Indian domestic steel prices continue to exhibit weakening sentiments last week. The Indian Long Product Price Index ILPPI decreased by 32 points whereas Indian Flat Products Index IFPPI dipped by a whoping 117 points. The overall price index INDSPI decreased by 73 points.
| Class | 30-Oct | 06-Nov | Change | % |
| ILPPI | 5958 | 5926 | -32 | -0.5% |
| IFPPI | 7365 | 7247 | -117 | -1.6% |
| INDSPI | 6628 | 6555 | -73 | -1.1% |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 30-Oct | 06-Nov | Change | % |
| PI - TMT | 5633 | 5588 | -45 | -0.8% |
| PI - WRC | 6492 | 6492 | 0 | 0.0% |
| PI - Angle | 5644 | 5586 | -58 | -1.0% |
| PI - Channel | 5697 | 5634 | -63 | -1.1% |
| PI - Joist | 5349 | 5260 | -89 | -1.7% |
PI - Product Index
Flat products
| Category | 30-Oct | 06-Nov | Change | % |
| PI - Narrow Plates | 7052 | 6908 | -143 | -2.0% |
| PI - Wide Plates | 7168 | 7012 | -156 | -2.2% |
| PI - Hot Rolled | 7223 | 7107 | -116 | -1.6% |
| PI - Cold Rolled | 7872 | 7798 | -74 | -0.9% |
| PI - Galvanized | 7809 | 7674 | -136 | -1.7% |
PI - Product Index
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1. Input material -
Input materials exhibited a negative trend across products and locations last week. As per market sources prices of pencil ingot are to face demand pressure this week and may weaken further a bit. This is being attributed to gap between increased supply and reduced demand.
Melting scrap
80:20
HMS
| Location | Change |
| Chennai | 0% |
| Mumbai | -2% |
| Mandi | -1% |
| Kolkata | -1% |
| Kanpur | 0% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
Alang
| Product | Size | Change |
| Ships | Mixed | 1% |
| Plate cuttings | 1” | 1% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
Pencil ingot
| Location | Change |
| Ahmedabad | -1% |
| Bhiwari | -2% |
| Durgapur | -1% |
| Ghaziabad | -3% |
| Hyderabad | 3% |
| Jaipur | -2% |
| Jamshedpur | -1% |
| Kanpur | 0% |
| Kolkata | -3% |
| Mandi | 0% |
| Mumbai | -1% |
| Muzzafarnagar | -2% |
| Nagpur | -1% |
| Raigarh | 0% |
| Raipur | 0% |
| Rourkela | 0% |
| Rudrapur | -1% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
Pig Iron
| Location | Change |
| Raipur | 0% |
| Kolkata | 0% |
| Jallandhar | 0% |
| Agra | 2% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
Sponge iron
| Location | Change |
| Raipur | 0% |
| Kolkata | 0% |
| Bellary | -1% |
| Raigarh | -3% |
| Rourkela | -2% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
2. Long products - Disappointment writ large
Indian demand for long products, mainly for rebar, seems to have vanished off late. Market players are in highly pessimistic mood reminding of the worst periods of recession. The demand of rebar from small and medium project seems to have reduced a lot as many of them have either stopped the work or slowed down the pace. The only saving grace is from large size infrastructure projects, which are continuing to proceed at normal levels.
Indian prime producers are badly hit as despite their reduction in price levels, the gap with secondary producer’s remains above INR 5,000 alluring the diminished demand to migrate to secondary sources. As per reports, secondary rebar makers are selling at INR 27,000 per tonne levels, inclusive of all taxes, as against INR 32,500 per tonne levels from main producers.
On the whole, mood is very negative and as such even secondary players, despite price cutting, are finding it difficult to keep their mills loaded with the orders.
In other words, the demand seems to have stalled a bit defying the projections from the government and Indian steel makers. Market players are not too optimistic for any improvement till the end of 2009. Thus it is anticipated that prices of long products would remain under severe pressure due to low demand in coming times.
