The mystery of pencil ingot prices deepened on Friday when it exhibited an uncanny resilience on day marred by hike in lending rate by RBI to rein inflation. Typically such a move is morale buster having a deflationary impact but a contrary move defies logic.
With a 25 basis point increase in repo rate and reverse repo rate market took it positively with signs of RBI hawkish ness ebbing in the coming days. As monsoon recedes and seasonal demand expected to unfold soon pencil ingot prices erred on the plus side.
Reading between the lines the RBI declaration had underpinnings of another round of interest hike before the culmination of Q3 as the inflation figure is nowhere near the targeted 6% to 6.5%.
Prudence and wisdom indicates caution rather than optimism. The only reprieve for long market in heavy infrastructural investment and growth seemingly out of vicinity the hike can be yet another round of speculative rumblings bound to perish with the same alacrity. Ever increasing cost of capital and the ensuing liquidity crunch one cannot help being optimistic. Finished steel TMT bars and structural remained unresponsive to the eccentricity of input market.
September was widely perceived to be turn point for flat products in India with the waning of monsoon and pick up in seasonal demand. Riding the crest on a premature enthusiasm most of the Indian steel mills hiked prices in the range of INR 500 per tonne to INR 1000 per tonne in September. The curtailed production owing to iron ore and gas shortage influenced the price hike by few mills but the temptation was primarily inspired by seasonality.
On one hand if it was the desperation of the mills to wriggle out of burgeoning cost escalation on the other hand depreciating rupee provided the mirage of market capitalization at home as imports became dearer losing sight of the market realities.
With auto sales plummeting MoM and borrowing cost escalating with RBI hiking interest rates 12 times in the last 18 months, the ramifications took a pandemic proportion engulfing consumer durables and construction sector as well.
It is learnt that the stock levels with the mills and buyers are low but need based buying is preferred to limit the risk.
Most of the mills have already retraced the wrong foot by giving rebates and quantity based discounts to the tune of INR 500 tonne to 1000 per tonne.
The Indian Long Product Price Index ILPPI surged by 26 points last week whereas Indian Flat Products Index IFPPI has gone down by 17 points. The overall price index INDSPI inclined by 5 points.
| Class | 09-Sep | 16-Sep | Change | % |
| ILPPI | 8380 | 8406 | 26 | 0.3% |
| IFPPI | 8649 | 8632 | -17 | -0.2% |
| INDSPI | 8508 | 8514 | 5 | 0.1% |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 09-Sep | 16-Sep | Change | % |
| PI - TMT | 8453 | 8510 | 57 | 0.7% |
| PI - WRC | 8577 | 8577 | 0 | 0.0% |
| PI - Angle | 8033 | 8048 | 15 | 0.2% |
| PI - Channel | 8110 | 8125 | 15 | 0.2% |
| PI - Joist | 7466 | 7480 | 14 | 0.2% |
PI - Product Index
Flat products
| Category | 09-Sep | 16-Sep | Change | % |
| PI - Narrow Plates | 8247 | 8240 | -6 | -0.1% |
| PI - Wide Plates | 8588 | 8576 | -12 | -0.1% |
| PI - Hot Rolled | 8333 | 8317 | -17 | -0.2% |
| PI - Cold Rolled | 9553 | 9533 | -20 | -0.2% |
| PI - Galvanized | 9277 | 9247 | -30 | -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 |
| Bangalore | 0% |
| Chennai | 0% |
| Hyderabad | 2% |
| Kandla | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | 0% |
| Mandi | 0% |
| Mumbai | 1% |
| Rudrapur | 0% |
Change is on Sep 16th as compared to 9th Sep 2011
Alang
| Product | Size | Change |
| Plate cuttings | 1" | 4% |
| Ships | Mixed | 2% |
Change is on Sep 16th as compared to 9th Sep 2011
Pencil ingot
| Location | Change |
| Ahmedabad | 0% |
| Alang | 0% |
| Bhiwari | 2% |
| Chennai | 0% |
| Durgapur | 1% |
| Ghaziabad | 3% |
| Hyderabad | 3% |
| Jaipur | 2% |
| Jamshedpur | 3% |
| Kanpur | 0% |
| Kolkata | 1% |
| Ludhiana | 1% |
| Mandi | 1% |
| Mumbai | 2% |
| Muzzafarnagar | 3% |
| Nagpur | 1% |
| Raigarh | 1% |
| Raipur | 1% |
| Rourkela | 1% |
| Rudrapur | 0% |
Change is on Sep 16th as compared to 9th Sep 2011
Pig Iron
| Location | Change |
| Agra | 1% |
| Jallandhar | 1% |
| Kolkata | 1% |
| Ludhiana | 1% |
| Raipur | 1% |
Change is on Sep 16th as compared to 9th Sep 2011
Sponge iron
| Location | Change |
| Bellary | 1% |
| Kolkata | 1% |
| Ludhiana | 1% |
| Raigarh | 1% |
| Raipur | 1% |
| Rourkela | 3% |
Change is on Sep 16th as compared to 9th Sep 2011
2. Long products
Rebar (TMT QST)
Fe 415
12mm
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 3% |
| Indore | 1% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | 0% |
| Mandi | 1% |
| Mumbai | 1% |
| Muzzafarnagar | 0% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on Sep 16th as compared to 9th Sep 2011
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on Sep 16th as compared to 9th Sep 2011
ANGL
Grade A
65X65X6
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | -1% |
| Mandi | 1% |
| Mumbai | 1% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on Sep 16th as compared to 9th Sep 2011
CHNL
Grade A
75/40
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | 0% |
| Mandi | 1% |
| Mumbai | 1% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on Sep 16th as compared to 9th Sep 2011
JSTI
Grade A
250X125
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | 0% |
| Mandi | 1% |
| Mumbai | 1% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on Sep 16th as compared to 9th Sep 2011
3. Flat products
HRC
Tube
2.5x1250
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | 0% |
| Chennai | -1% |
| Delhi | -1% |
| Indore | 0% |
| Kolkata | 0% |
| Ludhiana | 0% |
| Mumbai | -1% |
Change is on Sep 16th as compared to 9th Sep 2011
Patra
| Location | Change |
| Delhi | 0% |
| Ludhiana | -1% |
| Mandi | 0% |
Change is on Sep 16th as compared to 9th Sep 2011
Plates
Grade A
8X1250/1500
| Location | Change |
| Chennai | 0% |
| Delhi | -1% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mumbai | -1% |
| Rudrapur | 0% |
Change is on Sep 16th as compared to 9th Sep 2011
Plates
GRADE B
12-20X2500
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | -1% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mumbai | -1% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on Sep 16th as compared to 9th Sep 2011
CR
DSK
0.63x1000
| Location | Change |
| Ahmedabad | 0% |
| Chennai | 1% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | -1% |
| Mumbai | -1% |
| Pune | -1% |
| Rudrapur | 0% |
Change is on Sep 16th as compared to 9th Sep 2011
GP
100Gms
0.4
| Location | Change |
| Mumbai | 0% |
| Chennai | 1% |
| Kolkata | -1% |
| Delhi | 0% |
| Ludhiana | 0% |
| Kanpur | 0% |
| Rudrapur | 0% |
| Bangalore | 0% |
Change is on Sep 16th as compared to 9th Sep 2011
GC
100Gms
0.4
| Location | Change |
| Bangalore | 0% |
| Chennai | 1% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | -1% |
| Mumbai | 0% |
| Ludhiana | -1% |
| Rudrapur | 0% |
Change is on Sep 16th as compared to 9th Sep 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
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.
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