With the economic indicators pouring out gloom with inflation entering the danger zone at 7.23% (WPI) and IIP plummeting by 3.5% y-o-y in March the momentum is petering out. Long product demand construed as reflection of economic growth is the first casualty.
Having weathered the recessionary headwinds in 2008 Indian economy reared at an astonishing pace for couple of year .The first signs of peril emerging in August 2011 as the US and European economic crisis deepened the Indian citadel ruptured. With the passage of Q3 in oblivion and bulk of Q4 in expectation it fortunes took a turn in March before the closure of FY12. Discounting any inordinate enthusiasm in demand in March it was year-end rush with the urgency to accomplish targets. Onrush was prodded on by power shortage and iron ore scarcity. As speculation became rife secondary sector stole a march over the primary producers with prices of TMT eclipsing the pre recessionary peaks.
Setting new levels it peaked at INR 57000 per tonne (incl all taxes). However since early April sputtering commenced in Southern locations as the market sensed foul in such astronomical levels. As the buyers became reclusive the correction was equally hard with nearly INR 6000 per tonne loss with a fortnight.
Northern locations had longer run of luck as price levels of Ingots and TMT bars stuck on for another fortnight under expectation of pick up in buying as the lending rates were reduced by 50 basis points by RBI.
However May has dispelled all myths with price correction galore across the region. Primary mills who had never flaunted exponential hikes made a prudent rollover whereas the secondary sector bore the pain of hard landing.
However economic slowdown and atrophy setting in Stock market has made the market despondent. Chances of further easing of lending rate vanishing in the aftermath of resurging inflation certainly dented the aspirations of infrastructure and reality sector craving for credit.
Coming days would tread beaten path of decline with the Indian economy and its derivatives remaining morose.
The Indian Long Product Price Index ILPPI continued in downward trends with 56 points last week whereas Indian Flat Products Index IFPPI has also gone down by 35 points. The overall price index INDSPI declined by 46 points.
| Class | 11-May | 18-May | Change | % |
| ILPPI | 9590 | 9534 | -56 | -0.6% |
| IFPPI | 9161 | 9126 | -35 | -0.4% |
| INDSPI | 9386 | 9340 | -46 | -0.5% |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 11-May | 18-May | Change | % |
| PI - TMT | 9876 | 9798 | -78 | -0.8% |
| PI - WRC | 9728 | 9671 | -57 | -0.6% |
| PI - Angle | 8952 | 8933 | -19 | -0.2% |
| PI - Channel | 9078 | 9065 | -13 | -0.1% |
| PI - Joist | 8338 | 8323 | -15 | -0.2% |
PI - Product Index
Flat products
| Category | 11-May | 18-May | Change | % |
| PI - Narrow Plates | 8813 | 8783 | -30 | -0.3% |
| PI - Wide Plates | 9122 | 9067 | -55 | -0.6% |
| PI - Hot Rolled | 8952 | 8922 | -30 | -0.3% |
| PI - Cold Rolled | 9823 | 9774 | -49 | -0.5% |
| PI - Galvanized | 9541 | 9519 | -22 | -0.2% |
PI - Product Index
These indices have base of 10,000 as on July 1st 2008
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1. Input material
Melting scrap
80:20
HMS
| Location | Change |
| Bangalore | 0% |
| Chennai | 0% |
| Hyderabad | 1% |
| Kandla | -2% |
| Kanpur | 0% |
| Kolkata | 5% |
| Ludhiana | -3% |
| Mandi | 1% |
| Mumbai | -3% |
| Rudrapur | 0% |
Change is on May 18th as compared to 11th May 2012
Alang
| Product | Size | Change |
| Plate cuttings | 1" | -1.8% |
| Ships | Mixed | -0.4% |
Change is on May 18th as compared to 11th May 2012
Pencil ingot
| Location | Change |
| Ahmedabad | 0% |
| Alang | -1% |
| Bhiwari | -4% |
| Chennai | 0% |
| Durgapur | -3% |
| Ghaziabad | -2% |
| Hyderabad | -4% |
| Jaipur | -5% |
| Jamshedpur | -2% |
| Kanpur | 0% |
