Indian domestic steel prices exhibited strong upward sentiments last week. The Indian Long Product Price Index ILPPI increased by an equivalent 210 points, after increase of 231 points in previous week whereas Indian Flat Products Index IFPPI increased by 78 points as compared to a dip of 37 points in Week 50. The overall price index INDSPI increased by 147 points as against 103 points increase in Week 50.
| Class | 11-Dec | 18-Dec | Change | % |
| ILPPI | 6091 | 6301 | 210 | 3.4% |
| IFPPI | 7049 | 7126 | 78 | 1.1% |
| INDSPI | 6547 | 6694 | 147 | 2.2% |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 11-Dec | 18-Dec | Change | % |
| PI - TMT | 5872 | 6146 | 274 | 4.7% |
| PI - WRC | 6552 | 6682 | 130 | 2.0% |
| PI - Angle | 5771 | 6010 | 239 | 4.1% |
| PI - Channel | 5767 | 6053 | 286 | 5.0% |
| PI - Joist | 5358 | 5553 | 195 | 3.6% |
PI - Product Index
Flat products
| Category | 11-Dec | 18-Dec | Change | % |
| PI - Narrow Plates | 6671 | 6732 | 61 | 0.9% |
| PI - Wide Plates | 6821 | 6874 | 54 | 0.8% |
| PI - Hot Rolled | 6875 | 6981 | 106 | 1.5% |
| PI - Cold Rolled | 7669 | 7736 | 67 | 0.9% |
| PI - Galvanized | 7568 | 7545 | -23 | -0.3% |
PI - Product Index
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1. Input material - Mercurial growth
Scrap prices have shown exemplary revival in the last fortnight, by up to 18% in most categories. The blitzkrieg is all the more prominent in the backdrop of absolute depression during the whole of last Qtr (July-Sept).
The quantum leap from December 2nd 2009 to .December 17th 2009 is shown below:
1. Steel scrap - Up by up to 18.3%
| Location | Change |
| Mumbai | 6.3% |
| Chennai | 9.7% |
| Kolkata | 8.6% |
| Mandi | 8.1% |
| Kandla | 6.7% |
| Kanpur | 16.0% |
| Rudrapur | 18.3% |
| Hyderabad | 13.0% |
2. Ship breaking - Up by up to 12.1%
| Product | Ship Scrap | Plate cuttings |
| Grade | Melting | Rolling |
| Size | Mixed | 1" |
| Alang | 9.2% | 12.1% |
3. Sponge iron - Up by up to 18.6%
| Location | Change |
| Kolkata | 15.7% |
| Raipur | 17.4% |
| Bellary | 18.6% |
| Raigarh | 16.4% |
| Rourkela | 6.9% |
4. Pencil ingot - Up by up to 18.2%
| Location | Change |
| Mumbai | 11.4% |
| Kolkata | 10.1% |
| Mandi | 8.9% |
| Raipur | 13.3% |
| Kanpur | 13.8% |
| Rudrapur | 11.6% |
| Ahmedabad | 11.3% |
| Ghaziabad | 10.4% |
| Muzzafarnagar | 12.1% |
| Hyderabad | 18.2% |
| Raigarh | 15.0% |
| Durgapur | 13.6% |
| Nagpur | 14.2% |
| Jamshedpur | 16.2% |
| Jaipur | 10.7% |
| Rourkela | 12.8% |
| Bhiwari | 11.1% |
As the demand for long product did not change during this period, the surge was being attributed primarily to tightness in iron ore supply resulting from heavy handed action of government in closure of illegal mining. It is noteworthy that domestic prices of iron ore did not move in tandem. Even after considering that 1.6 tonne of iron ore is required to make 1 tonne of steel, the hike in prices of lumps was just under INR 700 per tonne contradicting the logic of input pressure.
Some market players were giving more weightage to the fact that spot prices of electricity, during this period went up from INR 2.5 per unit to INR 3.5 per unit, alluring sponge iron producers, who run waste gas based small power plants to divert their electricity output for trading rather than captive use for producing billets or ingots.
