Stage is set for melodramatic Q3 in the long steel market in India after nearly a year long hiatus. Ever since the government got in overdrive over policy initiatives to salvage the economy from the brink of debacle aspirations have been rising about its impact on the steel market.
If FDI in retail is certainly going to give adrenalin shot to the reality sector as the MNCs and domestic multi brand players make the rush for expansion of outlets across the country. Estimated 18 months gestation for retail outlet to commence operations will certainly swing construction activities into action.
Slew of clearance in infrastructural projects with abundant decisions in the pipeline will stir the demand for steel, cement etc in Q3 & Q4.
Long products being the prime ingredient in construction activity are certain to have improved demand in the coming days.
Both secondary and primary manufacturers have been languishing over the last 2 quarters awaiting catalyst from government. Even though the primary manufacturers have been able to maintain their bottom lines with residual project demand the plight of secondary sector has been miserable.
Increasing power tariff and shortage of iron ore coupled with high scrap levels peppered by weakening INR losing nearly 20% since March did much to cost escalation and margin squeeze in the secondary sector.
As the economy heaves a sigh of relief with slew of economic reforms giving jerk to the sagging credit worthiness of the nation there is certainly flip side to it. If a soaring rupee is providing fillip to the widening fiscal deficit by being boon for the importers it can be bane for the domestic manufacturers.
Indian steel industry is unlikely to feast in such an eventuality since the domestic mills have been struggling for the past 18 months maintain operational levels. Despite the tom toming of YoY 6.9% growth in consumption and about 4.2% growth in steel production the industry is not gullible to it.
An industry saddled with raw material shortage has been gasping for its existence during this period barely able to notch up even 2/3rd for its capacity. However during the INR dilution exports provided an outlet for flat producers to divert surplus inventory. In run-up Indian mills could take on the 2 tier Chinese mills in Europe and Middle East.
The Indian Long Product Price Index ILPPI has gone up by 7 points last week whereas Indian Flat Products Index IFPPI has also gone up by 5 points. The overall price index INDSPI inclined by 7 points.
| Class | 28-Sep | 05-Oct | Change | % |
| ILPPI | 9036 | 9043 | 7 | 0.1% |
| IFPPI | 8804 | 8809 | 5 | 0.1% |
| INDSPI | 8925 | 8932 | 7 | 0.1% |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 28-Sep | 05-Oct | Change | % |
| PI - TMT | 9234 | 9252 | 18 | 0.2% |
| PI - WRC | 9185 | 9193 | 8 | 0.1% |
| PI - Angle | 8541 | 8534 | -7 | -0.1% |
| PI - Channel | 8641 | 8628 | -13 | -0.2% |
| PI - Joist | 7945 | 7922 | -23 | -0.3% |
PI - Product Index
Flat products
| Category | 28-Sep | 05-Oct | Change | % |
| PI - Narrow Plates | 8363 | 8360 | -3 | 0.0% |
| PI - Wide Plates | 8677 | 8698 | 21 | 0.2% |
| PI - Hot Rolled | 8580 | 8581 | 1 | 0.0% |
| PI - Cold Rolled | 9526 | 9544 | 18 | 0.2% |
| PI - Galvanized | 9380 | 9367 | -13 | -0.1% |
PI - Product Index
These indices have base of 10,000 as on July 1st 2008
To know more about these indices please visit
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1. Input material
Melting scrap
80:20
HMS
| Location | Change |
| Bangalore | 0% |
| Chennai | 0% |
| Hyderabad | 0% |
| Kandla | -1% |
| Kanpur | 0% |
| Kolkata | 1% |
| Ludhiana | -2% |
| Mandi | 0% |
| Mumbai | 0% |
| Rudrapur | 0% |
Change is on 5th October as compared to 28th September 2012
Change is per tonne
Alang
| Product | Size | Change |
| Plate cuttings | 1" | -1.1% |
| Ships | Mixed | -2.1% |
Change is on 5th October as compared to 28th September 2012
Pencil ingot
| Location | Change |
| Ahmedabad | -1% |
| Alang | 0% |
| Bhiwari | 0% |
| Chennai | 0% |
