Indian domestic steel prices continue to exhibit weakening sentiments last week. The Indian Long Product Price Index ILPPI decreased by 114 points whereas Indian Flat Products Index IFPPI dipped by 36 points, slower than WEEK 45. The overall price index INDSPI decreased by 76 points.

ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index

Long Products

PI - Product Index

Flat products

PI - Product Index

To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html

You can now get ILPPI, IFPPI and INDSPI as SMS alert on mobile by submitting your details at http://steelprices-india.com/smsalert

1. Input material - Reels under downstream backlash

Input materials continued to exhibit negative trend across products and locations last week. As per market sources prices of pencil ingot is facing immense demand pressure, although firmed up a bit in the last few days of last week, may weaken further in the coming week .

Melting scrap
80:20
HMS

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

Alang

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

Pencil ingot

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

Pig Iron

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

Sponge iron

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

2. Long products - Endless myriad of market movements

November 2009 heralds toughest phase for long product prices reminiscent of the peak recession in October 2008.

The movement of Indian Long Product Price Index ILPPI clearly reflects that the prices of long products in India are on the downhill since October 14th 2009 and have reduced by more than 8%. Despite the downward sentiments in last 2 months, Indian long product players have exhibited positive sentiments till October end but now they have succumbed to the market realities.

It seems that Indian long product market, devoid of demand, was backed by the pre Diwali optimism, culminating in accumulation of stocks in anticipation of demand ignition post festivals, but to the utter chagrin of market players, mirage vanished leaving aspirations in a limbo.

Oblivious to the realities in desperation sellers opted to keep their hopes pinned on a belated revival. However the inevitable slide soon commenced admonishing residual expectation with contempt. The prices of long products which started sliding in mid September have maintained its momentum.

ILPPI - Indian Long Product Price Index

To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html

Market players attribute following factors for deepening pessimism in long products market

1. Liquidity crunch is playing pivotal role in declining demand for long products. On one side small and medium projects in reality sector have been gasping for credit, whereas on the hindsight major projects, running on pre recession sanctions are on the verge of completion.

2. Despite all the hype created by the government about stimulus for the construction industry, it still reels under the recessionary pandemic scuttling new projects as consumer confidence wanes.

Indian steel majors had a fairy run till mid October, as the latent demand from mega projects kept the inventories within manageable levels, keeping the prices afloat. With the progressive exhaustion of demand and inadequate new demand generation from the secondary sector prices crumbled under its own weight with mounting inventory.

The steel majors resorted to price cuts in an attempt to arrest the damage narrowing the price gap with secondary manufacturers. Imperiled by such daunting postures the secondary sector readjusted its pricing as a survival tactics triggering price war.

Rebars from secondary producers are being sold below INR 28,000 per tonne, inclusive of ED and VAT by secondary players in NCR Region. Further price cuts cannot be written off as they have to offload inventory before it starts cannibalizing residual margins.

A market player highlighted that “Normally, we could find some bright spots. But this time, the situation s grim as almost all the locations in India are exhibiting weak signals.”

The low offtake of pencil ingots is driving rebar prices down and it is reported that at one of the most decisive location viz., “Raipur” price has already plummeted to INR 19,000 per tonne plus taxes. Experts opine that further dip is inevitable in this week taking it below INR 18,000 per tonne.

Remarkably the lowest level of pencil ingot price in the last 2 years was reported during the last week of October 2008 and June July 2009 touching about INR 18,000 per tonne plus taxes at Raipur.

In per tonne
Exclusive of ED and VAT

If pencil ingot prices go down by further INR 1,000 per tonne in coming days, we shall witness lowest point after the boom setting new record and bursting the bubble of “All is well “ perpetuated by the state and steel manufacturers.

On the other hand, prices of domestic iron ore, backed by the export demand, and have climbed by 24% in last one month squeezing the margins of secondary producers. Shedding of flab is inevitable as some small players will be eased out bringing production and cost rationalization leading to demand supply match and recovery next month.

TMT
Fe 415
12mm

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

WRC
SWR14
5.5/6

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

ANGL
Grade A
65X65X6

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

CNHL
Grade A
75/40

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

JSTI
Grade A
250X125

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

3. Flat products - Clueless amidst ambiguous international signals

The sublime move in Indian flat product market continues and is reflected by a statement of chairman SAIL on November 10th 2009 as mid month announcements for correction are quite rare. Mr SK Roongta at the India Economic Summit told reporters that “A small correction of INR 400 to INR 500 per tonne will happen soon for the flat steel products. Its rates should stabilize at marginally lower levels.”

