Market continued gradual improvement both for long and flat products during last week. The Indian Long Product Price Index ILPPI improved by 11 points whereas Indian Flat Products Index IFPPI improved by 63 points. The overall price index INDSPI improved by 36 points.
| Class | 07-Aug | 14-Aug | Change |
| ILPPI | 6096 | 6107 | 11 |
| IFPPI | 7025 | 7088 | 63 |
| INDSPI | 6539 | 6574 | 36 |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 07-Aug | 14-Aug | Change |
| PI - TMT | 5732 | 5738 | 6 |
| PI - WRC | 6745 | 6756 | 11 |
| PI - Angle | 5653 | 5672 | 19 |
| PI - Channel | 5700 | 5718 | 18 |
| PI - Joist | 5315 | 5338 | 23 |
PI - Product Index
Flat products
| Category | 07-Aug | 14-Aug | Change |
| PI - Narrow Plates | 6630 | 6740 | 110 |
| PI - Wide Plates | 6842 | 6900 | 58 |
| PI - Hot Rolled | 6875 | 6954 | 80 |
| PI - Cold Rolled | 7638 | 7638 | 0 |
| PI - Galvanized | 7383 | 7423 | 39 |
PI - Product Index
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The steel sector has exhibited resilience during the April to July period this year, as Indian steel output grew by 3.8% YoY to 18.77 million tonne. Indian steel consumption during the four month period was up by 5.8% YoY at 17.31 million tonne. As per the latest data of steel ministry, India’s steel production in July alone stood at 4.8 million tonne up by 6% over the corresponding month last year.
It is noteworthy that Indian steelmakers had earlier cut production by up to 40% in the October-December 2008 quarter, due to poor demand in the domestic market. But the economic stimulus packages announced by the government had positive impact on demand.
However with a below average monsoon the agricultural sector will be severely affected with a major dent in purchasing power leading to slump in demand.
However recent indications by the government of about renewed focus in rural sector in by proponing massive investments in employment generation programs viz., NREGA will lead to demand generation.
1. Input Material - Mixed movement
The input material prices continued to reel under the impact of a depressed long product market. Recently with some simmering of activity commencing in long product market prices of raw materials like sponge iron and pig iron looked up although downstream scrap remained untouched. At Alang ship breaking and plate cutting scrap saw major dip owing to the same reason and abundant supply of about 1 million tonne.
The scrap market definitely seems set for some activity in the ensuing week after the European holidays and long product prices expected to improve after bottoming out.
Sponge iron
| Location | Change |
| Raipur | 2.4% |
| Kolkata | 0.0% |
Change is on August 14th 2009 as compared to August 7th 2009
Change is in INR per tonne
Pig Iron
| Location | Change |
| Raipur | 3.5% |
| Kolkata | 0.0% |
Change is on August 14th 2009 as compared to August 7th 2009
Change is in INR per tonne
Melting scrap
80:20
HMS
| Location | Change |
| Chennai | 0.0% |
| Kandla | 0.0% |
| Mumbai | 0.0% |
| Mandi | 0.0% |
| Kolkata | 0.0% |
| Kanpur | 0.0% |
Change is on August 14th 2009 as compared to August 7th 2009
Change is in INR per tonne
Alang
| Product | Size | Change |
| Ships | Mixed | -6.2% |
| Plate cuttings | 1” | -3.2% |
Change is on August 14th 2009 as compared to August 7th 2009
Change is in INR per tonne
Pencil ingot
| Location | Change |
| Mumbai | -1.9% |
| Mandi | -0.4% |
| Raipur | 2.4% |
| Kanpur | 0.0% |
| Kolkata | 2.4% |
| Ghaziabad | -1.4% |
| Muzzafarnagar | 0.8% |
| Ahmedabad | 0.0% |
Change is on August 14th 2009 as compared to August 7th 2009
Change is in INR per tonne
2. Long products - Pause in decline
Market was quite as the bottom seems imminent. Although there was hardly any demand propelling factors during the monsoon, but it seems the prices have hit the floor.
Steel majors like TATA Steel has announced price cut by INR 1500 per tonne, whereas secondary manufacturers have resorted to production cuts to control the damage on other hand. There was minor correction in TMT and WRC prices in North and expected spread its halo in the ensuing week.