TMT
Fe 415
12mm
| Location | Change |
| Ahmedabad | -1% |
| Chennai | 0% |
| Delhi | -1% |
| Indore | -1% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mandi | 0% |
| Mumbai | -1% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | 0% |
| Raipur | 0% |
| Kolkata | 0% |
| Delhi | 0% |
| Kanpur | 0% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
ANGL
GRADE A
65X65X6
| Location | Change |
| Chennai | 0% |
| Mumbai | -1% |
| Mandi | -1% |
| Raipur | -2% |
| Kolkata | 0% |
| Delhi | -2% |
| Kanpur | 0% |
| Ahmedabad | -2% |
| Indore | -2% |
| Bangalore | -2% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
CNHL
GRADE A
75/40
| Location | Change |
| Chennai | 0% |
| Mumbai | -1% |
| Mandi | -1% |
| Raipur | -2% |
| Kolkata | 0% |
| Delhi | -2% |
| Kanpur | -1% |
| Ahmedabad | -2% |
| Indore | -2% |
| Bangalore | -2% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
JSTI
GRADE A
250X125
| Location | Change |
| Chennai | 0% |
| Mumbai | -1% |
| Mandi | 0% |
| Raipur | 0% |
| Kolkata | 0% |
| Delhi | -2% |
| Kanpur | 0% |
| Ahmedabad | -1% |
| Indore | -3% |
| Bangalore | -3% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
3. Flat products - Peak gloom still awaited
The long awaited price adjustment in flat products finally unraveled as the Indian mills came to terms with the near dead domestic demand and threat of import from China, Ukraine and Russia. It is learnt from market sources that HRC and CRC prices have been cut by INR 1500 per tonne whereas HDG prices have been reduced by INR 1000 per tonne from the October levels.
However, the gap between import offers and domestic levels continues to exist. The import offers from China are at USD 505 per tonne to USD 510 per tonne CNF India translate to INR 25,400 per tonne to INR 26,000 per tonne after considering import taxes and expenses as against new domestic level of about INR 29,500 per tonne landed at Mumbai net of ED and VAT (On like to like basis).
Thus the flat product market is in firm grip of pessimism which seems tightening with each passing week as buyers refuse to return .The steel majors had anticipated some flutter after reluctantly giving rebate of INR 1500 per tonne across the board in HRC and CRC and INR 1000 in HDG.
However all aspirations seems to have been contemptuously dismissed as buyers, despite depleted stock, prefer a wait and watch policy with negative signals from international market where despite Chinese let up the pressure seems to be building from Ukrainian and Russian mills who have become aggressive as the mills have ramped up production with capacity utilization touching 60% to 70% mark . However with winter on the anvil there is a slump in domestic demand compelling them to divert volumes in the international market likely to gravitate the prices further.
In India prices which remained firm till September owing to supply constraints as major mills underwent capital maintenance seems to be bulking under pressure of augmented supply as most of the mills are operating full stream whereas demand remains abysmally poor. Steel majors are resorting to desperate measures like price protection and doling out gifts against committed volumes reminiscent of peak recession in October 2008 to lure buyers.
The sentiments will remain mellowed at least till the end of winter in the absence of demand resurrection.
HRC
Tube
2.5x1250
| Location | Change |
| Mumbai | -1% |
| Ludhiana | 2% |
| Kolkata | -3% |
| Delhi | -1% |
| Ahmedabad | -1% |
| Indore | -1% |
| Bangalore | -6% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
Patra
| Location | Change |
| Ludhiana | -1% |
| Mandi | -1% |
| Delhi | -1% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
Plates
GRADE A
8X1250/1500
| Location | Change |
| Chennai | 0% |
| Mumbai | -1% |
| Kolkata | -4% |
| Delhi | -1% |
| Kanpur | -1% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
Plates
GRADE B
12-20X2500
| Location | Change |
| Chennai | 0% |
| Mumbai | -1% |
| Raipur | 0% |
| Kolkata | -5% |
| Delhi | -1% |
| Kanpur | -1% |
| Ahmedabad | -1% |
| Indore | -2% |
| Bangalore | -3% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
CR
DSK
0.63x1000
| Location | Change |
| Chennai | 0% |
| Mumbai | -2% |
| Pune | -2% |
| Kolkata | -2% |
| Delhi | 0% |
| Kanpur | -1% |
| Ahmedabad | 0% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
GC
100Gms
0.4
| Location | Change |
| Chennai | 0% |
| Mumbai | -2% |
| Kolkata | -1% |
| Delhi | -2% |
| Kanpur | -2% |
| Bangalore | 0% |
Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne
4. Indian Export Levels - Hiatus amidst Chinese aggression
The export levels for Indian mills remained static last week despite Chinese threat for higher thicknesses in coated products. On the other hand no transactions were reported for plates as the buyers expectations are quite far away from Indian seller’s expectations due to Ukrainian and Chinese 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 November 6th as compared to October 30th 2009
Change is in USD per tonne
Indian Import Levels - Ambiguity plagues
Chinese offers for HR firmed up a bit last week. HRC in SS 400 in 3mm to 12mm in 1250/1500 is being offered at USD 510 per tonne CFR levels. On the other hand CR grade HR offers are not very transparent after NLMK selling a large parcel at USD 500 CFR levels and
Current offers are at much higher levels.
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