Of late, due to paucity of demand, depressed price levels have become integral to the Indian steel market. The factors underlining this abject condition have been a favorite topic of introspection but it would be appropriate to delve into the activities of the suppliers and buyers post debacle rather than indulge in routine post mortem.

Flat product prices, a vital benchmark for the industrial demand and economic growth, have not shaken stupor for the last couple of months.

The much touted revival in steel market seems a misnomer in the backdrop of the abysmal market performance in the last couple of months. Need based buying is the prevailing approach as buyers prefer to wait for a more “sensible deal”.

Some murmurs of revival in auto and power sector have come as a welcome reprieve although its impact is limited due miniscule share of Indian majors in this value added segment. Demand from auto majors like Ashok Leyland, TATA Motors, Hyundai and Ford motors and project based demand from BHEL, L&T etc has proved to be savior to some extant.

Indian steel majors viz., JSW, Essar, TATA Steel, SAIL etc have resorted to empirical marketing strategies including volume based discount and hike in dealers margin.

Import has contributed its bit in the quagmire. It is learnt that about 15000 tonnes of CRC was imported at a landed price of INR 31000 per tonne. Ironically, even this quantity is facing liquidation problems due to lack of demand. About 9000 tonne is still left unsold after 1 month of arrival.

The situation looks all set for an extended dry spell with no significant activity in other consuming segments viz., tube making , fabrication ,furniture ,cable tray, drum making etc which is catered by the retail . The Chinese flat product prices have shown a token revival in the last fortnight but it cannot be ascertained as stable phenomenon with bipolar symptoms from Ukraine and Russia.

HRC
Tube
2.5x1250

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

Patra

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

Plates
Grade A
8X1250/1500

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

Plates
GRADE B
12-20X2500

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

CR
DSK
0.63x1000

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

GC
100Gms
0.4

Change is on November 13th as compared to November 6th 2009
Change is in INR per tonne

4. Indian Export Levels - Mills secede to Chinese provocation

The export levels for Indian galvanizers went down clearly last week mills on lower Chinese offers, although some mills, already booked for December production, maintained previous levels.

Change is on November 13th as compared to November 6th 2009
Change is in USD per tonne

Indian Import Levels - China ups the ante

Chinese offers for HR firmed up further last week. HRC in SS 400 in 3mm to 12mm in 1250/1500 was being offered at USD 520 per tonne CFR levels up by USD 10 pr tonne from previous week.

To know more details on steel prices subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com with contact details. This is a paid service with subscription fee of INR 60,000 plus ST for 12 months. This will keep you in tune with daily happenings in Indian and global steel markets for steel prices. Tailor made package with restricted access to match your needs at lower prices are also available.

(Sourced from www.steelprices-india.com)

Indian domestic steel prices continue to exhibit weakening sentiments last week. The Indian Long Product Price Index ILPPI decreased by 32 points whereas Indian Flat Products Index IFPPI dipped by a whoping 117 points. The overall price index INDSPI decreased by 73 points.

ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index

Long Products

PI - Product Index

Flat products

PI - Product Index

To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html

You can now get ILPPI, IFPPI and INDSPI as SMS alert on mobile by submitting your details at http://steelprices-india.com/smsalert

1. Input material -

Input materials exhibited a negative trend across products and locations last week. As per market sources prices of pencil ingot are to face demand pressure this week and may weaken further a bit. This is being attributed to gap between increased supply and reduced demand.

Melting scrap
80:20
HMS

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

Alang

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

Pencil ingot

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

Pig Iron

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

Sponge iron

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

2. Long products - Disappointment writ large

Indian demand for long products, mainly for rebar, seems to have vanished off late. Market players are in highly pessimistic mood reminding of the worst periods of recession. The demand of rebar from small and medium project seems to have reduced a lot as many of them have either stopped the work or slowed down the pace. The only saving grace is from large size infrastructure projects, which are continuing to proceed at normal levels.

Indian prime producers are badly hit as despite their reduction in price levels, the gap with secondary producer’s remains above INR 5,000 alluring the diminished demand to migrate to secondary sources. As per reports, secondary rebar makers are selling at INR 27,000 per tonne levels, inclusive of all taxes, as against INR 32,500 per tonne levels from main producers.

On the whole, mood is very negative and as such even secondary players, despite price cutting, are finding it difficult to keep their mills loaded with the orders.

In other words, the demand seems to have stalled a bit defying the projections from the government and Indian steel makers. Market players are not too optimistic for any improvement till the end of 2009. Thus it is anticipated that prices of long products would remain under severe pressure due to low demand in coming times.

