The market for both long and flat products in India continued in depressed mode last week amid sluggish demand and bearish sentiments clouding the opening week of November.
The Indian long product market remained devoid of demand with every producer fighting for survival reflecting gory story of sinking prices, shrinking margins, soaring costs etc despite demand for major projects remaining rock steady. Marker players touted following factors for such situation.
1. Huge overcapacity
2. Labour shortage during the festival season
3. Lack of liquidity as traders square off the books of accounts
4. Abundant supply from primary mills
5. Dealers clearing off stocks apprehensive of prolonged masquerade after festivals
On the other hand, he flat product market in India has been the proverbial Achilles heel recently. The international prices saw variations in the concurrent period bulking by USD 30 per tonne to INR 50 per tonne. Indian mills who were reactive by increasing prices in October on the back of a reverberating global market on the verge of peaking have failed to capitalize the parity advantage over the last 1 month. In a rear guard move some mills have made mid term correction of INR 800 per tonne to preempt the damage. But market is characterized by surplus finished product and stockiest inventory scuttling the buying activity.
Moreover, the windfall appreciation in INR by about 6% within last couple of months has left an indelible mark on the flat product market. Import levels already receding since end September as Europe, Middle East and China remained subdued latched onto rupee appreciation giving it a cutting and killing edge over the domestic levels.
These sentiments were aptly reflected by our indices last week. The Indian Long Product Price Index ILPPI continued in downward trends last week with 62 points fall whereas Indian Flat Products Index IFPPI also dropped by 48 points. The overall price index INDSPI declined by 56 points.
| Class | 22-Oct | 29-Oct | Change | % |
| ILPPI | 7051 | 6988 | -62 | -0.9% |
| IFPPI | 7851 | 7803 | -48 | -0.6% |
| INDSPI | 7432 | 7376 | -56 | -0.7% |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 22-Oct | 29-Oct | Change | % |
| PI - TMT | 6971 | 6884 | -87 | -1.3% |
| PI - WRC | 7370 | 7329 | -41 | -0.6% |
| PI - Angle | 6744 | 6685 | -58 | -0.9% |
| PI - Channel | 6742 | 6683 | -60 | -0.9% |
| PI - Joist | 6302 | 6258 | -44 | -0.7% |
PI - Product Index
Flat products
| Category | 22-Oct | 29-Oct | Change | % |
| PI - Narrow Plates | 7341 | 7304 | -37 | -0.5% |
| PI - Wide Plates | 7742 | 7698 | -43 | -0.6% |
| PI - Hot Rolled | 7553 | 7492 | -62 | -0.8% |
| PI - Cold Rolled | 8801 | 8768 | -33 | -0.4% |
| PI - Galvanized | 8466 | 8446 | -20 | -0.2% |
PI - Product Index
These indices have base of 10,000 as on July 1st 2008
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It is expected that the long product market will overcome the proverbial last impediment with the culmination of Chaath festival on 12th November and regain normalcy around mid November. On the flip side skeptics are not ruling out a damp squib either.
It is anticipated that flat producers will either reduce the prices in equal measure or at least roll over, faced with a Hobson’s choice. The reduction could be in the range of INR 500 per tonne to INR 1500 per tonne as domestic off take fell short of their expectations in October.
