Indian domestic steel market for flat products has witnessed one of the most volatile period ever with prices climbing by more than 5% in a matter of just 7 days.
The hike announced by Indian steel majors ignited the fire and the market prices went in a spiral to match the hikes. The market over reacted to the adrenalin propagated by shortage and rampant speculative buying by traders, stockiest as well as end user. Insinuations about a mid month hike have taken the sentiments to feverish levels.
Although, surge in coking coal and iron ore is being cited as the driver for price increase, imbalance in import parity gave room to steel mills to go for kill. Indian steel majors have announced hikes for shipments in February. The quantum of hikes by different steel makers is different as some of them had increased prices several times in January 2011. The hike is also different for HR, CR and HDG. Following numbers have been heard, although the ball park number for HRC is reported to be INR 39,000 per tonne (About USD 860 per tonne) plus ED and VAT.
1. INR 2500 per tonne to INR 3000 per tonne
2. INR 2500 per tonne to INR 4000 per tonne
3. INR 3000 per tonne to INR 5000 per tonne
This is in line with our view on January 31st 2011 “Major hike in offing” where in we had reported that “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.”
As the quantum of hike ate various locations differs and it is likely that we should be seeing further hikes by next week at locations lagging behind.
Furthermore, the market sentiments are quite buoyant and possibility of further hike by Indian steel majors remains, there is a good chance that market price may further go up.
On the other hand, much on the anticipated lines the TMT prices were hiked by the primary manufacturers in the range of INR 2000 per tonne to INR 3000 per tonne. This move is borne out of an overwhelming demand from the project culminating in forward booking for the next couple of months.
The secondary manufacturers on the other hand have opted for caution and gone in a huddle and corrections at some locations are seen. The retail is plagued with acute shortage of material which can be assuaged only by the secondary manufacturers who are yet to open their cards.
Although the demand of rebars from secondary producers in the retail is slow, some mill owners have mentioned that we should be witnessing hike of more than INR 2000 per tonne to INR 3000 per tonne in coming days. They have cited high prices of sponge and pencil ingot as the likely trigger of a hike coupled with anticipated surge in demand in the remaining period of current financial.
The Indian Long Product Price Index ILPPI continued in upward trends last week with 30 points gain whereas Indian Flat Products Index IFPPI surged by whooping 436 points. The overall price index INDSPI inclined by 223 points.
| Class | 28-Jan | 04-Feb | Change | % |
| ILPPI | 8059 | 8089 | 30 | 0.4% |
| IFPPI | 8551 | 8987 | 436 | 5.1% |
| INDSPI | 8293 | 8517 | 223 | 2.7% |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 28-Jan | 04-Feb | Change | % |
| PI - TMT | 8071 | 7975 | -96 | -1.2% |
| PI - WRC | 8242 | 8369 | 127 | 1.5% |
| PI - Angle | 7815 | 7918 | 103 | 1.3% |
| PI - Channel | 7862 | 7960 | 98 | 1.2% |
| PI - Joist | 7399 | 7454 | 56 | 0.8% |
PI - Product Index
Flat products
| Category | 28-Jan | 04-Feb | Change | % |
| PI - Narrow Plates | 8060 | 8380 | 320 | 4.0% |
| PI - Wide Plates | 8305 | 8655 | 350 | 4.2% |
| PI - Hot Rolled | 8318 | 8771 | 452 | 5.4% |
| PI - Cold Rolled | 9415 | 9852 | 438 | 4.6% |
| PI - Galvanized | 9088 | 9667 | 579 | 6.4% |
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 | 7% |
| Kandla | 1% |
| Kanpur | -3% |
| Kolkata | 2% |
| Mandi | 2% |
| Mumbai | 1% |
| Rudrapur | -3% |
Change is on Feb 4th as compared to 28th Jan 2011
Alang
| Product | Size | Change |