TMT
Fe 415
12mm

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

WRC
SWR14
5.5/6

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

ANGL
GRADE A
65X65X6

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

CNHL
GRADE A
75/40

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

JSTI
GRADE A
250X125

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

3. Flat products - Peak gloom still awaited

The long awaited price adjustment in flat products finally unraveled as the Indian mills came to terms with the near dead domestic demand and threat of import from China, Ukraine and Russia. It is learnt from market sources that HRC and CRC prices have been cut by INR 1500 per tonne whereas HDG prices have been reduced by INR 1000 per tonne from the October levels.

However, the gap between import offers and domestic levels continues to exist. The import offers from China are at USD 505 per tonne to USD 510 per tonne CNF India translate to INR 25,400 per tonne to INR 26,000 per tonne after considering import taxes and expenses as against new domestic level of about INR 29,500 per tonne landed at Mumbai net of ED and VAT (On like to like basis).

Thus the flat product market is in firm grip of pessimism which seems tightening with each passing week as buyers refuse to return .The steel majors had anticipated some flutter after reluctantly giving rebate of INR 1500 per tonne across the board in HRC and CRC and INR 1000 in HDG.

However all aspirations seems to have been contemptuously dismissed as buyers, despite depleted stock, prefer a wait and watch policy with negative signals from international market where despite Chinese let up the pressure seems to be building from Ukrainian and Russian mills who have become aggressive as the mills have ramped up production with capacity utilization touching 60% to 70% mark . However with winter on the anvil there is a slump in domestic demand compelling them to divert volumes in the international market likely to gravitate the prices further.

In India prices which remained firm till September owing to supply constraints as major mills underwent capital maintenance seems to be bulking under pressure of augmented supply as most of the mills are operating full stream whereas demand remains abysmally poor. Steel majors are resorting to desperate measures like price protection and doling out gifts against committed volumes reminiscent of peak recession in October 2008 to lure buyers.

The sentiments will remain mellowed at least till the end of winter in the absence of demand resurrection.

HRC
Tube
2.5x1250

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

Patra

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

Plates
GRADE A
8X1250/1500

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

Plates
GRADE B
12-20X2500

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

CR
DSK
0.63x1000

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

GC
100Gms
0.4

Change is on November 6th as compared to October 30th 2009
Change is in INR per tonne

4. Indian Export Levels - Hiatus amidst Chinese aggression

The export levels for Indian mills remained static last week despite Chinese threat for higher thicknesses in coated products. On the other hand no transactions were reported for plates as the buyers expectations are quite far away from Indian seller’s expectations due to Ukrainian and Chinese aggression.

Change is on November 6th as compared to October 30th 2009
Change is in USD per tonne

Indian Import Levels - Ambiguity plagues

Chinese offers for HR firmed up a bit last week. HRC in SS 400 in 3mm to 12mm in 1250/1500 is being offered at USD 510 per tonne CFR levels. On the other hand CR grade HR offers are not very transparent after NLMK selling a large parcel at USD 500 CFR levels and
Current offers are at much higher levels.

To know more details on steel prices subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com with contact details. This is a paid service with subscription fee of INR 60,000 plus ST for 12 months. This will keep you in tune with daily happenings in Indian and global steel markets for steel prices. Tailor made package with restricted access to match your needs at lower prices are also available.

(Sourced from www.steelprices-india.com)

Indian domestic steel prices continue to exhibit weakening sentiments last week. The Indian Long Product Price Index ILPPI decreased by 81 points whereas Indian Flat Products Index IFPPI dipped by 52 points. The overall price index INDSPI decreased by 67 points.

ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index

Long Products

PI - Product Index

Flat products

PI - Product Index

To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html

You can now get ILPPI, IFPPI and INDSPI as SMS alert on mobile by submitting your details at http://steelprices-india.com/smsalert

Weak sentiments in last weak reflect that Indian steel majors are likely to reduce their price for November

1. Input material - Under pressure

Melting scrap
80:20
HMS

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

Alang

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

Pencil ingot

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

Pig Iron

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

Sponge iron

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

2. Long products - Slide continues

TMT
Fe 415
12mm

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

WRC
SWR14
5.5/6

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

ANGL
GRADE A
65X65X6

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

CNHL
GRADE A
75/40

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

JSTI
GRADE A
250X125

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

3. Flat products - Major weakening

HRC
Tube
2.5x1250

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

Patra

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

Plates
GRADE A
8X1250/1500

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

Plates
GRADE B
12-20X2500

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

CR
DSK
0.63x1000

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

GC
100Gms
0.4

Change is on October 30th as compared to October 23rd 2009
Change is in INR per tonne

4. Indian Export Levels - Stagnant

Change is on October 2nd as compared to September 25th 2009
Change is in USD per tonne

Indian Import Levels - Confused situation

After the lowest reported level of USD 495 per tonne CNF India, Chinese mills and sellers, after slight rebound in Chinese domestic prices, tried to increase export offers by USD 20 per tonne in the first few days of last week, which they retracted by weekend to some extant.

