Indian steel market improved for a change during last week with the long product prices bottoming out on one hand and flat products maintaining a rock steady performance.
The Indian Long Product Price Index ILPPI improved by 61 points whereas Indian Flat Products Index IFPPI improved by 33 points. The overall price index INDSPI improved by 48 points.
| Class | 31-Jul | 07-Aug | Change |
| ILPPI | 6035 | 6096 | 61 |
| IFPPI | 6992 | 7025 | 33 |
| INDSPI | 6491 | 6539 | 48 |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 31-Jul | 07-Aug | Change |
| PI - TMT | 5644 | 5732 | 88 |
| PI - WRC | 6682 | 6745 | 63 |
| PI - Angle | 5660 | 5653 | -7 |
| PI - Channel | 5700 | 5700 | 0 |
| PI - Joist | 5287 | 5315 | 28 |
PI - Product Index
Flat products
| Category | 31-Jul | 07-Aug | Change |
| PI - Narrow Plates | 6593 | 6630 | 38 |
| PI - Wide Plates | 6817 | 6842 | 25 |
| PI - Hot Rolled | 6829 | 6875 | 46 |
| PI - Cold Rolled | 7626 | 7638 | 13 |
| PI - Galvanized | 7377 | 7383 | 6 |
PI - Product Index
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1. Input Material - Price recovery started
There was customary stability in the prices of input material post long product prices bottomed out as furnace operators and re rollers hit the floor faced with the peril of shut down .
Sponge iron
| Location | Change |
| Raipur | 9.8% |
| Kolkata | 3.2% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
Pig Iron
| Location | Change |
| Raipur | 7.5% |
| Kolkata | 0.0% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
Melting scrap
80:20
HMS
| Location | Change |
| Chennai | 0.0% |
| Kandla | 0.5% |
| Mumbai | 2.0% |
| Mandi | 0.0% |
| Kolkata | 0.0% |
| Kanpur | 3.0% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
Alang
| Product | Size | Change |
| Ships | Mixed | 8.1% |
| Plate cuttings | 1" | 12.0% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
Pencil ingot
| Location | Change |
| Mumbai | 9.4% |
| Mandi | 5.6% |
| Raipur | 5.0% |
| Kanpur | 2.2% |
| Kolkata | -1.4% |
| Ghaziabad | 3.9% |
| Muzzafarnagar | 4.4% |
| Ahmedabad | 3.0% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
2. Long products - End of dry spell
Indian long product prices seemed to peeking out of the abyss after an unbroken slide of 13 weeks. Week on week the prices of long products prices had rapidly plummeted regardless of divergent movements in the international market. The rot was so deep rooted that all the efforts by the government and steel majors to arrest the slope proved futile.
The miserable plight of re rollers, sponge iron and pig iron manufactures was aggravated with shut down staring in their face as they were unable to mitigate even fixed costs. With ever increasing desperation, bottoming out seemed imminent as the mills were left with the Hobson’s choice to sell at cost or perish as piquantly demand continues to elude the market.
Prices of ingot and rebar have made an august opening this month with growth of up to INR 2000 per tonne within week in the commercial hubs of Mumbai and Delhi. However due to regional imbalances negative trend also prevailed at some location during the last week.
TMT
Fe 415
12mm
| Location | Change |
| Chennai | -0.7% |
| Mumbai | 4.2% |
| Mandi | -0.7% |
| Kolkata | 0.0% |
| Delhi | 7.0% |
| Kanpur | 2.6% |
| Ahmedabad | 4.8% |
| Indore | 5.9% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | 0.0% |
| Raipur | 1.8% |
| Kolkata | -1.1% |
| Delhi | 1.6% |
| Kanpur | 2.6% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
ANGL
GR A
65x6
| Location | Change |
| Chennai | -1.7% |
| Mumbai | 3.2% |
| Mandi | 1.0% |
| Raipur | 0.8% |
| Kolkata | -1.9% |
| Delhi | 1.1% |
| Kanpur | 0.7% |
| Ahmedabad | 4.2% |
| Indore | 4.7% |
| Bangalore | -3.4% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
CHNL
GR A
75/100
| Location | Change |
| Chennai | -1.7% |
| Mumbai | 3.2% |
| Mandi | 1.0% |
| Raipur | 0.8% |
| Kolkata | -1.9% |
| Delhi | 1.1% |
| Kanpur | -0.4% |
| Ahmedabad | 5.1% |
| Indore | 4.7% |
| Bangalore | -2.4% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
JSTI
GR A
250x125
| Location | Change |
| Chennai | 0.0% |
| Mumbai | 3.1% |
| Mandi | -0.7% |
| Raipur | 1.5% |
| Kolkata | 3.7% |
| Delhi | 1.3% |
| Kanpur | -0.7% |
| Ahmedabad | 2.2% |
| Indore | 4.4% |
| Bangalore | -4.4% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
It is advised not to throw caution to the wind as demand fundamentals are feeble with no perceptible pick up in construction sector as the existing projects have reached culmination.
