The long product market in India was drenched in down pour last week as the ground realities of overtook the momentary positivism with the prices of input and finished taking a plunge.
The paradoxical situation is plummeting secondary and retail prices whereas firm primary suppliers prices rise with impunity. The secondary rolling sector continues to suffer lack of liquidity leading to delayed payments, off loading stocks by traders & stockiest in bid to collect cash in the closing months of the financial year, stocks being liquidated in a bid to minimize loss before the price slides further and lastly lack of demand in retail segment.
The primary manufacturers having decked their order books with project requirements has no material to supply hence they are quite oblivious to the happenings in retail. However the secondary producers are bearing the brunt of a sluggish market being coerced to reduce the prices. The gap between secondary and primary material having reached an astronomical INR 6000 per tonne to INR 7000 per tonne has to correct another INR 2000 per tonne to INR 3000 per tonne to regain normalcy or else the buyers will switch over to secondary for sourcing.
The price levels of primary manufacturers are notional owing to unavailability of material. However it is expected that blissful state won’t last long. Moreover with enhancement in default on monthly commitments the stocks would increase in their stockyard leading to the edifice crumbling under its own weight.
The reaction of the buyers of finished products in the retail will be critical for the sustenance of the bottoming out. Frenetic liquidation of stocks during the last 10 days mayhem might just have created need for stock replenishment.
On the other hand, slide in market prices of flat products last week clearly reflects that buyers are resisting the major hike in prices by steel majors and are limiting their purchases feeling that the peak has been reached.
In other words, sentiments propelling the flat product market are vanishing.
But the reality is that the surge by USD 50 per tonne to USD 70 per tonne in global export prices for flat products this month, both at China and Black Sea, is giving more room to Indian steel majors to go for another major hike.
It is learn that Ukrainian and Russian mills have been attempting levels of USD 820 per tonne to USD 850 per tonne CNF Mumbai bringing a lopsided parity of nearly INR 3000 per tonne with domestic mills (INR 39000 per tonne ex Mumbai). Taking into account an import hassle factor the real gap widens to nearly INR 4000 per tonne. This leaves the Indian mills ample elbow room to hike the prices by another INR 2500 per tonne to INR 3000 per tonne
The last fortnight of February promises to be eventful with the Chinese dragon wakes up from lunar slumber. Although the mills in line with international price movements have hiked the export levels by USD 50 per tonne they are competitive vis-à-vis the Black Sea counterparts. An ambiguous domestic sentiment will certainly make them aggressive on export. In this eventuality the Indian buyers would swap over to Chinese mills making the tidings onerous for Indian mills.
The Indian Long Product Price Index ILPPI continued in downward trends with 112 points last week whereas Indian Flat Products Index IFPPI is also gone down by 68 points. The overall price index INDSPI declined by 91 points.
| Class | 11-Feb | 18-Feb | Change | % |
| ILPPI | 7972 | 7860 | -112 | -1.4% |
| IFPPI | 9092 | 9024 | -68 | -0.7% |
| INDSPI | 8505 | 8414 | -91 | -1.1% |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 11-Feb | 18-Feb | Change | % |
| PI - TMT | 7777 | 7687 | -90 | -1.2% |
| PI - WRC | 8332 | 8196 | -136 | -1.6% |
| PI - Angle | 7790 | 7658 | -132 | -1.7% |
| PI - Channel | 7806 | 7715 | -91 | -1.2% |
| PI - Joist | 7378 | 7276 | -102 | -1.4% |
PI - Product Index
Flat products
| Category | 11-Feb | 18-Feb | Change | % |
| PI - Narrow Plates | 8421 | 8316 | -106 | -1.3% |
| PI - Wide Plates | 8684 | 8632 | -52 | -0.6% |
| PI - Hot Rolled | 8898 | 8798 | -100 | -1.1% |
| PI - Cold Rolled | 9988 | 10021 | 34 | 0.3% |