| Durgapur | 1% |
| Ghaziabad | 1% |
| Hyderabad | 2% |
| Jaipur | 0% |
| Jamshedpur | 0% |
| Kanpur | 1% |
| Kolkata | 1% |
| Ludhiana | -1% |
| Mandi | 0% |
| Mumbai | 0% |
| Muzaffarnagar | 0% |
| Nagpur | 0% |
| Raigarh | 0% |
| Raipur | 0% |
| Rourkela | 0% |
| Rudrapur | 1% |
Change is on 5th October as compared to 28th September 2012
Change is per tonne
Pig Iron
| Location | Change |
| Agra | 0% |
| Jallandhar | 0% |
| Kolkata | 0% |
| Ludhiana | 0% |
| Raipur | 0% |
Change is on 5th October as compared to 28th September 2012
Change is per tonne
Sponge iron
| Location | Change |
| Bellary | 5% |
| Kolkata | 0% |
| Ludhiana | 2% |
| Raigarh | 1% |
| Raipur | 0% |
| Rourkela | 0% |
Change is on 5th October as compared to 28th September 2012
Change is per tonne
2. Long products
Rebar (TMT QST)
Fe 415
12mm
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | -2% |
| Chennai | 0% |
| Delhi | 2% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 1% |
| Ludhiana | 1% |
| Mandi | 1% |
| Mumbai | 0% |
| Muzaffarnagar | 0% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on 5th October as compared to 28th September 2012
Change is per tonne
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | -1% |
| Kolkata | 1% |
| Raipur | 0% |
| Rudrapur | -1% |
Change is on 5th October as compared to 28th September 2012
Change is per tonne
ANGL
Grade A
65x65x6
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | -1% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 1% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | 1% |
| Mandi | 1% |
| Mumbai | 0% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on 5th October as compared to 28th September 2012
Change is per tonne
CHNL
Grade A
75/40
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | -2% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 1% |
| Kanpur | 0% |
| Kolkata | 1% |
| Ludhiana | 2% |
| Mandi | 0% |
| Mumbai | 0% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on 5th October as compared to 28th September 2012
Change is per tonne
JSTI
Grade A
250x125
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | -2% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Ludhiana | 3% |
| Mandi | 0% |
| Mumbai | 0% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on 5th October as compared to 28th September 2012
Change is per tonne
3. Flat products
HRC
Tube
2.5x1250
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 0% |
| Kolkata | 1% |
| Ludhiana | 1% |
| Mumbai | 0% |
Change is on 5th October as compared to 28th September 2012
Change is per tonne
Patra
| Location | Change |
| Delhi | 0% |
| Ludhiana | 1% |
| Mandi | 1% |
Change is on 5th October as compared to 28th September 2012
Change is per tonne
Plates
Grade A
8x1250/1500
| Location | Change |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | 1% |
| Mumbai | 0% |
| Rudrapur | 0% |
Change is on 5th October as compared to 28th September 2012
Change is per tonne
Plates
GRADE B
12-20x2500
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | -1% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 1% |
| Mumbai | 0% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on 5th October as compared to 28th September 2012
Change is per tonne
CR
DSK
0.63x1000
| Location | Change |
| Ahmedabad | 0% |
| Chennai | 0% |
| Delhi | -1% |
| Kanpur | 0% |
| Kolkata | 1% |
| Ludhiana | 0% |
| Mumbai | 0% |
| Pune | 0% |
| Rudrapur | 0% |
Change is on 5th October as compared to 28th September 2012
Change is per tonne
GP
100Gms
0.4
| Location | Change |
| Mumbai | 0% |
| Chennai | 0% |
| Kolkata | 0% |
| Delhi | -1% |
| Ludhiana | 0% |
| Kanpur | 0% |
| Rudrapur | 0% |
| Bangalore | 0% |
Change is on 5th October as compared to 28th September 2012
Change is per tonne
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 5th October as compared to 28th September 2012
Change is per tonne
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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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