The Indian long product prices, after rallying till April 5th 2010, have shown signs of stability in last 10 days. The Indian Long Product Prices Index ILPPI went down by 96 points or 1.2% on April 16th 2010 as compared to April 5th.
But market players are seeing the weakness as temporary and expect the prices to rebound in coming days due to strong demand in peak construction period as well as curtailed availability of material due to power shortages.
As per reports, the pencil ingot makers as well as rolling mills are already facing the heat and in many parts of the country power shortages have reduced working time by almost 1/3rd. Situation is expected to get worse in coming months as one of the worst summers are being seen.
Due to likely restricted production, market players are anticipating that rebar prices could go up by up to INR 4000 per tonne to INR 5000 per tonne. If this becomes true, than TMT prices of main producers will inch closer to peak levels of INR 50,000 per tonne as seen in June 2008.
But lifting of the restrictions on iron or movement are likely to improve the production of sponge iron in coming weeks thus acting as a balancing factor to power supply woes.
On the other hand, flat product prices have been weakening last week as market has not been able to absorb the hikes by Indian steel majors due to restricted demand as well as cheaper availability of imported material The seeds of this mid term adjustment were sown in the process of massive market improvement over the last couple of months.
It is learnt the February and March was watershed months as manufacturers registered healthy sales. Although prices where improved in staggered way but the giant leap came on 1st April when most suppliers hiked the prices by INR 2500 per tonne to INR 3000 per tonne.
Ironically the very momentum proved to be its undoing as the traders and stockists who up till now had replenished their stocks chose to withhold sales in anticipation of better prices and profiteering. However once the suppliers move became clear they released volumes in the market lower than the manufacturers prices yet making profit . This counter pressure gravitated the prices although there has been no ebbing of demand in true sense. (Ref : 9th April 2010:Deadwoods keep plate prices sulking in North India)
The Indian Long Product Price Index ILPPI merely increased by 1 point last week whereas Indian Flat Products Index IFPPI dropped by 79 points. The overall price index INDSPI decreased by 37 points.
| Class | 09-Apr | 16-Apr | Change | % |
| ILPPI | 7754 | 7755 | 1 | 0.0% |
| IFPPI | 8675 | 8596 | -79 | -0.9% |
| INDSPI | 8193 | 8156 | -37 | -0.5% |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 09-Apr | 16-Apr | Change | % |
| PI - TMT | 7607 | 7593 | -14 | -0.2% |
| PI - WRC | 8186 | 8212 | 26 | 0.3% |
| PI - Angle | 7343 | 7308 | -35 | -0.5% |
| PI - Channel | 7435 | 7430 | -5 | -0.1% |
| PI - Joist | 6858 | 6843 | -15 | -0.2% |
PI - Product Index
Flat products
| Category | 09-Apr | 16-Apr | Change | % |
| PI - Narrow Plates | 8277 | 8182 | -95 | -1.1% |
| PI - Wide Plates | 8519 | 8493 | -26 | -0.3% |
| PI - Hot Rolled | 8486 | 8375 | -111 | -1.3% |
| PI - Cold Rolled | 9277 | 9245 | -32 | -0.3% |
| PI - Galvanized | 9272 | 9246 | -26 | -0.3% |
PI - Product Index
These indices have base of 10,000 as on July 1st 2008
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Indian government has convened a meeting of steel producers this week to take stock of the rising price situation in the country.
Mr Atul Chaturvedi steel secretary told PTI that "We have convened a meeting on April 22 of all the steel producers. We want to understand what's happening on the prices front.”
Asked if the government would ask steel makers not to hike prices further, he said that "Steel is a deregulated sector. We can't legally intervene and ask steel firms to freeze prices."