The first signals of waning temperament appeared on December 17th 2009 after a golden run of 15 days for long products in India. The abrupt end to spirited run for input as well as long products on December 17th 2009 was evident from the slide in price at the vital locations.
1. Sponge iron - INR 100 per tonne at Raipur
2. HMS - Down by INR 92 per tonne at Mandi and Raipur
3. Pencil ingot - Down by INR 92 per tonne at Kolkata, INR 400 at Ahmedabad , INR 200 at Ghaziabad , INR 267 at Muzzafarnagar and INR 185 at Nagpur.
This was followed by further dip on December 18th 2009
1. Sponge iron - INR 400 per tonne at Bellary
2. HMS - Down by INR 500 per tonne at Kandla
3. Pencil ingot - Down by INR 200 at Mumbai, INR 92 at Mandi, INR 185 at Raipur, INR 300 at Ahmedabad, INR 92 at Nagpur, INR 277 at Rourkela and INR 300 at Bhiwari.
The dip gave rise to resurgence of despondency. However a counter rally on the following day gave heaved a sigh of relief that the uptrend was there to stay for some time. Pencil ingot firmed up by INR 600 at Mandi on December 19th 2009 (Saturday) leading to increase in rebar prices by INR 500 per tonne on December 20th 2009 (Sunday).
It would be improper to hazard a definite trend for the time being and wisdom demands that the movements during the ensuing weeks will crystallize a certainty in the market.
Melting scrap
80:20
HMS
| Location | Change |
| Chennai | 6% |
| Kandla | 6% |
| Kanpur | 9% |
| Kolkata | 5% |
| Mandi | 2% |
| Mumbai | 3% |
Change is on December 18th as compared to December 11th 2009
Alang
| Product | Size | Change | Deviation |
| Plate cuttings | 1" | 6% | 1100 |
| Ships | Mixed | 4% | 600 |
Change is on December 18th as compared to December 11th 2009
Pencil ingot
| Location | Change |
| Ahmedabad | 5% |
| Bhiwari | 4% |
| Durgapur | 7% |
| Ghaziabad | 5% |
| Hyderabad | 12% |
| Jaipur | 4% |
| Jamshedpur | 8% |
| Kanpur | 7% |
| Kolkata | 5% |
| Mandi | 4% |
| Mumbai | 4% |
| Muzzafarnagar | 5% |
| Nagpur | 5% |
| Raigarh | 7% |
| Raipur | 5% |
| Rourkela | 5% |
| Rudrapur | 8% |
Change is on December 18th as compared to December 11th 2009
Pig Iron
| Location | Change |
| Agra | 5% |
| Jallandhar | 6% |
| Kolkata | 5% |
| Raipur | 6% |
Change is on December 18th as compared to December 11th 2009
Sponge iron
| Location | Change |
| Bellary | 7% |
| Kolkata | 5% |
| Raigarh | 6% |
| Raipur | 8% |
| Rourkela | 8% |
Change is on December 18th as compared to December 11th 2009
2. Long products - Catches wild fire
Long product prices were on roller coaster ride cajoled by hike in iron ore and other downstream input pressure. It is noteworthy that the growth in scrap, pencil ingot and TMT price has been more than proportionate than the increase in iron ore prices giving air to the notion that the spike is critically poised on speculation rather than demand.