TMT
Fe 415
12mm
| Location | Change |
| Chennai | 0.0% |
| Mumbai | 0.0% |
| Mandi | -0.7% |
| Kolkata | 0.0% |
| Delhi | 0.9% |
| Kanpur | 0.4% |
| Ahmedabad | -0.4% |
| Indore | -1.1% |
Change is on August 14th 2009 as compared to August 7th 2009
Change is in INR per tonne
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | 0.0% |
| Raipur | 0.7% |
| Kolkata | 0.0% |
| Delhi | 0.0% |
| Kanpur | 0.0% |
Change is on August 14th 2009 as compared to August 7th 2009
Change is in INR per tonne
| Product | ANGL | CHNL | JSTI |
| Grade | GR A | GR A | GR A |
| Size | 65x6 | 75/100 | 250x125 |
| Mumbai | 0 | 0 | 0 |
| Chennai | 0 | 0 | 0 |
| Kolkata | 208 | 208 | 208 |
| Delhi | 0 | 0 | 312 |
| Mandi | 0 | 0 | 0 |
| Raipur | 0 | 0 | 0 |
| Kanpur | 0 | 300 | 300 |
| Ahmedabad | 0 | 0 | -208 |
| Indore | 0 | -300 | -300 |
| Bangalore | 500 | 300 | 500 |
Change is on August 14th 2009 as compared to August 7th 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 in rural sector is anticipated to throw demand in the 3rd quarter.
3. Flat products - Steady performance
Flat product market remained firm although devoid of the customary buoyancy over the last quarter. The blazing performance has been fuelled by a resilient automobile and consumer durable sector propelled by softer interest rates and better availability. The tempo set by INR 1000 per tonne (3%) price hike announced by the steel majors is expected to maintain its momentum during August.
In the downstream products due to a lower availability of hot rolled coil and hike in prices of zinc most major Indian galvanizers including the integrated steel mills have hiked domestic HDG for August by INR 500-2000 per tonne.
HRC
Tube
2.5x1250
| Location | Change |
| Mumbai | 0.0% |
| Ludhiana | 0.6% |
| Kolkata | 0.0% |
| Delhi | 2.4% |
| Ahmedabad | 2.4% |
| Indore | 0.0% |
| Bangalore | 1.5% |
Change is on August 14th 2009 as compared to August 7th 2009
Change is in INR per tonne
Patra
| Location | Change |
| Ludhiana | 1.7% |
| Mandi | -1.7% |
| 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 | 0.0% |
| Mumbai | 0.0% |
| Kolkata | 1.2% |
| Delhi | 4.5% |
| Kanpur | 2.9% |
Change is on August 14th 2009 as compared to August 7th 2009
Change is in INR per tonne
PLTS
GRB
12-20x2.5
| Location | Change |
| Chennai | 0.0% |
| Mumbai | 0.0% |
| Raipur | 0.0% |
| Kolkata | 0.9% |
| Delhi | 3.0% |
| Kanpur | 3.2% |
| Ahmedabad | -0.6% |
| Indore | 0.0% |
| Bangalore | 0.0% |
Change is on August 14th 2009 as compared to August 7th 2009
Change is in INR per tonne
CR
DSK
0.63x1000
| Location | Change |
| Chennai | 0.0% |
| Mumbai | 0.0% |
| Pune | 0.0% |
| Kolkata | 0.0% |
| Delhi | 0.0% |
| Kanpur | 0.0% |
| Ahmedabad | 0.0% |
Change is on August 14th 2009 as compared to August 7th 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 | 2.2% |
| Bangalore | 0.0% |
Change is on August 14th 2009 as compared to August 7th 2009
Change is in INR per tonne
Indian Export Levels- On a crest
Indian mills feasting backed by strengthening international demand, Indian export prices of hot dipped galvanized and cold rolled have been steadily rising since last month. Most of the mills are booked till October throwing fantastic demo offers for November.
HDG coils with thicknesses between 0.4mm to 0.8mm with around 120gm of zinc coating are currently selling at prices ranging from USD 840 per tonne to USD 870 per tonne CFR Europe.
PPGI offers are prevailing at USD 860 per tonne to USD 870 per tonne FOB Mumbai in 0.4 mm thickness.
The export levels improved with positive sentiments and HRC cost push.
| Item | Grade | Size | Delivery | Change |
| PLTS | Structural | 12-40x2.5 | FOB Vizag | 10 |
| HDG | 100Gms | 0.4 | FOB Mumbai | 10 |
| PPGI | Standard RAL | 0.4 | FOB Mumbai | 10 |
Change is on August 14th 2009 as compared to August 7th 2009
Change is in USD per tonne
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