It seems that the latest down cycle in Indian steel market seems to be over after a period of almost 3 months as the domestic steel prices continued the recovery for the second consecutive week.
The last peak in Indian domestic steel prices was in the first half of May 2010 and since than price for both longs and flats had slumped only to show signs of recovery in last 15 days. Although the prices have improved in both long and flat categories, the quantum of recovery is more in longs.
Market players are overly optimistic for long products citing tightness on the input material side as heavy rains has effected iron ore mining operation as well as logistics has also become bottleneck in certain areas. In addition, quite a number of sponge iron units were shut during the down cycle restricting availability.
Moreover, long product producers are hoping that the steel demand is bound to increase as the construction activity would pick up as rainy season is almost over now.
But the overcapacity in long sector in India could prove to be a major obstacle limiting the price recovery. But in the short term steel makers are looking to improve realizations and some are even considering hike in September beginning.
On the other hand, imports of HRC in India have slumped recently owing to hike in international levels. International flat product price have improved by about USD 50 per tonne over the last fortnight. But, the Indian domestic levels have remained dormant owing to surplus inventory and un liquidated imports from the previous months.
Indian traders are shunning imports of hot rolled coils as domestic equivalents now at par with imported material. In the trade off the domestic material with shorter delivery period and better quality accountability is preferred.
Although, it is very difficult to put your finger on inventories in India, unconfirmed reports point that imported stock levels in Mumbai are currently at about 300,000 tonnes to 400,000 tonnes, though down from about 500,000 tonnes to 600,000 tonnes in mid July. As per unconfirmed reports the total HR inventory available in the Indian market, including Indian HR mills inventories, are close to 1 million tonne
Market is hopeful that these inventory levels will substantially drop, perhaps by early September. Indian mills would certainly attempt to capitalize on this parity advantage by hiking levels by INR 1,000 per tonne to INR 1,500 per tonne, which would still see domestic coils being preferred over imports. Festive season would also prop up demand to some extant.
The Indian Long Product Price Index ILPPI went up by 52 points last week whereas Indian Flat Products Index IFPPI improved by 13 points. The overall price index INDSPI went up by 33 points.
| Class | 20-Aug | 27-Aug | Change | % |
| ILPPI | 6856 | 6908 | 52 | 0.8% |
| IFPPI | 7618 | 7631 | 13 | 0.2% |
| INDSPI | 7219 | 7252 | 33 | 0.5% |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 20-Aug | 27-Aug | Change | % |
| PI - TMT | 6725 | 6797 | 72 | 1.1% |
| PI - WRC | 7217 | 7256 | 39 | 0.5% |
| PI - Angle | 6505 | 6558 | 53 | 0.8% |
| PI - Channel | 6630 | 6667 | 37 | 0.6% |
| PI - Joist | 6132 | 6149 | 17 | 0.3% |
PI - Product Index
Flat products
| Category | 20-Aug | 27-Aug | Change | % |
| PI - Narrow Plates | 7174 | 7195 | 21 | 0.3% |
| PI - Wide Plates | 7593 | 7586 | -7 | -0.1% |
| PI - Hot Rolled | 7350 | 7357 | 7 | 0.1% |
| PI - Cold Rolled | 8446 | 8477 | 31 | 0.4% |
| PI - Galvanized | 8114 | 8135 | 21 | 0.3% |
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 |
| Chennai | 8% |
| Hyderabad | 0% |
| Kandla | -1% |
| Kanpur | 2% |
| Kolkata | 0% |
| Mandi | 0% |
| Mumbai | 2% |
| Rudrapur | 1% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
Alang
| Product | Size | Change |
| Plate cuttings | 1" | 2% |
| Ships | Mixed | 2% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
Pencil ingot
| Location | Change |
| Ahmedabad | 1% |
| Alang | 1% |
| Bhiwari | 0% |
| Chennai | 6% |
| Durgapur | 1% |
| Ghaziabad | -1% |
| Hyderabad | -4% |
| Jaipur | 0% |
| Jamshedpur | 0% |
| Kanpur | 1% |
| Kolkata | 0% |
| Mandi | 1% |
| Mumbai | 0% |
| Muzzafarnagar | 1% |
| Nagpur | 0% |
| Raigarh | 2% |
| Raipur | 0% |
| Rourkela | 1% |
| Rudrapur | 2% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
Pig Iron
| Location | Change |
| Agra | 2% |
| Jallandhar | 2% |
| Kolkata | 2% |
| Raipur | 2% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
Sponge iron
| Location | Change |
| Bellary | 4% |
