After the month long blitzkrieg, it was the turn of correction to take place. It has been noticed that the prices of pencil ingot has been relentless on a correction course owing to the following reasons.
Ameliorated supply of ingots as the furnaces went full stream propelled by demand from steel rerollers and ample availability of power. Moreover the suppliers resorted to offloading at lower margins even than making money in this bloated market. Moreover the receding scrap prices have taken the cost pressure off.
However it is expected that this correction would ebb within a week’s time once the rebar prices picks up after the anticipated price revision in February. Market players opine the prices will be on traction during February in the halo of cost push, shortage and demand, basically speculations. It is expected that most of the mills will increase the prices by another INR 3000 per tonne to INR 4000 per tonne almost bringing TMT levels at par with the pre crisis levels.
On the other hand, flat product producers in India have ample scope to hike prices by up to INR 4000 per tonne. Assuming that HRC import offers are available at USD 770 per tonne CFR basis, the import parity price is at INR 37,500 per tonne net of MODVAT giving a clear cut gap of almost INR 2000 per tonne with respect to market prices. But if we add import hassle factor, the gap increases to almost INR 4,000 per tonne. Moreover, it is likely that global levels for flat products will surge further in coming days giving more room to Indian steel makers for hiking domestic prices.
But the catch is that with inflation making headlines, Indian steel majors are likely to go for hike in steps to avoid interference from the government.
It is for sure that we should be seeing major hikes for both longs and flats from Indian steel majors.
The Indian Long Product Price Index ILPPI continued in upward trends with 5 points last week whereas Indian Flat Products Index IFPPI also up by 46 points. The overall price index INDSPI inclined by 24 points.
| Class | 21-Jan | 28-Jan | Change | % |
| ILPPI | 8054 | 8059 | 5 | 0.1% |
| IFPPI | 8505 | 8551 | 46 | 0.5% |
| INDSPI | 8269 | 8293 | 24 | 0.3% |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 21-Jan | 28-Jan | Change | % |
| PI - TMT | 8060 | 8071 | 11 | 0.1% |
| PI - WRC | 8242 | 8242 | 0 | 0.0% |
| PI - Angle | 7792 | 7815 | 23 | 0.3% |
| PI - Channel | 7863 | 7862 | -1 | 0.0% |
| PI - Joist | 7405 | 7399 | -6 | -0.1% |
PI - Product Index
Flat products
| Category | 21-Jan | 28-Jan | Change | % |
| PI - Narrow Plates | 8005 | 8060 | 55 | 0.7% |
| PI - Wide Plates | 8228 | 8305 | 77 | 0.9% |
| PI - Hot Rolled | 8277 | 8318 | 41 | 0.5% |
| PI - Cold Rolled | 9380 | 9415 | 35 | 0.4% |
| PI - Galvanized | 9044 | 9088 | 44 | 0.5% |
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 | 6% |
| Hyderabad | 0% |
| Kandla | 1% |
| Kanpur | -1% |
| Kolkata | -2% |
| Mandi | -2% |
| Mumbai | -2% |
| Rudrapur | -1% |
Change is on Jan 28th as compared to 21st Jan 2011
Alang
| Product | Size | Change |
| Plate cuttings | 1" | -1% |
| Ships | Mixed | 0% |
Change is on Jan 28th as compared to 21st Jan 2011
Pencil ingot
| Location | Change |
| Ahmedabad | 2% |
| Alang | 0% |
| Bhiwari | -4% |
| Chennai | 0% |
| Durgapur | -3% |
| Ghaziabad | -4% |
| Hyderabad | 0% |
| Jaipur | -3% |
| Jamshedpur | -2% |
| Kanpur | 0% |
| Kolkata | -2% |
| Mandi | -3% |
| Mumbai | -2% |
| Muzzafarnagar | -4% |
| Nagpur | 0% |
| Raigarh | -3% |
| Raipur | -3% |
| Rourkela | -3% |
| Rudrapur | 0% |
