 2009 to January 4th 2010
| Class | 01-Dec | 04-Jan | Change | % |
| ILPPI | 5829 | 7406 | 1577 | 27.1% |
Loss during January 4th 2010 to January 8th 2010
| Class | 4-Jan | 8-Jan | Change | % |
| ILPPI | 7406 | 7180 | -226 | -3.05% |
PI - Product Index
Gain during December 1st 2009 to January 4th 2010
| Category | 01-Dec | 04-Jan | Change | % |
| PI - TMT | 5523 | 7319 | 1796 | 32.5% |
| PI - WRC | 6356 | 7772 | 1416 | 22.3% |
| PI - Sections | 5410 | 6878 | 1468 | 27.1% |
Loss during January 4th 2010 to January 8th 2010
| Category | 4-Jan | 8-Jan | Change | % |
| PI - TMT | 7319 | 7029 | -290 | -3.96% |
| PI - WRC | 7772 | 7601 | -171 | -2.20% |
| PI - Sections | 6878 | 6671 | -207 | -3.02% |
On the other hand, one of the major drivers of rebar prices in India, pencil ingot has posted much heavier losses during this period.
Pencil Ingot
| Product | Change |
| Durgapur | -8.3% |
| Kolkata | -6.9% |
| Raipur | -6.7% |
| Mumbai | -6.3% |
| Nagpur | -6.3% |
| Ghaziabad | -5.5% |
| Mandi | -4.7% |
| Rourkela | -4.4% |
| Hyderabad | -3.6% |
| Muzzafarnagar | -3.3% |
| Ahmedabad | -3.0% |
| Kanpur | -2.6% |
| Rudrapur | -1.6% |
| Raigarh | -1.1% |
| Bhiwari | -0.4% |
Change is on January 8th 2010 as compared to January 4th 2010
As per market sources the correction is likely to be limited and pre December levels are not likely to come back. But it is quite likely that we shall be seeing further crash of long product prices in coming days, unless market players spring up a surprise by strengthening pencil ingot prices.
On the other hand, with raw material prices remaining firm it is possible that prices might rebound once again albeit at reduced pace when the steel majors dole out discounts to liquidate stocks. This sentiment is echoed by Indian steel majors also, as they feel that demand has really picked for long products and prices will become stable this week.
1. Input material
Melting scrap
80:20
HMS
| Location | Change |
| Chennai | -8% |
| Kandla | -2% |
| Kanpur | -3% |
| Kolkata | 0% |
| Mandi | -2% |
| Mumbai | -1% |
Change is on January 8th 2010 as compared to January 1st 2010
Alang
| Product | Size | Change |
| Plate cuttings | 1" | 0% |
| Ships | Mixed | 3% |
Change is on January 8th 2010 as compared to January 1st 2010
Pencil ingot
| Location | Change |
| Ahmedabad | 1% |
| Bhiwari | 0% |
| Durgapur | -4% |
| Ghaziabad | -2% |
| Hyderabad | 2% |
| Jaipur | 0% |
| Jamshedpur | 0% |
| Kanpur | 1% |
| Kolkata | -2% |
| Mandi | -1% |
| Mumbai | -5% |
| Muzzafarnagar | 0% |
| Nagpur | -4% |
| Raigarh | -1% |
| Raipur | -3% |
| Rourkela | -2% |
| Rudrapur | 4% |
Change is on January 8th 2010 as compared to January 1st 2010
Pig Iron
| Location | Change |
| Agra | 10% |
| Jallandhar | 8% |
| Kolkata | 10% |
| Raipur | 10% |
Change is on January 8th 2010 as compared to January 1st 2010
Sponge iron
| Location | Change |
| Bellary | -3% |
| Kolkata | 8% |
| Raigarh | 4% |
| Raipur | 6% |
| Rourkela | 4% |
Change is on January 8th 2010 as compared to January 1st 2010
2. Long products
TMT
Fe 415
12mm
| Location | Change |
| Ahmedabad | 3% |
| Chennai | 0% |
| Delhi | -3% |
| Indore | -3% |
| Kanpur | 0% |
| Kolkata | -3% |
| Mandi | -1% |
| Mumbai | -4% |
| Raipur | -3% |
Change is on January 8th 2010 as compared to January 1st 2010
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | 6% |
| Delhi | -1% |
| Kanpur | 0% |
| Kolkata | 0% |
| Raipur | -3% |
Change is on January 8th 2010 as compared to January 1st 2010
ANGL
Grade A
65X65X6
| Location | Change |
| Ahmedabad | 2% |
| Bangalore | 0% |
| Chennai | -2% |
| Delhi | 0% |
| Indore | -1% |
| Kanpur | -1% |
| Kolkata | -2% |
| Mandi | -2% |
| Mumbai | -4% |
| Raipur | -5% |
Change is on January 8th 2010 as compared to January 1st 2010
CNHL
Grade A
75/40
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | 0% |
| Chennai | -1% |
| Delhi | 0% |
| Indore | -1% |
| Kanpur | 1% |
| Kolkata | 0% |
| Mandi | -2% |
| Mumbai | -4% |
| Raipur | -5% |
Change is on January 8th 2010 as compared to January 1st 2010
JSTI
Grade A
250X125
| Location | Change |
| Ahmedabad | 3% |
| Bangalore | 0% |
| Chennai | -4% |
| Delhi | -3% |
| Indore | -1% |
| Kanpur | 4% |
| Kolkata | 0% |
| Mandi | -3% |
| Mumbai | -4% |
| Raipur | -4% |
Change is on January 8th 2010 as compared to January 1st 2010
3. Flat products
HRC
Tube
2.5x1250
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | 0% |
| Chennai | 3% |
| Delhi | -3% |
| Indore | 0% |
| Kolkata | 8% |
| Ludhiana | -1% |
| Mumbai | 1% |
Change is on January 8th 2010 as compared to January 1st 2010
Patra
| Location | Change |
| Delhi | -1% |
| Ludhiana | 5% |
| Mandi | -1% |
Change is on January 8th 2010 as compared to January 1st 2010
Plates
Grade A
8X1250/1500
| Location | Change |
| Chennai | 6% |
| Delhi | 1% |
| Kanpur | -1% |
| Kolkata | 7% |
| Mumbai | 1% |
Change is on January 8th 2010 as compared to January 1st 2010
Plates
GRADE B
12-20X2500
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | 0% |
| Chennai | 3% |
| Delhi | 1% |
| Indore | 0% |
| Kanpur | -1% |
| Kolkata | 7% |
| Mumbai | 1% |
| Raipur | 1% |
Change is on January 8th 2010 as compared to January 1st 2010
CR
DSK
0.63x1000
| Location | Change |
| Ahmedabad | 0% |
| Chennai | 6% |
| Delhi | 4% |
| Kanpur | -2% |
| Kolkata | 3% |
| Mumbai | 0% |
| Pune | 0% |
Change is on January 8th 2010 as compared to January 1st 2010
GC
100Gms
0.4
| Location | Change |
| Bangalore | 0% |
| Chennai | 6% |
| Delhi | 7% |
| Kanpur | -2% |
| Kolkata | 4% |
| Mumbai | 0% |
Change is on January 8th 2010 as compared to January 1st 2010
4. Indian Export Levels
Export levels of HDG and PPGI from Indian mills surged further last week
Change is on January 8th 2010 as compared to January 1st 2010
Change is in USD per tonne
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