Indian domestic steel prices remained on positive trend last week. While the long product prices posted gains for 4th consecutive week, flat products gained for 5th consecutive week.
The overall gain in last 30 days is about 2.7% for both long and flat products. The sustained buoyancy clearly reflects that the worst is over for both the categories, at least for the time being.
The Indian Long Product Price Index ILPPI continued inclining by 89 points last week whereas Indian Flat Products Index IFPPI surged by 40 points. The overall price index INDSPI went up by 66 points.
| Class | 03-Sep | 10-Sep | Change | % |
| ILPPI | 6927 | 7016 | 89 | 1.3% |
| IFPPI | 7753 | 7793 | 40 | 0.5% |
| INDSPI | 7320 | 7386 | 66 | 0.9% |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 03-Sep | 10-Sep | Change | % |
| PI - TMT | 6845 | 7000 | 155 | 2.3% |
| PI - WRC | 7234 | 7276 | 42 | 0.6% |
| PI - Angle | 6642 | 6717 | 75 | 1.1% |
| PI - Channel | 6663 | 6696 | 33 | 0.5% |
| PI - Joist | 6192 | 6243 | 51 | 0.8% |
PI - Product Index
Flat products
| Category | 03-Sep | 10-Sep | Change | % |
| PI - Narrow Plates | 7302 | 7318 | 16 | 0.2% |
| PI - Wide Plates | 7693 | 7720 | 27 | 0.4% |
| PI - Hot Rolled | 7461 | 7504 | 43 | 0.6% |
| PI - Cold Rolled | 8642 | 8689 | 47 | 0.5% |
| PI - Galvanized | 8317 | 8372 | 55 | 0.7% |
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 | 0% |
| Hyderabad | 0% |
| Kandla | 2% |
| Kanpur | 1% |
| Kolkata | 4% |
| Mandi | 1% |
| Mumbai | 2% |
| Rudrapur | 1% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
Alang
| Product | Size | Change |
| Plate cuttings | 1" | 4% |
| Ships | Mixed | 2% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
Pencil ingot
| Location | Change |
| Ahmedabad | 2% |
| Alang | 3% |
| Bhiwari | 1% |
| Chennai | 0% |
| Durgapur | 2% |
| Ghaziabad | 1% |
| Hyderabad | 7% |
| Jaipur | 1% |
| Jamshedpur | 1% |
| Kanpur | 2% |
| Kolkata | 3% |
| Mandi | 1% |
| Mumbai | 2% |
| Muzzafarnagar | 0% |
| Nagpur | 2% |
| Raigarh | 0% |
| Raipur | 0% |
| Rourkela | 0% |
| Rudrapur | 1% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
Pig Iron
| Location | Change |
| Agra | 0% |
| Jallandhar | 1% |
| Kolkata | -1% |
| Raipur | -1% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
Sponge iron
| Location | Change |
| Bellary | 4% |
| Kolkata | 13% |
| Raigarh | 2% |
| Raipur | 2% |
| Rourkela | 7% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
2. Long products
The long product prices in India have exhibited a reverberating start in September. It is noteworthy the market had an extended hiatus of 5 months wherein the hopes of revival had been belied. The turnaround came knocking just when the desperation seemed unending. Albeit for extraneous reasons reprieve was always welcome. The unprecedented spike in international scrap levels had inevitable fallout on the domestic levels as the input costs soared. Secondary manufacturers where bludgeoned to push the prices. Ironically just round this time steel majors sitting over burgeoning stocks opted for price rollover rather than reduction bringing them at par with the secondary levels.
This prompted the fence sitters to opt for primary material rather than rerolled. As fallout several rerollers and mini furnace operators were compelled to shut down.
Come September with monsoon on the wane the market was in for an early acceleration for the following reasons
Input costs soared with scrap prices on fire and sponge iron manufacturers forming a cartel in the production hub of Raipur to withstand depressive onslaught.
Project demand which had shrunk to just in time levels have been unleashed as they are due for half yearly review and with the inflation setting in cheaper procurement was has been triggered before it is late.
Replenishment of depleted stocks with the traders and stockists too became inevitable in this run up.
September heralded an ambitious price increment of nearly INR 1000 per tonne by steel majors and secondary manufacturers alike. The inferno has razed unabated.
It is expected that the secondary manufacturers are expected to play truant as a survival tactics by pushing the prices towards month end thereby exciting primary mills into over indulgence and tactfully pulling the rug by announcing price reduction to regain lost ground and liquidate stocks.