1. Input material
Melting scrap
80:20
HMS
| Location | Change |
| Chennai | -2% |
| Hyderabad | -3% |
| Kandla | 3% |
| Kanpur | -1% |
| Kolkata | -2% |
| Mandi | 0% |
| Mumbai | 0% |
| Rudrapur | -1% |
Change is on Oct 29th 2010 as compared to Oct 22nd 2010
Alang
| Product | Size | Change |
| Plate cuttings | 1" | -4% |
| Ships | Mixed | -4% |
Change is on Oct 29th 2010 as compared to Oct 22nd 2010
Pencil ingot
| Location | Change |
| Ahmedabad | -3% |
| Alang | -4% |
| Bhiwari | -3% |
| Chennai | -2% |
| Durgapur | -1% |
| Ghaziabad | -2% |
| Hyderabad | 0% |
| Jaipur | -2% |
| Jamshedpur | -2% |
| Kanpur | -2% |
| Kolkata | -1% |
| Mandi | -1% |
| Mumbai | -3% |
| Muzzafarnagar | -1% |
| Nagpur | -2% |
| Raigarh | -3% |
| Raipur | -4% |
| Rourkela | -2% |
| Rudrapur | -2% |
Change is on Oct 29th 2010 as compared to Oct 22nd 2010
Pig Iron
| Location | Change |
| Agra | -1% |
| Jallandhar | -1% |
| Kolkata | 0% |
| Raipur | -1% |
Change is on Oct 29th 2010 as compared to Oct 22nd 2010
Sponge iron
| Location | Change |
| Bellary | -4% |
| Kolkata | -1% |
| Raigarh | -7% |
| Raipur | -4% |
| Rourkela | -6% |
Change is on Oct 29th 2010 as compared to Oct 22nd 2010
2. Long products
Rebar (TMT QST)
Fe 415
12mm
| Location | Change |
| Ahmedabad | -1% |
| Bangalore | -2% |
| Chennai | -2% |
| Delhi | -2% |
| Indore | -2% |
| Kanpur | -2% |
| Kolkata | 0% |
| Mandi | 0% |
| Mumbai | -2% |
| Muzzafarnagar | -1% |
| Raipur | -1% |
| Rudrapur | -1% |
Change is on Oct 29th 2010 as compared to Oct 22nd 2010
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | -1% |
| Delhi | 0% |
| Kanpur | -2% |
| Kolkata | 0% |
| Raipur | -1% |
| Rudrapur | -1% |
Change is on Oct 29th 2010 as compared to Oct 22nd 2010
ANGL
Grade A
65X65X6
| Location | Change |
| Ahmedabad | -1% |
| Bangalore | -2% |
| Chennai | -2% |
| Delhi | 0% |
| Indore | -3% |
| Kanpur | -1% |
| Kolkata | 0% |
| Mandi | 0% |
| Mumbai | -2% |
| Raipur | -1% |
| Rudrapur | 0% |
Change is on Oct 29th 2010 as compared to Oct 22nd 2010
CHNL
Grade A
75/40
| Location | Change |
| Ahmedabad | -1% |
| Bangalore | -2% |
| Chennai | -2% |
| Delhi | 0% |
| Indore | -3% |
| Kanpur | -1% |
| Kolkata | 0% |
| Mandi | 0% |
| Mumbai | -2% |
| Raipur | -1% |
| Rudrapur | -1% |
Change is on Oct 29th 2010 as compared to Oct 22nd 2010
JSTI
Grade A
250X125
| Location | Change |
| Ahmedabad | -1% |
| Bangalore | 0% |
| Chennai | -2% |
| Delhi | 0% |
| Indore | -1% |
| Kanpur | -3% |
| Kolkata | 0% |
| Mandi | 0% |
| Mumbai | -2% |
| Raipur | -2% |
| Rudrapur | -1% |
Change is on Oct 29th 2010 as compared to Oct 22nd 2010
3. Flat products
HRC
Tube
2.5x1250
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | -2% |
| Indore | 0% |
| Kolkata | 0% |
| Ludhiana | 0% |
| Mumbai | -1% |
Change is on Oct 29th 2010 as compared to Oct 22nd 2010
Patra
| Location | Change |
| Delhi | -1% |
| Ludhiana | 1% |
| Mandi | 0% |
Change is on Oct 29th 2010 as compared to Oct 22nd 2010
Plates
Grade A
8X1250/1500
| Location | Change |
| Chennai | -1% |
| Delhi | -1% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mumbai | -1% |
| Rudrapur | 0% |
Change is on Oct 29th 2010 as compared to Oct 22nd 2010
Plates
GRADE B
12-20X2500
| Location | Change |
| Ahmedabad | -1% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | -1% |
| Indore | 0% |
| Kanpur | -1% |
| Kolkata | 0% |
| Mumbai | -1% |
| Raipur | -1% |
| Rudrapur | 0% |
Change is on Oct 29th 2010 as compared to Oct 22nd 2010
CR
DSK
0.63x1000
| Location | Change |
| Ahmedabad | 0% |
| Chennai | 0% |
| Delhi | -1% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mumbai | -1% |
| Pune | 0% |
| Rudrapur | 0% |
Change is on Oct 29th 2010 as compared to Oct 22nd 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 Oct 29th 2010 as compared to Oct 22nd 2010
GC
100Gms
0.4
| Location | Change |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mumbai | 0% |
| Ludhiana | 1% |
| Rudrapur | 0% |
Change is on Oct 29th 2010 as compared to Oct 22nd 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.
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