With weak demand, coupled with falling international steel price levels on Chinese aggression, Indian steel mills will have to exercise great caution in deciding their pricing policies for the month of October.
Indian steel giant Steel Authority of India Limited has already thrown a word of caution on the weekend but others like TATA Steel and JSW have brushed aside the Chinese threat. Dr JJ Irani director of TATA Sons and Mr Sheshagiri Rao joint MD and Group CFO of JSW Steel in recent interviews with CNBC TV18 have opined these sentiments.
But the offers for SS400 grade HRC at USD 510 CNF India, which translates to INT 25,687 per tonne inclusive of all duties and expenses, without MODVAT, is cheaper by more tan INR 6,000 per tonne as compared to Indian domestic prices, luring end users to resort to imports. Thus scenario for flat products in India remains bleak and only silver lining is that Indian steel mills can still capitalize the time required for imports to reach Indian shores.
On the other hand, market scenario for long products seems succulent with expected surge in demand from construction industry particularly in rural sector supplemented by the price levels having hit the deck. However the surprising fall in pencil ingots last week, leaves room for downward correction in the coming weeks.
Indian domestic steel prices exhibited weakening sentiments last week. The Indian Long Product Price Index ILPPI decreased by 48 points, after increasing for 3 consecutive weeks, whereas Indian Flat Products Index IFPPI dipped by mare 5 points, after increasing for 5 consecutive weeks. The overall price index INDSPI decreased by 27 points.
| Class | 18-Sep | 25-Sep | Change | % |
| ILPPI | 6363 | 6315 | -48 | -0.8% |
| IFPPI | 7563 | 7559 | -5 | -0.1% |
| INDSPI | 6935 | 6907 | -27 | -0.4% |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 18-Sep | 25-Sep | Change | % |
| PI - TMT | 6088 | 6016 | -72 | -1.2% |
| PI - WRC | 6883 | 6839 | -44 | -0.6% |
| PI - Angle | 6021 | 5990 | -31 | -0.5% |
| PI - Channel | 6063 | 6067 | 4 | 0.1% |
| PI - Joist | 5614 | 5612 | -1 | 0.0% |
PI - Product Index
Flat products
| Category | 18-Sep | 25-Sep | Change | % |
| PI - Narrow Plates | 7219 | 7218 | -2 | 0.0% |
| PI - Wide Plates | 7302 | 7305 | 3 | 0.0% |
| PI - Hot Rolled | 7400 | 7398 | -2 | 0.0% |
| PI - Cold Rolled | 8165 | 8156 | -10 | -0.1% |
| PI - Galvanized | 8059 | 8036 | -24 | -0.3% |
PI - Product Index
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1. Input material -Shocker slide
Melting scrap
80:20
HMS
| Location | Change |
| Chennai | 0% |
| Kandla | 1% |
| Mumbai | -2% |
| Mandi | 3% |
| Kolkata | 3% |
| Kanpur | 1% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Alang
| Product | Size | Change |
| Ships | Mixed | 0% |
| Plate cuttings | 1” | -2% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Pencil ingot
| Location | Change |
| Mumbai | -2% |
| Mandi | -1% |
| Raipur | 4% |
| Kanpur | -1% |
| Kolkata | -2% |
| Ghaziabad | -2% |
| Muzzafarnagar | -2% |
| Ahmedabad | 1% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Pig Iron
| Location | Change |
| Raipur | 0% |
| Kolkata | 0% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Sponge iron
| Location | Change |
| Raipur | -1% |
| Kolkata | -2% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
2. Long products -Cracking edifice
TMT
Fe 415
12mm
| Location | Change |
| Chennai | 0% |
| Mumbai | -2% |
| Mandi | -2% |
| Kolkata | -2% |
| Delhi | -3% |
| Kanpur | -1% |
| Ahmedabad | 1% |
| Indore | 0% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | -3% |
| Raipur | -1% |
| Kolkata | 2% |
| Delhi | 0% |
| Kanpur | 0% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
ANGL
GRADE A
65X65X6
| Location | Change |
| Chennai | -2% |
| Mumbai | 0% |
| Mandi | 0% |
| Raipur | 0% |
| Kolkata | -2% |
| Delhi | 0% |
| Kanpur | 0% |
| Ahmedabad | 0% |
| Indore | 1% |
| Bangalore | 0% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
CNHL
GRADE A
75/40
| Location | Change |
| Chennai | 0% |
| Mumbai | 0% |
| Mandi | 0% |
| Raipur | 0% |
| Kolkata | 0% |
| Delhi | 0% |
| Kanpur | 0% |
| Ahmedabad | 1% |
| Indore | 1% |
| Bangalore | 0% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
JSTI
GRADE A
250X125
| Location | Change |
| Chennai | 0% |
| Mumbai | 0% |
| Mandi | 0% |
| Raipur | -1% |
| Kolkata | 0% |
| Delhi | 0% |
| Kanpur | -1% |
| Ahmedabad | 1% |
| Indore | 0% |
| Bangalore | 0% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
3. Flat products - Forebodings of Tsunami
HRC
Tube
2.5x1250
| Location | Change |
| Mumbai | -1% |
| Ludhiana | 0% |
| Kolkata | 0% |
| Delhi | 0% |
| Ahmedabad | 0% |
| Indore | 0% |
| Bangalore | 0% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Patra
| Location | Change |
| Ludhiana | -1% |
| Mandi | 1% |
| Delhi | 0% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Plates
GRADE A
8X1250/1500
| Location | Change |
| Chennai | 0% |
| Mumbai | -2% |
| Kolkata | 1% |
| Delhi | 0% |
| Kanpur | 0% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Plates
GRADE B
12-20X2500
| Location | Change |
| Chennai | 0% |
| Mumbai | -1% |
| Raipur | 1% |
| Kolkata | 0% |
| Delhi | 0% |
| Kanpur | -1% |
| Ahmedabad | 0% |
| Indore | -3% |
| Bangalore | 0% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
CR
DSK
0.63x1000
| Location | Change |
| Chennai | 0% |
| Mumbai | -1% |
| Pune | -1% |
| Kolkata | 0% |
| Delhi | 0% |
| Kanpur | 0% |
| Ahmedabad | 0% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
GC
100Gms
0.4
| Location | Change |
| Chennai | -1% |
| Mumbai | -1% |
| Kolkata | 0% |
| Delhi | 0% |
| Kanpur | -1% |
| Bangalore | 0% |
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Indian Export Levels - Succumbing to Sino aggression
| Item | Grade | Size | Delivery | Change |
| PLTS | Structural | 12-40x2.5 | FOB Vizag | 0 |
| HDG | 100Gms | 0.4 | FOB Mumbai | 0 |
| PPGI | Standard RAL | 0.4 | FOB Mumbai | 0 |
Change is on September 25th as compared to September 18th 2009
Change is in USD per tonne
Indian Import Levels - On slippery ground
It is reported that Chinese HR offers are coming at USD 510 pr tonne on CFR basis for SS 400 grades.
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