Rebar (TMT QST)
Fe 415
12mm
| Location | Change |
| Ahmedabad | 4% |
| Bangalore | 2% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 2% |
| Kanpur | 4% |
| Kolkata | 5% |
| Mandi | 1% |
| Mumbai | 2% |
| Muzzafarnagar | 3% |
| Raipur | 0% |
| Rudrapur | 3% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 4% |
| Kolkata | 0% |
| Raipur | 0% |
| Rudrapur | 4% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
ANGL
Grade A
65X65X6
| Location | Change |
| Ahmedabad | 2% |
| Bangalore | 1% |
| Chennai | 0% |
| Delhi | 1% |
| Indore | 1% |
| Kanpur | 3% |
| Kolkata | 2% |
| Mandi | 1% |
| Mumbai | 2% |
| Raipur | 0% |
| Rudrapur | 3% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
CHNL
Grade A
75/40
| Location | Change |
| Ahmedabad | 2% |
| Bangalore | -2% |
| Chennai | 0% |
| Delhi | 1% |
| Indore | 1% |
| Kanpur | 3% |
| Kolkata | 1% |
| Mandi | 1% |
| Mumbai | 2% |
| Raipur | 0% |
| Rudrapur | 3% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
JSTI
Grade A
250X125
| Location | Change |
| Ahmedabad | 2% |
| Bangalore | 1% |
| Chennai | 0% |
| Delhi | 1% |
| Indore | 1% |
| Kanpur | 3% |
| Kolkata | 0% |
| Mandi | 1% |
| Mumbai | 2% |
| Raipur | 0% |
| Rudrapur | 2% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
3. Flat products
The international flat product prices are on roller coaster having appreciated by USD 50 per tonne in a month. This has inspired the Indian mill owners to take a call at price revision after a gap of 4 months. Just when the domestic market seemed to have entered an abyss some light was observed in the oblivion.
The recent hike by INR 750 per tonne to INR 1500 per tonne is much desired exercise indulged by manufacturers to narrow the gap between import offers and domestic levels.
Although the international price levels had evinced buoyancy about a month back it took them a while to react having swallowed the bitter pill earlier.
Import parity calculation
| | In USD | IN INR |
| CFR Price | 640 | |
| Custom Duty | 36 | |
| Port Expenses | 10 | |
| Landed at Mumbai Port | 686 | |
| MODVAT | 101 | |
| Total landed | 787 | 36386 |
| Net of MODVAT | 686 | 31711 |
INR to USD - 46.24
In INR per tonne
(Source: www.steelprices-india.com)
The confidence is based on solid foundation of an anticipated hike in price after Ramadan and European holidays when demand rears to replenish stocks. Moreover the domestic market is expected to resurrect post monsoon.
Moreover the Waterloo in last quarter took its toll on truncated capacity as many mills unable to withstand the hike in raw material prices viz iron ore coke etc without demand support shut down.
Major steel producers such as SAIL, TATA Steel, JSW Steel, Essar Steel and Ispat have already hiked prices for flat products. The recent hike bodes well for companies as it will help them offload some high cost inventory. Droplets of demand can be barely enough assuage the dreary market however it is a godsend opportunity for mills to opportunistically grab its pie before the flurry vanishes.
HRC
Tube
2.5x1250
| Location | Change |
| Ahmedabad | 3% |
| Bangalore | 1% |
| Chennai | 0% |
| Delhi | -1% |
| Indore | 0% |
| Kolkata | 0% |
| Ludhiana | -2% |
| Mumbai | 0% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
Patra
| Location | Change |
| Delhi | 1% |
| Ludhiana | 0% |
| Mandi | 1% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
Plates
Grade A
8X1250/1500
| Location | Change |
| Chennai | 0% |
| Delhi | -1% |
| Kanpur | 1% |
| Kolkata | 0% |
| Mumbai | 0% |
| Rudrapur | 1% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
Plates
GRADE B
12-20X2500
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 3% |
| Chennai | 0% |
| Delhi | -1% |
| Indore | 0% |
| Kanpur | 1% |
| Kolkata | 0% |
| Mumbai | -1% |
| Raipur | 0% |
| Rudrapur | 1% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
CR
DSK
0.63x1000
| Location | Change |
| Ahmedabad | 1% |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mumbai | 1% |
| Pune | 1% |
| Rudrapur | 1% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
GP
100Gms
0.4
| Location | Change |
| Mumbai | 2% |
| Chennai | 0% |
| Kolkata | 0% |
| Delhi | 0% |
| Ludhiana | 1% |
| Kanpur | 1% |
| Rudrapur | 0% |
| Bangalore | 0% |
Change is on Sep 10th 2010 as compared to Sep 3rd 2010
GC
100Gms
0.4
| Location | Change |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 1% |
| Kolkata | 0% |
| Mumbai | 2% |
| Ludhiana | 1% |
| Rudrapur | 0% |
Change is on Sep 10th 2010 as compared to Sep 3rd 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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