Last week unfolded the gory fact sheet of Indian economy with GDP notching 7.7% a thudding fall from 9.3% Q1 2011. Pessimism has already engulfed the domestic economy in the aftermath of global turmoil triggered in August after the US downgrade. EU 27 being the progenitor of misery with a concentric debt crisis spreading its tentacles across the globe kept the bourses in suspended animation.
Silhouetted against murky scenario the Indian GDP seems impressive. Candidly it masks glaring disappointments in vital demand generating sectors prominently, construction, manufacturing and mines. Whereas the construction sector grew by a meager 1.2% compared to 7.7% in last fiscal the other two clocked a mere 7.2% and 1.2% against 2011 figures of 12.7% and 7.7% respectively.
The abysmal performance in construction segment will get unlikely altered with the noose tightening on credit. The cost of capital being a major roadblock is all set to escalate in the next RBI review on 16th September. Market is already reconciled to a minimum 25 basis points increase in lending rate. Unrelenting inflation portending to touch double digit and a rather heartening GDP at 7.7% is sufficient cue for the RBI to flex its muscles.
Furthermore with the monsoon being 1% short inflation is unlikely to abate in Q3 leading to couple of rounds of further hike in lending rate before the year draws to close. Buying and CAPEX will be the first casualty significantly curtailing demand from new projects in the infrastructure as well as reality. The only wild card here is heightened turmoil in the global financial markets and worries over global growth outlook which could pose downside risks to domestic growth drivers. Indian reality sector will face gloom in the coming 1 year beset with liquidity crunch, low sales and pressure on margins. The market will be characterized by delayed projects, hike in unsold housing stock and developers might have to offer new projects at 10-15% discount, all because of a slowdown in property demand.
Hence the demand for construction steel viz., rebar and structural is unlikely to redeem in the short as well as long term unless there are radical policy thrusts by the government to kick start massive infrastructure activities.
On the other hand, citing the overbearing cost compulsions but actually driven by strengthening of INR by almost 4% to 5%, a major producer is reported to have hiked the HRC prices by INR 750 per tonne to NR 1000 per tonne. At the same time other manufacturer has made a token hike of INR 500 per tonne just testing its toe in the troubled waters.
Most of the sellers are sitting over healthy stocks as production has been going on full swing which has not been supported by buying. Some of the manufactures located in the Western side have become primarily exporters seeing no avenue in domestic market.
With the domestic HRC prices prevailing at INR 35800 per tonne excluding ED & VAT, parity is evenly balanced vis-à-vis import. However the Indian mills are hopeful of the post monsoon buying to pick up in September thereby opting for token hike and roll over to gauge the direction of the precariously balanced market.
The Indian Long Product Price Index ILPPI continued in downward trends with 21 point last week whereas Indian Flat Products Index IFPPI has gone up by 11 points. The overall price index INDSPI declined by 6 points.
| Class | 26-Aug | 02-Sep | Change | % |
| ILPPI | 8404 | 8383 | -21 | -0.2% |
| IFPPI | 8584 | 8595 | 11 | 0.1% |
| INDSPI | 8489 | 8484 | -6 | -0.1% |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 26-Aug | 02-Sep | Change | % |
| PI - TMT | 8505 | 8461 | -44 | -0.5% |
| PI - WRC | 8591 | 8584 | -7 | -0.1% |
| PI - Angle | 8018 | 8016 | -2 | 0.0% |
| PI - Channel | 8097 | 8095 | -2 | 0.0% |
| PI - Joist | 7457 | 7453 | -4 | 0.0% |
PI - Product Index
Flat products
| Category | 26-Aug | 02-Sep | Change | % |
| PI - Narrow Plates | 8194 | 8212 | 19 | 0.2% |
| PI - Wide Plates | 8536 | 8548 | 12 | 0.1% |