Change is on Jan 28th as compared to 21st Jan 2011
Pig Iron
| Location | Change |
| Agra | 2% |
| Jallandhar | 1% |
| Kolkata | 2% |
| Raipur | 2% |
Change is on Jan 28th as compared to 21st Jan 2011
Sponge iron
| Location | Change |
| Bellary | -3% |
| Kolkata | -7% |
| Raigarh | -3% |
| Raipur | -2% |
| Rourkela | -3% |
Change is on Jan 28th as compared to 21st Jan 2011
2. Long products
Rebar (TMT QST)
Fe 415
12mm
| Location | Change |
| Ahmedabad | 3% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mandi | -1% |
| Mumbai | -1% |
| Muzzafarnagar | 0% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on Jan 28th as compared to 21st Jan 2011
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | 0% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on Jan 28th as compared to 21st Jan 2011
ANGL
Grade A
65X65X6
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | -1% |
| Chennai | 3% |
| Delhi | 0% |
| Indore | -1% |
| Kanpur | 0% |
| Kolkata | -1% |
| Mandi | -1% |
| Mumbai | 2% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on Jan 28th as compared to 21st Jan 2011
CHNL
Grade A
75/40
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | -2% |
| Chennai | 1% |
| Delhi | 0% |
| Indore | -1% |
| Kanpur | 0% |
| Kolkata | -1% |
| Mandi | -1% |
| Mumbai | 2% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on Jan 28th as compared to 21st Jan 2011
JSTI
Grade A
250X125
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | 1% |
| Chennai | 0% |
| Delhi | 0% |
| Indore | 0% |
| Kanpur | 0% |
| Kolkata | -1% |
| Mandi | -1% |
| Mumbai | 1% |
| Raipur | 0% |
| Rudrapur | 0% |
Change is on Jan 28th as compared to 21st Jan 2011
3. Flat products
HRC
Tube
2.5x1250
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | 3% |
| Chennai | 2% |
| Delhi | 0% |
| Indore | 1% |
| Kolkata | -1% |
| Ludhiana | 3% |
| Mumbai | 1% |
Change is on Jan 28th as compared to 21st Jan 2011
Patra
| Location | Change |
| Delhi | 0% |
| Ludhiana | 1% |
| Mandi | -1% |
Change is on Jan 28th as compared to 21st Jan 2011
Plates
Grade A
8X1250/1500
| Location | Change |
| Chennai | 0% |
| Delhi | 0% |
| Kanpur | 1% |
| Kolkata | -1% |
| Mumbai | 1% |
| Rudrapur | 1% |
Change is on Jan 28th as compared to 21st Jan 2011
Plates
GRADE B
12-20X2500
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | 2% |
| Chennai | 2% |
| Delhi | 0% |
| Indore | 2% |
| Kanpur | 1% |
| Kolkata | -1% |
| Mumbai | 1% |
| Raipur | 0% |
| Rudrapur | 1% |
Change is on Jan 28th as compared to 21st Jan 2011
CR
DSK
0.63x1000
| Location | Change |
| Ahmedabad | 1% |
| Chennai | 1% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | -1% |
| Mumbai | 1% |
| Pune | 1% |
| Rudrapur | 0% |
Change is on Jan 28th as compared to 21st Jan 2011
GP
100Gms
0.4
| Location | Change |
| Mumbai | 0% |
| Chennai | 1% |
| Kolkata | 1% |
| Delhi | 0% |
| Ludhiana | 1% |
| Kanpur | 0% |
| Rudrapur | 0% |
| Bangalore | 2% |
Change is on Jan 28th as compared to 21st Jan 2011
GC
100Gms
0.4
| Location | Change |
| Bangalore | 2% |
| Chennai | 1% |
| Delhi | 0% |
| Kanpur | 0% |
| Kolkata | 1% |
| Mumbai | 0% |
| Ludhiana | 2% |
| Rudrapur | 0% |
Change is on Jan 28th as compared to 21st Jan 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
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
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
| Currency | Single | 2-5 | 6-12 | 13-25 | 26-40 | 40-60 |
| INR | 66,000 | 132,000 | 220,000 | 440,000 | 660,000 | 880,000 |
| USD | 1,650 | 3,300 | 5,500 | 11,000 | 16,500 | 22,000 |
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