TABLE OF CONTENTS & BOOKMARKS
RAW MATERIALS
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Iron Ore Pg 1
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Pellets Pg 1
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Scrap Pg 1
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Coal Pg 2
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SEMI FINISHED STEEL
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Sponge Iron Pg 3
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Pig Iron Pg 3
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Billet Pg 3
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FINISHED STEEL
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Rebars Pg 4
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Flat Steel Pg 4
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FERRO-ALLOYS
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Silico- Manganese Pg 4
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CURRENCY Pg 5
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STATISTICS Pg 5
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INDIAN STEEL MARKET SCAN
May, 2020 | Pg 01
What happened
Monthly average global iron ore fines (Fe 62%) decreased by 5% to
USD 83.95/MT, CFR China in April 2020 against last month at USD
88.1/MT, CFR China due to shift in demand from medium and
high-grade ore to low-grade iron ore for cost effectiveness.
What may happen
Global iron ore fines prices are expected to remain range-bound in
the near- to short-term.
What happened
Due to the extended nationwide lockdown steel mills either
suspended or curtailed operations resulting in limited
bookings.
SteelMint's Odisha iron ore fines (Fe 63%) assessment stands at INR
1,800-1,900/MT (ex- mines, including Royalty, DMF &
NMET).
What may happen
Bulk bookings are expected to remain low on sufficient iron ore
inventories and curtailed steel output.
What happened
Indian domestic pellet market was quiet for more than one month.
Later towards the end of the month pellet makers from India have
resumed offers in the domestic market, although domestic uptake
remains slow.
What may happen
India pellet makers are constantly exploring export opportunities
on dull domestic demand.
What happened
After bottoming out by March-end, imported scrap prices to Turkey
rebounded sharply by over USD 45/MT in 1st half of April on tight
supply and low scrap collections, although by end of April, low
demand amid lockdown, inched down the prices to USD 244/MT CFR
Turkey for USA HMS 1&2 (80:20)
What may happen
Continued tight supply at scrap yards is likely to be balanced by
low scrap demand by mills, keeping the prices more or less firm in
the near future.
INDIAN STEEL MARKET SCAN
May, 2020 | Pg 02
What happened
Dull demand and limited domestic trades resulted in less clarity on
prices.
What may happen
With plants resuming operations, trade activities are expected to
pick up in May.
What happened
Australian coking coal prices saw further downward movement during
the past month, with prices across all categories hitting multi-
month lows, as subdued demand outlook persisted globally amid the
worsening Covid-19 viral outbreak.
Premium HCC prices were assessed at around US$ 109.00/mt FOB
Australia at month end.
What may happen
Australian coking coal producers are hopeful that plans for easing
lockdown restrictions in certain countries point to the possibility
of spot demand returning as early as by the end of May.
What happened
Indonesian low-calorific value thermal coal prices have dropped to
record low levels over the last month, as the coronavirus pandemic
weakened demand for seaborne thermal coal in Asia.
Indonesian 4,200 kcal/kg GAR coal price plunged to around US$
26.00/mt FOB Kalimantan at April-end.
What may happen
Although China’s seaborne imports are holding up for now, India’s
coal imports from Indonesia may fall, with the country’s government
actively discouraging imports.
What happened
South African thermal coal prices touched a new low with RB2
(5500kacl/kg) offers being heard at USD 43-45/MT, FoB RBCT port
basis. The price plunge was majorly due to demand curbs by key
importers like India amid ongoing COVID-19 outbreak.
What may happen
With easing of lockdown restrictions in many countries, South
African thermal coal prices may get some support. However, a major
rise is unlikely given limited demand and restricted trade.
INDIAN STEEL MARKET SCAN
May, 2020 | Pg 03
What may happen
Sponge iron prices are less likely to find support till there is
limited production by furnaces. Once the plants resume full-fledged
billet production, prices of sponge iron may rebound.
What happened
Dull demand and limited domestic trades resulted in less clarity on
prices.