1. Input material
Melting scrap
80:20
HMS
| Location | Change |
| Chennai | 0% |
| Kandla | -3% |
| Kanpur | -1% |
| Kolkata | 2% |
| Mandi | -2% |
| Mumbai | 0% |
Change is on April 16th 2010 as compared to April 9th 2010
Alang
| Product | Size | Change |
| Plate cuttings | 1" | 0% |
| Ships scrap | Mixed | 0% |
Change is on April 16th 2010 as compared to April 9th 2010
Pencil ingot
| Location | Change |
| Ahmedabad | -1% |
| Bhiwari | -1% |
| Durgapur | -2% |
| Ghaziabad | -4% |
| Hyderabad | -7% |
| Jaipur | -2% |
| Jamshedpur | -1% |
| Kanpur | -2% |
| Kolkata | 3% |
| Mandi | -3% |
| Mumbai | 0% |
| Muzzafarnagar | -3% |
| Nagpur | -3% |
| Raigarh | -2% |
| Raipur | -2% |
| Rourkela | -1% |
| Rudrapur | -2% |
Change is on April 16th 2010 as compared to April 9th 2010
Pig Iron
| Location | Change |
| Agra | 1% |
| Jallandhar | 1% |
| Kolkata | 1% |
| Raipur | 1% |
Change is on April 16th 2010 as compared to April 9th 2010
Sponge iron
| Location | Change |
| Bellary | -4% |
| Kolkata | -1% |
| Raigarh | -4% |
| Raipur | -3% |
| Rourkela | -2% |
Change is on April 16th 2010 as compared to April 9th 2010
2. Long products
Rebar (TMT QST)
Fe 415
12mm
| Location | Change |
| Ahmedabad | -2% |
| Chennai | -1% |
| Delhi | 0% |
| Indore | -1% |
| Kanpur | 1% |
| Kolkata | 0% |
| Mandi | 2% |
| Mumbai | 0% |
| Raipur | -1% |
Change is on April 16th 2010 as compared to April 9th 2010
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 1% |
| Kolkata | 1% |
| Raipur | -1% |
Change is on April 16th 2010 as compared to April 9th 2010
ANGL
Grade A
65X65X6
| Location | Change |
| Ahmedabad | -1% |
| Bangalore | -2% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | -1% |
| Kanpur | 1% |
| Kolkata | 0% |
| Mandi | 1% |
| Mumbai | 0% |
| Raipur | -2% |
Change is on April 16th 2010 as compared to April 9th 2010
CNHL
Grade A
75/40
| Location | Change |
| Ahmedabad | -1% |
| Bangalore | -2% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | -1% |
| Kanpur | 1% |
| Kolkata | 3% |
| Mandi | 0% |
| Mumbai | 0% |
| Raipur | -2% |
Change is on April 16th 2010 as compared to April 9th 2010
JSTI
Grade A
250X125
| Location | Change |
| Ahmedabad | -1% |
| Bangalore | -2% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | -2% |
| Kanpur | -1% |
| Kolkata | 3% |
| Mandi | -1% |
| Mumbai | 0% |
| Raipur | -2% |
Change is on April 16th 2010 as compared to April 9th 2010
3. Flat products
HRC
Tube
2.5x1250
| Location | Change |
| Ahmedabad | -1% |
| Bangalore | -3% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | -1% |
| Kolkata | -2% |
| Ludhiana | 1% |
| Mumbai | -2% |
Change is on April 16th 2010 as compared to April 9th 2010
Patra
| Location | Change |
| Delhi | 0% |
| Ludhiana | -4% |
| Mandi | 1% |
Change is on April 16th 2010 as compared to April 9th 2010
Plates
Grade A
8X1250/1500
| Location | Change |
| Chennai | 0% |
| Delhi | 2% |
| Kanpur | 0% |
| Kolkata | -1% |
| Mumbai | -2% |
Change is on April 16th 2010 as compared to April 9th 2010
Plates
GRADE B
12-20X2500
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 2% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mumbai | -1% |
| Raipur | 0% |
Change is on April 16th 2010 as compared to April 9th 2010
CR
DSK
0.63x1000
| Location | Change |
| Ahmedabad | 1% |
| Chennai | 0% |
| Delhi | 1% |
| Kanpur | -1% |
| Kolkata | -2% |
| Mumbai | -2% |
| Pune | -2% |
Change is on April 16th 2010 as compared to April 9th 2010
GC
100Gms
0.4
| Location | Change |
| Bangalore | 1% |
| Chennai | 0% |
| Delhi | 1% |
| Kanpur | 0% |
| Kolkata | -1% |
| Mumbai | 1% |
Change is on April 16th 2010 as compared to April 9th 2010
4. Indian Export Levels
| Item | Grade | Size | Delivery | Change |
| HDG | 100Gms | 0.4 | FOB Mumbai | 0 |
| HDG | 100Gms | 0.58 | FOB Mumbai | 30 |
| HDG | 275Gms | 0.75 | FOB Mumbai | 0 |
| PLTS | Structural | 12-40x2.5 | FOB Vizag | 0 |
| PPGI | Standard RAL | 0.4 | FOB Mumbai | 35 |
Change is on April 16th 2010 as compared to April 9th 2010
Change is in USD per tonne
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