On the weekend, Chinese offers for 3mm to 12mm SS 400 grade HRC in 1250mm / 1500mm width were at USD 505 per tonne to USD 510 per tonne CFR Mumbai.

But buyers were confused and most of them decided to hold their decisions. This happened after news spread that NLMK has booked a 30,000 tonne cold rolling grade HRC parcel at USD 500 CNF Mumbai.

As per market sources, Russian mills are under pressure to load their mills amid increased availability (BF restarts) and reduced demand due to incoming winter season and may reduce their prices further.

To know more details on steel prices subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com with contact details. This is a paid service with subscription fee of INR 60,000 plus ST for 12 months. This will keep you in tune with daily happenings in Indian and global steel markets for steel prices. Tailor made package with restricted access to match your needs at lower prices are also available.

(Sourced from www.steelprices-india.com)

Indian domestic steel prices continue to exhibit weakening sentiments last week. The Indian Long Product Price Index ILPPI decreased by 13 points whereas Indian Flat Products Index IFPPI dipped by 64 points. The overall price index INDSPI decreased by 37 points.

ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index

Long Products

PI - Product Index

Flat products

PI - Product Index

To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html

You can now get ILPPI, IFPPI and INDSPI as SMS alert on mobile by submitting your details at http://steelprices-india.com/smsalert

1. Input material - Tailspin continues

The prices of input material dipped without any respite for the 3rd consecutive week . Brief periods of correction have promptly paled into another round of decline in the absence of demand for downstream long products.

International scrap prices have played first fiddle with sentiments remaining mellowed as demand of re bars has remained abysmally poor keeping the mills away from the market. Likewise the debacle in Chinese steel prices owing to surplus production and waning demand has kept the scrap prices low as mills scurry from production.

Melting scrap
80:20
HMS

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

Alang

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

Pencil ingot

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

Pig Iron

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

Sponge iron

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

2. Long products - Expectant spirits

The long product prices although has not shown any positivity in the recently however the happenings have been less pronounced compared to flat products. The market seems agog with expectation that the prices have hit the bottom as most of the suppliers are already producing below cost and would certainly bid for price hike to survive . Moreover with the culmination of festivities in India the situation is ripe for pick up in construction activities which has remained subdued for long . Massive allocation by the government for housing and infrastructure development in rural India will certainly unleash a period of hiked consumption.

TMT
Fe 415
12mm

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

WRC
SWR14
5.5/6

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

ANGL
GRADE A
65X65X6

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

CNHL
GRADE A
75/40

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

JSTI
GRADE A
250X125

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

3. Flat products - Scene becomes murkier

The flat product market has not seen any happenings over the last 4 weeks. The prices are at abject level as the market prices diminishes week on week in the absence of demand. The negativity is having an extended run as buyers are well stocked which refuses to deplete in the absence of end use demand as well as the threat of Chinese imports. It is reported that some steel majors have been doling out sops like cash discount to the tune of INR 1200 -1500 per tonne and kind like Gold coins (3gms) on purchase of 10 tonne and above. The writing on the wall is clear that steel majors would go for price reduction in November .

HRC
Tube
2.5x1250

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

Patra

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

Plates
GRADE A
8X1250/1500

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

Plates
GRADE B
12-20X2500

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

CR
DSK
0.63x1000

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

GC
100Gms
0.4

Change is on October 23rd as compared to October 16th 2009
Change is in INR per tonne

4. Indian Export Levels - Wilts under Chinese pressure

The rampaging Chinese offers has not only send the offer levels crashing , but soaring buyers expectation for a cheaper booking . The market is in huddle expecting further decline. The ensuing imbroglio eludes clarity and definite direction. The market is highly China centric.

Change is on October 23rd as compared to October 16th 2009
Change is in USD per tonne

To know more details on steel prices subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com with contact details. This is a paid service with subscription fee of INR 60,000 plus ST for 12 months. This will keep you in tune with daily happenings in Indian and global steel markets for steel prices. Tailor made package with restricted access to match your needs at lower prices are also available.

(Sourced from www.steelprices-india.com)