Monday Market Monitor - India (WEEK 36) - Market rejuvenates

The Indian Economy and Steel Industry looked all set for revival albeit at a cautious pace The GDP in last quarter expanded by 6.1% YoY, an improvement over 5.8%in the previous quarter. The steel industry proved to be a key driver behind this resurgence as crude steel production in July 20009grew by 4.3% YoY notching 4.73 million tonnes

Indian domestic steel prices continued roller coaster run during last week. The Indian Long Product Price Index ILPPI improved by 60 points whereas Indian Flat Products Index IFPPI improved by 244 points. The overall price index INDSPI improved by 147 points.
Class 28-Aug 04-Sep Change

ILPPI 6215 6275 60

IFPPI 7246 7489 244

INDSPI 6706 6853 147



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

Long Products
Category 28-Aug 04-Sep Change

PI - TMT 5880 5986 106

PI - WRC 6820 6804 -16

PI - Angle 5775 5920 145

PI - Channel 5854 5985 131

PI - Joist 5480 5552 72



PI - Product Index

Flat products
Category 28-Aug 04-Sep Change

PI - Narrow Plates 6946 7170 224

PI - Wide Plates 7002 7209 207

PI - Hot Rolled 7141 7330 190

PI - Cold Rolled 7736 8092 356

PI - Galvanized 7542 7954 412



PI - Product Index

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1. Input material - Gradual improvement

Input material prices continued to improve fuelled by a resilient long product market. Although, there were isolated pockets of negativity, which was ephemeral, in general the market was buoyant.

Melting scrap
80:20
HMS
Location Change

Chennai 0%

Kandla -1%

Mumbai 1%

Mandi 1%

Kolkata 1%

Kanpur 6%



Change is on September 4th 2009 as compared to August 28th 2009

Alang
Product Size Change

Ships Mixed 1%

Plate cuttings 1" -1%



Change is on September 4th 2009 as compared to August 28th 2009

Pencil ingot
Location Change

Mumbai 1%

Mandi 0%

Raipur -1%

Kanpur 6%

Kolkata 11%

Ghaziabad 3%

Muzzafarnagar 2%

Ahmedabad 1%



Change is on September 4th 2009 as compared to August 28th 2009

Pig Iron
Location Change

Raipur 10%

Kolkata 14%



Change is on September 4th 2009 as compared to August 28th 2009

Sponge iron
Location Change

Raipur 8%

Kolkata 9%



Change is on September 4th 2009 as compared to August 28th 2009

2. Long products - Fortunes reverse

TMT
Fe 415
12mm
Location Change

Chennai -1%

Mumbai 2%

Mandi 1%

Kolkata 4%

Delhi 4%

Kanpur 4%

Ahmedabad 0%

Indore 1%



Change is on September 4th 2009 as compared to August 28th 2009

WRC
SWR14
5.5/6
Location Change

Chennai -4%

Raipur 0%

Kolkata 1%

Delhi 3%

Kanpur 0%



Change is on September 4th 2009 as compared to August 28th 2009

Structural Steel
Product ANGL CHNL JSTI

Grade GR A GR A GR A

Size 65x6 75/100 250x125

Mumbai 3% 2% 0%

Chennai 0% 0% 0%

Kolkata 2% 2% 0%

Delhi 0% -1% -1%

Mandi 2% 3% 0%

Raipur 4% 4% 4%

Kanpur 3% 4% 4%

Ahmedabad 2% 1% 3%

Indore 3% 3% 2%

Bangalore 3% 3% 3%



Change is on September 4th 2009 as compared to August 28th 2009

3. Flat products - Flicker before darkness

It is reported that Indian steel makers have increased their prices for fat products the month of September 2009

As per report, Steel Authority of India Limited has decided to raise prices for some of the steel products by up to INR 1500 per tonne. TATA Steel is also reported to have increased prices of its flat steel products by 3% to 4% in the spot market in line with the firming of demand. Ispat Industries is also reported to have increased prices by INR 1,500 per tonne. Other steel makers JSW Steel, Essar Steel etc are reported to be considering similar options.

The move is to capitalize higher global levels but interestingly with Chinese mills offering lower prices the global levels are likely to soften this month.

HRC
Tube
2.5x1250
Location Change

Mumbai 0%

Ludhiana 4%

Kolkata 4%

Delhi 3%

Ahmedabad 2%

Indore 0%

Bangalore 1%



Change is on September 4th 2009 as compared to August 28th 2009

Patra
Location Change

Ludhiana 0%

Mandi 0%

Delhi 3%



Change is on September 4th 2009 as compared to August 28th 2009

Plates
Product PLTS PLTS

Grade GRA GRB

Size (mm) 8x1.5 12-20x2.5

Chennai 3% 2%

Mumbai 0% 0%

Raipur 0% 1%

Kolkata 4% 3%

Delhi 1% 3%

Kanpur 2% 2%

Ahmedabad 0% 3%

Indore 0% 0%

Bangalore 0% 3%



Change is on September 4th 2009 as compared to August 28th 2009

CR
DSK
0.63x1000
Location Change

Chennai 3%

Mumbai 3%

Pune 3%

Kolkata 1%

Delhi 7%

Kanpur 3%

Ahmedabad 7%



Change is on September 4th 2009 as compared to August 28th 2009

GC
100Gms
0.4
Location Change

Chennai 7%

Mumbai 1%

Kolkata 7%

Delhi 5%

Kanpur 2%

Bangalore 3%



Change is on September 4th 2009 as compared to August 28th 2009

Indian Export Levels - Residual activity during holidays

The export levels for all products remained dormant as the twin dedicated markets of Middle East and Europe went in hibernation during holidays.

Item Grade Size Delivery Change

PLTS Structural 12-40x2.5 FOB Vizag 5

HDG 100Gms 0.4 FOB Mumbai 0

PPGI Standard RAL 0.4 FOB Mumbai 0



Change is on September 4th 2009 as compared to August 28th 2009
Change is in USD per tonne

Import Bookings - HR levels down

1. HRC in cold rolling grade 20,000 tonnes has been booked at USD 563 per tonne CNF.

2. HRC in SS400 grade 20000 tonnes has been booked at USD 543 per tonne CNF

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Posted in: steel price