However every cloud has silver lining .The culmination of monsoon and the massive budgetary allocation for housing and infrastructure segment, including in rural sector, is anticipated to throw demand in the 3rd quarter.
3. Flat products - Availability constraints continue
Indian steel majors, encouraged by an undersupplied market craving for material, increased HRC and CRC prices by about INR 1000 per tonne in August beginning.
Although there is absence of solid demand, the sentiments remained vibrant for the third consecutive month owing to supply constraint. Earlier it was the shutdown of SAIL and Ispat and now it is the turn of Essar scheduled to go for maintenance from 8th August likely to curtail availability by 100,000 tonne.
Auto Industry has demonstrated modicum of recovery MoM rekindling demand in an otherwise morose market.
On the other hand imports have significantly reduced due lack of parity at USD 537 per tonne whereas offers seem feasible only at USD 560 per tonne to 580 per tonne as the domestic prices continue to reel much below the international price levels having shown resilience blown by the Chinese hurricane.
HRC market will continue to be buoyant in the coming months unless there is radical change in supply dynamics internationally.
Many major integrated mills have also raised their galvanized steel prices but are not making any price hike announcements apprehending backlash due to off season.
However the optimism seems slightly diluted with order bookings coming down to a month from the previous levels of 2 months.
HRC
Tube
2.5x1250
| Location | Change |
| Mumbai | 0.0% |
| Ludhiana | 1.8% |
| Kolkata | 1.5% |
| Delhi | 1.5% |
| Ahmedabad | 0.6% |
| Indore | 2.0% |
| Bangalore | -2.9% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
Patra
| Location | Change |
| Ludhiana | 0.0% |
| Mandi | 3.6% |
| Delhi | 0.0% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
PLTS
GRA
8x1.5
| Location | Change |
| Chennai | 3.6% |
| Mumbai | 0.0% |
| Kolkata | 0.0% |
| Delhi | 1.5% |
| Kanpur | 0.9% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
PLTS
GRB
12-20x2.5
| Location | Change |
| Chennai | 0.0% |
| Mumbai | 0.0% |
| Raipur | 3.0% |
| Kolkata | 0.0% |
| Delhi | 2.1% |
| Kanpur | 1.5% |
| Ahmedabad | 0.6% |
| Indore | 2.0% |
| Bangalore | -1.7% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
CR
DSK
0.63x1000
| Location | Change |
| Chennai | 0.0% |
| Mumbai | 1.4% |
| Pune | 1.3% |
| Kolkata | -2.4% |
| Delhi | 2.7% |
| Kanpur | 1.3% |
| Ahmedabad | 0.7% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
GC
100Gms
0.4
| Location | Change |
| Chennai | 0.0% |
| Mumbai | 0.0% |
| Kolkata | 0.0% |
| Delhi | 0.0% |
| Kanpur | 1.8% |
| Bangalore | -1.2% |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in INR per tonne
Indian Export Levels - Mild improvement continues
The export levels improved with mediocre demand revival in Europe.
| Item | Size | Delivery | Change |
| PLTS | 12-40x2.5 | FOB Vizag | 10 |
| HDG | 0.4 | FOB Mumbai | 30 |
| PPGI | 0.4 | FOB Mumbai | 40 |
Change is on August 7th 2009 as compared to July 31st 2009
Change is in USD per tonne
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