With weak demand, coupled with falling international steel price levels on Chinese aggression, Indian steel mills will have to exercise great caution in deciding their pricing policies for the month of October.
Indian steel giant Steel Authority of India Limited has already thrown a word of caution on the weekend but others like TATA Steel and JSW have brushed aside the Chinese threat. Dr JJ Irani director of TATA Sons and Mr Sheshagiri Rao joint MD and Group CFO of JSW Steel in recent interviews with CNBC TV18 have opined these sentiments.
But the offers for SS400 grade HRC at USD 510 CNF India, which translates to INT 25,687 per tonne inclusive of all duties and expenses, without MODVAT, is cheaper by more tan INR 6,000 per tonne as compared to Indian domestic prices, luring end users to resort to imports. Thus scenario for flat products in India remains bleak and only silver lining is that Indian steel mills can still capitalize the time required for imports to reach Indian shores.
On the other hand, market scenario for long products seems succulent with expected surge in demand from construction industry particularly in rural sector supplemented by the price levels having hit the deck. However the surprising fall in pencil ingots last week, leaves room for downward correction in the coming weeks.
Indian domestic steel prices exhibited weakening sentiments last week. The Indian Long Product Price Index ILPPI decreased by 48 points, after increasing for 3 consecutive weeks, whereas Indian Flat Products Index IFPPI dipped by mare 5 points, after increasing for 5 consecutive weeks. The overall price index INDSPI decreased by 27 points.
Class 18-Sep 25-Sep Change %
ILPPI 6363 6315 -48 -0.8%
IFPPI 7563 7559 -5 -0.1%
INDSPI 6935 6907 -27 -0.4%
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
Category 18-Sep 25-Sep Change %
PI - TMT 6088 6016 -72 -1.2%
PI - WRC 6883 6839 -44 -0.6%
PI - Angle 6021 5990 -31 -0.5%
PI - Channel 6063 6067 4 0.1%
PI - Joist 5614 5612 -1 0.0%
PI - Product Index
Flat products
Category 18-Sep 25-Sep Change %
PI - Narrow Plates 7219 7218 -2 0.0%
PI - Wide Plates 7302 7305 3 0.0%
PI - Hot Rolled 7400 7398 -2 0.0%
PI - Cold Rolled 8165 8156 -10 -0.1%
PI - Galvanized 8059 8036 -24 -0.3%
PI - Product Index
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1. Input material -Shocker slide
Melting scrap
80:20
HMS
Location Change
Chennai 0%
Kandla 1%
Mumbai -2%
Mandi 3%
Kolkata 3%
Kanpur 1%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Alang
Product Size Change
Ships Mixed 0%
Plate cuttings 1” -2%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Pencil ingot
Location Change
Mumbai -2%
Mandi -1%
Raipur 4%
Kanpur -1%
Kolkata -2%
Ghaziabad -2%
Muzzafarnagar -2%
Ahmedabad 1%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Pig Iron
Location Change
Raipur 0%
Kolkata 0%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Sponge iron
Location Change
Raipur -1%
Kolkata -2%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
2. Long products -Cracking edifice
TMT
Fe 415
12mm
Location Change
Chennai 0%
Mumbai -2%
Mandi -2%
Kolkata -2%
Delhi -3%
Kanpur -1%
Ahmedabad 1%
Indore 0%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
WRC
SWR14
5.5/6
Location Change
Chennai -3%
Raipur -1%
Kolkata 2%
Delhi 0%
Kanpur 0%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
ANGL
GRADE A
65X65X6
Location Change
Chennai -2%
Mumbai 0%
Mandi 0%
Raipur 0%
Kolkata -2%
Delhi 0%
Kanpur 0%
Ahmedabad 0%
Indore 1%
Bangalore 0%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
CNHL
GRADE A
75/40
Location Change
Chennai 0%
Mumbai 0%
Mandi 0%
Raipur 0%
Kolkata 0%
Delhi 0%
Kanpur 0%
Ahmedabad 1%
Indore 1%
Bangalore 0%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
JSTI
GRADE A
250X125
Location Change
Chennai 0%
Mumbai 0%
Mandi 0%
Raipur -1%
Kolkata 0%
Delhi 0%
Kanpur -1%
Ahmedabad 1%
Indore 0%
Bangalore 0%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
3. Flat products - Forebodings of Tsunami
HRC
Tube
2.5x1250
Location Change
Mumbai -1%
Ludhiana 0%
Kolkata 0%
Delhi 0%
Ahmedabad 0%
Indore 0%
Bangalore 0%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Patra
Location Change
Ludhiana -1%
Mandi 1%
Delhi 0%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Plates
GRADE A
8X1250/1500
Location Change
Chennai 0%
Mumbai -2%
Kolkata 1%
Delhi 0%
Kanpur 0%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Plates
GRADE B
12-20X2500
Location Change
Chennai 0%
Mumbai -1%
Raipur 1%
Kolkata 0%
Delhi 0%
Kanpur -1%
Ahmedabad 0%
Indore -3%
Bangalore 0%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
CR
DSK
0.63x1000
Location Change
Chennai 0%
Mumbai -1%
Pune -1%
Kolkata 0%
Delhi 0%
Kanpur 0%
Ahmedabad 0%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
GC
100Gms
0.4
Location Change
Chennai -1%
Mumbai -1%
Kolkata 0%
Delhi 0%
Kanpur -1%
Bangalore 0%
Change is on September 25th as compared to September 18th 2009
Change is in INR per tonne
Indian Export Levels - Succumbing to Sino aggression
Item Grade Size Delivery Change
PLTS Structural 12-40x2.5 FOB Vizag 0
HDG 100Gms 0.4 FOB Mumbai 0
PPGI Standard RAL 0.4 FOB Mumbai 0
Change is on September 25th as compared to September 18th 2009
Change is in USD per tonne
Indian Import Levels - On slippery ground
It is reported that Chinese HR offers are coming at USD 510 pr tonne on CFR basis for SS 400 grades.
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(Sourced from www.steelprices-india.com)
Monday, September 28, 2009
Monday Market Monitor - India (WEEK 39) - Haunted by dragon flu
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