| Kolkata | -2% |
| Ludhiana | -3% |
| Mandi | -3% |
| Mumbai | -3% |
| Muzaffarnagar | -4% |
| Nagpur | 3% |
| Raigarh | 0% |
| Raipur | -1% |
| Rourkela | -1% |
| Rudrapur | 0% |
Change is on May 18th as compared to 11th May 2012
Pig Iron
| Location | Change |
| Agra | 0% |
| Jallandhar | -1% |
| Kolkata | -1% |
| Ludhiana | 1% |
| Raipur | 2% |
Change is on May 18th as compared to 11th May 2012
Sponge iron
| Location | Change |
| Bellary | -1% |
| Kolkata | 0% |
| Ludhiana | -2% |
| Raigarh | -2% |
| Raipur | -2% |
| Rourkela | -3% |
Change is on May 18th as compared to 11th May 2012
2. Long products
Rebar (TMT QST)
Fe 415
12mm
| Location | Change |
| Ahmedabad | -1% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | -3% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | -2% |
| Mandi | -1% |
| Mumbai | -3% |
| Muzaffarnagar | 0% |
| Raipur | 2% |
| Rudrapur | 0% |
Change is on May 18th as compared to 11th May 2012
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | 0% |
| Delhi | 1% |
| Kanpur | 0% |
| Kolkata | 0% |
| Raipur | -2% |
| Rudrapur | 0% |
Change is on May 18th as compared to 11th May 2012
ANGL
Grade A
65x65x6
| Location | Change |
| Ahmedabad | -1% |
| Bangalore | 3% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 0% |
| Kanpur | -1% |
| Kolkata | 0% |
| Ludhiana | -2% |
| Mandi | -2% |
| Mumbai | -2% |
| Raipur | -3% |
| Rudrapur | 0% |
Change is on May 18th as compared to 11th May 2012
CHNL
Grade A
75/40
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 2% |
| Chennai | 0% |
| Delhi | 1% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | -1% |
| Mandi | -1% |
| Mumbai | -2% |
| Raipur | -3% |
| Rudrapur | 0% |
Change is on May 18th as compared to 11th May 2012
JSTI
Grade A
250x125
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 2% |
| Chennai | 0% |
| Delhi | 1% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | -1% |
| Mandi | -1% |
| Mumbai | -2% |
| Raipur | -3% |
| Rudrapur | 0% |
Change is on May 18th as compared to 11th May 2012
3. Flat products
HRC
Tube
2.5x1250
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | -1% |
| Kolkata | -1% |
| Ludhiana | 1% |
| Mumbai | 0% |
Change is on May 18th as compared to 11th May 2012
Patra
| Location | Change |
| Delhi | 0% |
| Ludhiana | -2% |
| Mandi | -2% |
Change is on May 18th as compared to 11th May 2012
Plates
Grade A
8x1250/1500
| Location | Change |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | -1% |
| Kolkata | -1% |
| Mumbai | 0% |
| Rudrapur | 0% |
Change is on May 18th as compared to 11th May 2012
Plates
GRADE B
12-20x2500
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | -1% |
| Kanpur | 0% |
| Kolkata | -1% |
| Mumbai | 0% |
| Raipur | -4% |
| Rudrapur | 0% |
Change is on May 18th as compared to 11th May 2012
CR
DSK
0.63x1000
| Location | Change |
| Ahmedabad | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | -1% |
| Kolkata | -1% |
| Ludhiana | 0% |
| Mumbai | -1% |
| Pune | 0% |
| Rudrapur | -1% |
Change is on May 18th as compared to 11th May 2012
GP
100Gms
0.4
| Location | Change |
| Mumbai | 0% |
| Chennai | 0% |
| Kolkata | 0% |
| Delhi | -1% |
| Ludhiana | 1% |
| Kanpur | 0% |
| Rudrapur | 0% |
| Bangalore | 0% |
Change is on May 18th as compared to 11th May 2012
GC
100Gms
0.4
| Location | Change |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | -1% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mumbai | 0% |
| Ludhiana | 1% |
| Rudrapur | 0% |
Change is on May 18th as compared to 11th May 2012
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Products covered
1. Input materials - Iron ore, scrap, sponge iron, pig iron pencil ingot, billets and blooms
2. Long products - Rebar, wire rod, angle, channel and joists
3. Flat products - Narrow plates, wide plates, HR, CR and galvanized
4. Others - Pipes
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