What may happen
With plants resuming operations, trade activities are expected to
pick up in May.
What happened
Amid dull domestic demand and COVID-19 outbreak across the globe,
all primary billet exporters were largely dependent upon China for
trades. CIS billet prices witnessed an M-o- M rise of USD 9/MT and
are USD 340/MT, FoB Black Sea
What may happen
India has started exempting the lockdown guidelines and gradual
resumption in construction activities could drive domestic billet
trades. However, exports would still dominate over domestic trade
in May
What happened
What may happen
Billet prices may remain supported as most of standalone rolling
mills are resuming operations, leading to good demand in spot
market despite limited supply/production.
INDIAN STEEL MARKET SCAN
May, 2020 | Pg 04
What happened
Indian large mills rolled over their rebar prices for April
2020.
What may happen
Large Indian mills yet to announce their finished steel prices but
there could be a correction in rebar prices for May. Whereas
secondary mills are yet to resume operations in most of the
locations in the central and eastern regions almost 40-50% mills
have resumed operations with limited capacity utilisation.
What happened
Indian steel mills rolled over flat steel prices in April due to
nation-wide lockdown. Also mills scaled down their operations owing
to limited manpower
Indian manufacturers aggressively exported HRC to Vietnam, China
and UAE. However, offers bottomed out on aggressive
competition.
What may happen
Major Indian steel producers have kept their steel prices unchanged
for May owing to limited trades in the domestic market.
What happened
Indian silico manganese prices have increased due to higher
manganese ore prices. Indian suppliers have met with good demand
from the export market.
What may happen
Prices may come down soon due to dull demand in the domestic market
as silico manganese prices have increased too much too fast.
What happened
Indian ferro chrome demand was absent due to curtailed operations
in the stainless steel units in the country. Prices have increased
marginally due to increase in China.
What may happen
Ferro chrome prices will stay firm due to the increase in chrome
ore prices and increase in Chinese domestic prices of ferro
chrome.
INDIAN STEEL MARKET SCAN
May, 2020 | Pg 05
Currency United State Dollar(1 USD)
2020-05-10 1 Week Earlier 2 Week Earlier 1 Month Earlier 3 Month
Earlier 6 Month Earlier
India (INR) 75.50 75.73 76.31 76.16 71.53 71.79
China (Yuan) 7.07 7.06 7.08 7.03 6.99 7.04
Brazil (Real) 5.73 5.45 5.59 5.10 4.30 4.20
Australia (Dollar) 1.53 1.56 1.56 1.58 1.49 1.47
South Africa (Rand) 18.35 18.74 19.03 18.02 14.91 14.72
United Arab Emirates (Dirham) 3.67 3.67 3.67 3.67 3.67 3.67
Europe (Euro) 0.91 0.90 0.92 0.91 0.92 0.91
Indonesia (Rupiah) 14969.92 14906.22 15457.88 15816.04 13703.86
14087.70
Russia (RUB) 73.47 75.29 74.49 73.47 63.55 63.84
Indian Statistics (Production/Export/Import)
Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20
Production
Coal (CIL) 50.02 58.02 63.11 66.26 84.36 -
Manganese Ore 0.24 0.29 0.22 0.25 - -
Chrome Ore 0.35 0.42 0.45 0.32 - -
Crude Steel 8.92 9.01 9.29 9.56 8.04 2.752
Export
Iron Ore Pellet 1.17 1.30 1.05 0.60 0.81 1.17
Mill Scale NIL NIL NIL NIL 0.03 Nil
Pig Iron 0.035 0.09 0.04 - 0.03 0.10
Flat Steel 0.86 0.71 0.66 - - -
Import
Scrap 0.38 0.39 0.5 - - -
Manganese Ore 0.15 0.16 0.31 0.23 0.26 -
Chrome ore 0.01 0.01 0.02 0.01 0.01 -
Flat Steel 0.26 0.39 0.37 0.3 0.3 -
Qty in MnT (Million Tons) Source SteelMint, PIB, CIL
(Provisional Data)
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