| Kolkata | 0% |
| Raigarh | 1% |
| Raipur | 0% |
| Rourkela | 0% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
2. Long products
Rebar (TMT QST)
Fe 415
12mm
| Location | Change |
| Ahmedabad | 3% |
| Bangalore | 1% |
| Chennai | 5% |
| Delhi | -2% |
| Indore | 1% |
| Kanpur | 0% |
| Kolkata | 1% |
| Mandi | 0% |
| Mumbai | 0% |
| Muzzafarnagar | 0% |
| Raipur | 1% |
| Rudrapur | 0% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | 2% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Raipur | 1% |
| Rudrapur | 0% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
ANGL
Grade A
65X65X6
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | 2% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 1% |
| Kanpur | 1% |
| Kolkata | 2% |
| Mandi | 0% |
| Mumbai | 0% |
| Raipur | 1% |
| Rudrapur | 1% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
CHNL
Grade A
75/40
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | 1% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 2% |
| Kanpur | 0% |
| Kolkata | 1% |
| Mandi | 0% |
| Mumbai | 0% |
| Raipur | 1% |
| Rudrapur | 0% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
JSTI
Grade A
250X125
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 1% |
| Mandi | 0% |
| Mumbai | 0% |
| Raipur | 1% |
| Rudrapur | 0% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
3. Flat products
HRC
Tube
2.5x1250
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 1% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 1% |
| Kolkata | 0% |
| Ludhiana | 2% |
| Mumbai | 0% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
Patra
| Location | Change |
| Delhi | 0% |
| Ludhiana | 1% |
| Mandi | 0% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
Plates
Grade A
8X1250/1500
| Location | Change |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mumbai | 0% |
| Rudrapur | 0% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
Plates
GRADE B
12-20X2500
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mumbai | 0% |
| Raipur | -1% |
| Rudrapur | 0% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
CR
DSK
0.63x1000
| Location | Change |
| Ahmedabad | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mumbai | 1% |
| Pune | 1% |
| Rudrapur | 0% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
GP
100Gms
0.4
| Location | Change |
| Mumbai | 1% |
| Chennai | 0% |
| Kolkata | 0% |
| Delhi | 0% |
| Ludhiana | 1% |
| Kanpur | 0% |
| Rudrapur | 0% |
| Bangalore | 0% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
GC
100Gms
0.4
| Location | Change |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mumbai | 1% |
| Ludhiana | 2% |
| Rudrapur | 0% |
Change is on Aug 27th 2010 as compared to Aug 20th 2010
www.steelprices-india.com is a comprehensive portal that provides domestic pricing information for benchmark steel products in each category at select location in India on a regular basis 5 days a week and international price levels on a weekly basis.
As steel in each category comes in hundreds of grades shapes and sizes, we have taken benchmark products in each category at select locations to cover the entire basket of garden variety of steel products including input material for steel making and processing.
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
5. FOB Levels - China, Ukraine, Russia and Turkey
Methodology and access
1. Benchmark products in each category with fixed commonly used sizes and grades
2. Base prices or effective, as per market trends
3. Average transaction levels which have settled well, based on continuous interactions with domestic mills, overseas suppliers, importers stockiest & service centers and buyers
4. On fixed market oriented payment terms
5. Daily updates
6. Data available since July 2008
5. Access through web site
Price basis
Without ED and VAT for all products except for rebar and sections
Other features
The prices are displayed on weekly and monthly basis. They also have search facilities to access old data from the archives. Graphical representation of trends and comparison of price movement 2 or more products is also available.
In addition, you can monitor currency exchange rates, metal prices, BDI for the day as well as access their archives for past data.
Other features include converters for weight, length etc, glossary and advanced search functions. The benchmark product price information is supplemented by global pricing news.
Subscription charges for 12 months access
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