| PI - Hot Rolled | 8248 | 8264 | 15 | 0.2% |
| PI - Cold Rolled | 9514 | 9514 | 0 | 0.0% |
| PI - Galvanized | 9241 | 9241 | 0 | 0.0% |
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 | 0% |
| Kandla | 0% |
| Kanpur | 1% |
| Kolkata | 0% |
| Ludhiana | 0% |
| Mandi | -1% |
| Mumbai | 0% |
| Rudrapur | 0% |
Change is on Sep 2nd as compared to 26th Aug 2011
Alang
| Product | Size | Change |
| Plate cuttings | 1" | 0% |
| Ships | Mixed | 1% |
Change is on Sep 2nd as compared to 26th Aug 2011
Pencil ingot
| Location | Change |
| Ahmedabad | 1% |
| Alang | 1% |
| Bhiwari | 0% |
| Chennai | 0% |
| Durgapur | 1% |
| Ghaziabad | 1% |
| Hyderabad | 0% |
| Jaipur | 0% |
| Jamshedpur | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | -1% |
| Mandi | 0% |
| Mumbai | 0% |
| Muzzafarnagar | 1% |
| Nagpur | -1% |
| Raigarh | -1% |
| Raipur | -1% |
| Rourkela | -2% |
| Rudrapur | 0% |
Change is on Sep 2nd as compared to 26th Aug 2011
Pig Iron
| Location | Change |
| Agra | 0% |
| Jallandhar | 0% |
| Kolkata | 0% |
| Ludhiana | 0% |
| Raipur | 0% |
Change is on Sep 2nd as compared to 26th Aug 2011
Sponge iron
| Location | Change |
| Bellary | -1% |
| Kolkata | 1% |
| Ludhiana | 1% |
| Raigarh | 0% |
| Raipur | -1% |
| Rourkela | -2% |
Change is on Sep 2nd as compared to 26th Aug 2011
2. Long products
Rebar (TMT QST)
Fe 415
12mm
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | -1% |
| Indore | -2% |
| Kanpur | 0% |
| Kolkata | -2% |
| Ludhiana | 1% |
| Mandi | 0% |
| Mumbai | 0% |
| Muzzafarnagar | 0% |
| Raipur | -1% |
| Rudrapur | 0% |
Change is on Sep 2nd as compared to 26th Aug 2011
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Raipur | -1% |
| Rudrapur | 0% |
Change is on Sep 2nd as compared to 26th Aug 2011
ANGL
Grade A
65X65X6
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | -1% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | 0% |
| Mandi | 0% |
| Mumbai | 0% |
| Raipur | -1% |
| Rudrapur | 0% |
Change is on Sep 2nd as compared to 26th Aug 2011
CHNL
Grade A
75/40
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | -1% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | 0% |
| Mandi | 0% |
| Mumbai | 0% |
| Raipur | -1% |
| Rudrapur | 0% |
Change is on Sep 2nd as compared to 26th Aug 2011
JSTI
Grade A
250X125
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | 0% |
| Mandi | 0% |
| Mumbai | 0% |
| Raipur | -1% |
| Rudrapur | 0% |
Change is on Sep 2nd as compared to 26th Aug 2011
3. Flat products
HRC
Tube
2.5x1250
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 1% |
| Indore | 0% |
| Kolkata | 0% |
| Ludhiana | 1% |
| Mumbai | 0% |
Change is on Sep 2nd as compared to 26th Aug 2011
Patra
| Location | Change |
| Delhi | 1% |
| Ludhiana | 1% |
| Mandi | 0% |
Change is on Sep 2nd as compared to 26th Aug 2011
Plates
Grade A
8X1250/1500
| Location | Change |
| Chennai | 0% |
| Delhi | 1% |
| Kanpur | 0% |
| Kolkata | 1% |
| Mumbai | 0% |
| Rudrapur | 0% |
Change is on Sep 2nd as compared to 26th Aug 2011
Plates
GRADE B
12-20X2500
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 1% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 1% |
| Mumbai | 0% |
| Raipur | -1% |
| Rudrapur | 0% |
Change is on Sep 2nd as compared to 26th Aug 2011
CR
DSK
0.63x1000
| Location | Change |
| Ahmedabad | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | 0% |
| Mumbai | 0% |
| Pune | 0% |
| Rudrapur | 0% |
Change is on Sep 2nd as compared to 26th Aug 2011
GP
100Gms
0.4
| Location | Change |
| Mumbai | 0% |
| Chennai | 0% |
| Kolkata | 0% |
| Delhi | 0% |
| Ludhiana | 0% |
| Kanpur | 0% |
| Rudrapur | 0% |
| Bangalore | 0% |
Change is on Sep 2nd as compared to 26th Aug 2011
GC
100Gms
0.4
| Location | Change |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mumbai | 0% |
| Ludhiana | 0% |
| Rudrapur | 0% |
Change is on Sep 2nd as compared to 26th Aug 2011
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
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2. Send mail to admin@steelprices-india.com.
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