| Plate cuttings | 1" | 1% |
| Ships | Mixed | 0% |
Change is on Feb 4th as compared to 28th Jan 2011
Pencil ingot
| Location | Change |
| Ahmedabad | -1% |
| Alang | 1% |
| Bhiwari | 2% |
| Chennai | 0% |
| Durgapur | 1% |
| Ghaziabad | 2% |
| Hyderabad | 0% |
| Jaipur | 2% |
| Jamshedpur | -1% |
| Kanpur | -4% |
| Kolkata | 1% |
| Mandi | 1% |
| Mumbai | 2% |
| Muzzafarnagar | 1% |
| Nagpur | -1% |
| Raigarh | 1% |
| Raipur | 1% |
| Rourkela | 0% |
| Rudrapur | -5% |
Change is on Feb 4th as compared to 28th Jan 2011
Pig Iron
| Location | Change |
| Agra | -2% |
| Jallandhar | -2% |
| Kolkata | -2% |
| Raipur | -2% |
Change is on Feb 4th as compared to 28th Jan 2011
Sponge iron
| Location | Change |
| Bellary | 3% |
| Kolkata | -1% |
| Raigarh | 0% |
| Raipur | 0% |
| Rourkela | 0% |
Change is on Feb 4th as compared to 28th Jan 2011
2. Long products
Rebar (TMT QST)
Fe 415
12mm
| Location | Change |
| Ahmedabad | 2% |
| Bangalore | 1% |
| Chennai | -5% |
| Delhi | -2% |
| Indore | 0% |
| Kanpur | -2% |
| Kolkata | -3% |
| Mandi | 3% |
| Mumbai | 2% |
| Muzzafarnagar | -3% |
| Raipur | 1% |
| Rudrapur | -3% |
Change is on Feb 4th as compared to 28th Jan 2011
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | 0% |
| Delhi | 5% |
| Kanpur | -2% |
| Kolkata | 4% |
| Raipur | 1% |
| Rudrapur | -2% |
Change is on Feb 4th as compared to 28th Jan 2011
ANGL
Grade A
65X65X6
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | 2% |
| Chennai | 0% |
| Delhi | 5% |
| Indore | 0% |
| Kanpur | -2% |
| Kolkata | 3% |
| Mandi | -1% |
| Mumbai | 2% |
| Raipur | 1% |
| Rudrapur | -2% |
Change is on Feb 4th as compared to 28th Jan 2011
CHNL
Grade A
75/40
| Location | Change |
| Ahmedabad | 1% |
| Bangalore | 2% |
| Chennai | -1% |
| Delhi | 5% |
| Indore | 0% |
| Kanpur | -2% |
| Kolkata | 3% |
| Mandi | -1% |
| Mumbai | 2% |
| Raipur | 1% |
| Rudrapur | -3% |
Change is on Feb 4th as compared to 28th Jan 2011
JSTI
Grade A
250X125
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | -1% |
| Delhi | 5% |
| Indore | 0% |
| Kanpur | -1% |
| Kolkata | 2% |
| Mandi | -1% |
| Mumbai | 2% |
| Raipur | 1% |
| Rudrapur | -1% |
Change is on Feb 4th as compared to 28th Jan 2011
3. Flat products
HRC
Tube
2.5x1250
| Location | Change |
| Ahmedabad | 6% |
| Bangalore | 5% |
| Chennai | 0% |
| Delhi | 7% |
| Indore | 7% |
| Kolkata | 6% |
| Ludhiana | 3% |
| Mumbai | 4% |
Change is on Feb 4th as compared to 28th Jan 2011
Patra
| Location | Change |
| Delhi | 5% |
| Ludhiana | -1% |
| Mandi | -1% |
Change is on Feb 4th as compared to 28th Jan 2011
Plates
Grade A
8X1250/1500
| Location | Change |
| Chennai | -1% |
| Delhi | 7% |
| Kanpur | 3% |
| Kolkata | 5% |
| Mumbai | 2% |
| Rudrapur | 3% |
Change is on Feb 4th as compared to 28th Jan 2011
Plates
GRADE B
12-20X2500
| Location | Change |
| Ahmedabad | 7% |
| Bangalore | 6% |
| Chennai | -1% |
| Delhi | 7% |
| Indore | 1% |
| Kanpur | 2% |
| Kolkata | 4% |
| Mumbai | 6% |
| Raipur | 6% |
| Rudrapur | 2% |
Change is on Feb 4th as compared to 28th Jan 2011
CR
DSK
0.63x1000
| Location | Change |
| Ahmedabad | 6% |
| Chennai | 0% |
| Delhi | 6% |
| Kanpur | 4% |
| Kolkata | 7% |
| Mumbai | 5% |
| Pune | 5% |
| Rudrapur | 4% |
Change is on Feb 4th as compared to 28th Jan 2011
GP
100Gms
0.4
| Location | Change |
| Mumbai | 10% |
| Chennai | 0% |
| Kolkata | 5% |
| Delhi | 8% |
| Ludhiana | 4% |
| Kanpur | 5% |
| Rudrapur | 5% |
| Bangalore | 4% |
Change is on Feb 4th as compared to 28th Jan 2011
GC
100Gms
0.4
| Location | Change |
| Bangalore | 4% |
| Chennai | 0% |
| Delhi | 8% |
| Kanpur | 5% |
| Kolkata | 3% |
| Mumbai | 7% |
| Ludhiana | 5% |
| Rudrapur | 5% |
Change is on Feb 4th as compared to 28th 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
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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