| PI - Galvanized | 9744 | 9690 | -54 | -0.6% |
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 | -1% |
| Hyderabad | -7% |
| Kandla | 0% |
| Kanpur | -3% |
| Kolkata | 0% |
| Mandi | 1% |
| Mumbai | -1% |
| Rudrapur | -2% |
Change is on Feb 18th as compared to 11th Feb 2011
Alang
| Product | Size | Change |
| Plate cuttings | 1" | 1% |
| Ships | Mixed | 0% |
Change is on Feb 18th as compared to 11th Feb 2011
Pencil ingot
| Location | Change |
| Ahmedabad | -3% |
| Alang | 0% |
| Bhiwari | 2% |
| Chennai | -1% |
| Durgapur | 1% |
| Ghaziabad | 3% |
| Hyderabad | -5% |
| Jaipur | 1% |
| Jamshedpur | 1% |
| Kanpur | -2% |
| Kolkata | 0% |
| Mandi | 1% |
| Mumbai | 0% |
| Muzzafarnagar | 3% |
| Nagpur | 0% |
| Raigarh | 2% |
| Raipur | 1% |
| Rourkela | 2% |
| Rudrapur | -1% |
Change is on Feb 18th as compared to 11th Feb 2011
Pig Iron
| Location | Change |
| Agra | -1% |
| Jallandhar | -1% |
| Kolkata | -1% |
| Raipur | -1% |
Change is on Feb 18th as compared to 11th Feb 2011
Sponge iron
| Location | Change |
| Bellary | -1% |
| Kolkata | 3% |
| Raigarh | 1% |
| Raipur | 1% |
| Rourkela | 1% |
Change is on Feb 18th as compared to 11th Feb 2011
2. Long products
Rebar (TMT QST)
Fe 415
12mm
| Location | Change |
| Ahmedabad | -1% |
| Bangalore | -4% |
| Chennai | -2% |
| Delhi | -1% |
| Indore | -1% |
| Kanpur | -1% |
| Kolkata | 0% |
| Mandi | 0% |
| Mumbai | 0% |
| Muzzafarnagar | -2% |
| Raipur | 0% |
| Rudrapur | -2% |
Change is on Feb 18th as compared to 11th Feb 2011
WRC
SWR14
5.5/6
| Location | Change |
| Chennai | -1% |
| Delhi | -7% |
| Kanpur | -1% |
| Kolkata | 0% |
| Raipur | 0% |
| Rudrapur | -1% |
Change is on Feb 18th as compared to 11th Feb 2011
ANGL
Grade A
65X65X6
| Location | Change |
| Ahmedabad | -1% |
| Bangalore | -4% |
| Chennai | 0% |
| Delhi | -8% |
| Indore | -1% |
| Kanpur | -1% |
| Kolkata | 0% |
| Mandi | 0% |
| Mumbai | 0% |
| Raipur | 0% |
| Rudrapur | -1% |
Change is on Feb 18th as compared to 11th Feb 2011
CHNL
Grade A
75/40
| Location | Change |
| Ahmedabad | -1% |
| Bangalore | -4% |
| Chennai | 0% |
| Delhi | -8% |
| Indore | -1% |
| Kanpur | -1% |
| Kolkata | 0% |
| Mandi | 0% |
| Mumbai | 0% |
| Raipur | 0% |
| Rudrapur | -1% |
Change is on Feb 18th as compared to 11th Feb 2011
JSTI
Grade A
250X125
| Location | Change |
| Ahmedabad | -1% |
| Bangalore | -2% |
| Chennai | 0% |
| Delhi | -8% |
| Indore | 0% |
| Kanpur | -2% |
| Kolkata | 0% |
| Mandi | 0% |
| Mumbai | 0% |
| Raipur | 0% |
| Rudrapur | -1% |
Change is on Feb 18th as compared to 11th Feb 2011
3. Flat products
HRC
Tube
2.5x1250
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | -5% |
| Indore | 0% |
| Kolkata | 0% |
| Ludhiana | -1% |
| Mumbai | 0% |
Change is on Feb 18th as compared to 11th Feb 2011
Patra
| Location | Change |
| Delhi | -8% |
| Ludhiana | -1% |
| Mandi | 0% |
Change is on Feb 18th as compared to 11th Feb 2011
Plates
Grade A
8X1250/1500
| Location | Change |
| Chennai | 0% |
| Delhi | -5% |
| Kanpur | -1% |
| Kolkata | 0% |
| Mumbai | 0% |
| Rudrapur | -1% |
Change is on Feb 18th as compared to 11th Feb 2011
Plates
GRADE B
12-20X2500
| Location | Change |
| Ahmedabad | 0% |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | -6% |
| Indore | -1% |
| Kanpur | -1% |
| Kolkata | 0% |
| Mumbai | 0% |
| Raipur | 3% |
| Rudrapur | 0% |
Change is on Feb 18th as compared to 11th Feb 2011
CR
DSK
0.63x1000
| Location | Change |
| Ahmedabad | -1% |
| Chennai | 0% |
| Delhi | -1% |
| Kanpur | 0% |
| Kolkata | 4% |
| Mumbai | -1% |
| Pune | -1% |
| Rudrapur | 0% |
Change is on Feb 18th as compared to 11th Feb 2011
GP
100Gms
0.4
| Location | Change |
| Mumbai | -1% |
| Chennai | 0% |
| Kolkata | 0% |
| Delhi | -2% |
| Ludhiana | 0% |
| Kanpur | 0% |
| Rudrapur | 0% |
| Bangalore | 0% |
Change is on Feb 18th as compared to 11th Feb 2011
GC
100Gms
0.4
| Location | Change |
| Bangalore | 0% |
| Chennai | 0% |
| Delhi | -2% |
| Kanpur | 0% |
| Kolkata | 0% |
| Mumbai | 0% |
| Ludhiana | 1% |
| Rudrapur | 0% |
Change is on Feb 18th as compared to 11th Feb 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
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