TMT
Fe 415
12mm
| Location | Change |
| Ahmedabad | 7% |
| Chennai | 4% |
| Delhi | 6% |
| Indore | 6% |
| Kanpur | 5% |
| Kolkata | 4% |
| Mandi | 4% |
| Mumbai | 4% |
| Raipur | 9% |
Change is on December 18th as compared to December 11th 2009
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | 0% |
| Delhi | 4% |
| Kanpur | 1% |
| Kolkata | 2% |
| Raipur | 4% |
Change is on December 18th as compared to December 11th 2009
ANGL
Grade A
65X65X6
| Location | Change |
| Ahmedabad | 6% |
| Bangalore | 7% |
| Chennai | 2% |
| Delhi | 7% |
| Indore | 6% |
| Kanpur | 4% |
| Kolkata | 2% |
| Mandi | 4% |
| Mumbai | 4% |
| Raipur | 4% |
Change is on December 18th as compared to December 11th 2009
CNHL
Grade A
75/40
| Location | Change |
| Ahmedabad | 6% |
| Bangalore | 7% |
| Chennai | 5% |
| Delhi | 5% |
| Indore | 5% |
| Kanpur | 8% |
| Kolkata | 2% |
| Mandi | 4% |
| Mumbai | 4% |
| Raipur | 5% |
Change is on December 18th as compared to December 11th 2009
JSTI
Grade A
250X125
| Location | Change |
| Ahmedabad | 6% |
| Bangalore | 7% |
| Chennai | 2% |
| Delhi | 3% |
| Indore | 4% |
| Kanpur | 5% |
| Kolkata | 0% |
| Mandi | 4% |
| Mumbai | 4% |
| Raipur | 3% |
Change is on December 18th as compared to December 11th 2009
3. Flat products - India tunes in with global movements
Indian steel giant took the first step to in cash firmer global market, especially China, by announcing that it may increase steel prices in January as market is improving. Others, except TATA Steel followed immediately. Bhushan Steel Limited said that it will increase prices of its products by up to INR 1500 a tonne next month. JSW Steel also gave feelers that there is a possibility of JSW increasing its prices. Essar Steel official said the prices could be revised upwards next month.
ON the other hand ArcelorMittal announced 5% hike in there export offers of HRC to India.
All these gave a positive direction and flat products took about turn last week and prices of flat products, which had been on down trend for quite long, showed some increase at some locations last week.
HRC
Tube
2.5x1250
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Delhi | 4% |
| Indore | -1% |
| Kolkata | 1% |
| Ludhiana | 1% |
| Mumbai | 1% |
Change is on December 18th as compared to December 11th 2009
Patra
| Location | Change |
| Delhi | 4% |
| Ludhiana | 5% |
| Mandi | 2% |
Change is on December 18th as compared to December 11th 2009
Plates
Grade A
8X1250/1500
| Location | Change |
| Chennai | 2% |
| Delhi | 4% |
| Kanpur | 0% |
| Kolkata | 1% |
| Mumbai | 1% |
Change is on December 18th as compared to December 11th 2009
Plates
GRADE B
12-20X2500
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 3% |
| Delhi | 1% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 1% |
| Mumbai | 1% |
| Raipur | 0% |
Change is on December 18th as compared to December 11th 2009
CR
DSK
0.63x1000
| Location | Change |
| Ahmedabad | 0% |
| Chennai | 0% |
| Delhi | 1% |
| Kanpur | 1% |
| Kolkata | 2% |
| Mumbai | 1% |
| Pune | 1% |
Change is on December 18th as compared to December 11th 2009
GC
100Gms
0.4
| Location | Change |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 1% |
| Kolkata | 1% |
| Mumbai | 1% |
Change is on December 18th as compared to December 11th 2009
4. Indian Export Levels - Opportunistic moves
Export levels of HDG and PPGI from Indian mills surged last week in line with increased offers form Chinese mills, which changed perception of buyers about cheaper sources.
| Item | Grade | Size | Delivery | Change |
| HDG | 100Gms | 0.4 | FOB Mumbai | 10 |
| HDG | 100Gms | 0.58 | FOB Mumbai | 50 |
| HDG | 275Gms | 0.75 | FOB Mumbai | 20 |
| PLTS | Structural | 12-40x2.5 | FOB Vizag | 0 |
| PPGI | Standard RAL | 0.4 | FOB Mumbai | 40 |
Change is on December 18th as compared to December 11th 2009
Change is in USD per tonne
5. Import Levels - HR climbs
It is learnt that import offers for HR increased by 4% to 5% last week hovering around USD 550 per tonne to USD 560 per tonne CNF India for base.
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