Category Archives: Indian Steel Prices

Section 232 Continues to Cast a Shadow Over Emerging Steel Markets

Brazil

Brazilian steelmakers are optimistic about the strength of domestic consumption in 2018, highlighting improving market fundamentals in both the local and global steel markets. Additionally, Brazilian exports to the United States are temporarily exempt from measures related to the Section 232 investigation.

Russia

Negotiations in the Russian Federation remain arduous. Trading houses continue to be frustrated with the pricing positions adopted by their domestic suppliers. The latest initiative is viewed as unwarranted and not supported by underlying demand.

India

The Indian steel industry is forecasting that underlying demand will remain strong until mid-June, supported by government infrastructure spending and strengthening consumer demand. Nonetheless, MEPS notes growing resistance from end-users to the recent price increases. Moreover, the Modi government signalled it planned to formally lodge a trade dispute against the United States, at the World Trade Organisation (WTO), if the Trump administration does not exempt Indian steel goods from rising tariffs.

Ukraine

Supply chain participants report no changes to business activity, in the Ukrainian steel market. Stockists are concerned about carrying too much inventory over the next two months, fearing a downward price correction. Export activity is stable, with prices under renewed negative pressure following developments in the Chinese market.

Turkey

End-user demand in Turkey is tepid, disrupted by Mustafa Kemal Atatürk (National Sovereignty and Children’s Day), and renewed political uncertainty. Presidential and parliamentary elections are scheduled for June. The depreciation of the Turkish lira against the US dollar further exacerbated the situation. Scrap brokers predict that the domestic mills will try to push scrap prices down again in the near future, as both export and local demand remains slow.

UAE

Challenging business conditions persist, in the United Arab Emirates. Distributors are adopting a “wait-and-see” attitude, expecting purchasing activity to slow down ahead of the festive month of Ramadan. However, the outlook for the remainder of 2018 is positive, after the announcement of new commercial, residential and infrastructure projects, in Dubai and Abu Dhabi. Outside the GCC region, export opportunities are limited.

South Africa

South Africa’s Department of Trade and Industry (DTI) failed to persuade the US government to exempt the country’s steel and aluminium exports, from the tariffs, stipulated in the Section 232 proclamation. In further submissions, the ministry proposed a settlement based on 70 percent of the 2017 exports as a quota to the US. South Korea negotiated a similar quota arrangement with provisions, in late March.

Mexico

Mexican steel traders retain a cautious outlook for the second quarter. Downstream buying activity is unsettled by the aggressive pricing strategies adopted by domestic suppliers. Moreover, developments across the border in the United States continue to be watched carefully. Meanwhile, the National Chamber of Iron and Steel Industry (CANACERO) pressed the government for additional measures to protect the domestic manufacturing and steel industries from foreign competition.

INDIA STEEL MARKET ROUNDUP FROM MEPS INTERNATIONAL LTD

Indian hot rolled coil selling figures were steady in May, month-on-month, according to MEPS. However, end-users were still only purchasing for immediate requirements.

Indian customers have preferred to delay bookings, for commodity plate, in anticipation of further price concessions from both domestic and foreign suppliers. Meanwhile, coated coil transaction values held firm despite subdued market confidence.

Negative price expectations have gain momentum in the wire rod market. Distributors operating in Durgapur, Mumbai and Raipur claim that the downward pressure is the result of the availability of foreign products.

Purchasing activity for rebar has begun to soften. End-users are hesitating about placing orders, whereas the steelmakers are keen to close deals.

Merchant bar stockists continue to be hesitant about placing orders. This is due to tight credit conditions, low end-user demand and expectations of further price cuts.

Source: MEPS – Developing Markets Steel Review – May Edition
Also See: MEPS Indian Steel Prices Online

INDIAN STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD

According to the latest report by MEPS, buying sentiment, for hot rolled coil, has failed to improve in India. The Steel Authority of India (SAIL) has kept prices for its commercial grade hot rolled coil material unchanged as a result.

The outlook for the plate market is unchanged. Local stockists report that the settlement of payments from customers remains a problem. Moreover, demand from state-funded construction and infrastructure projects has yet to come on-stream.

Cold rolled coil negotiated price settlement values were unchanged. Distributors have been buoyed by an upturn in shipments to the automobile manufacturers. However, orders from engineering and pipe fabricators were weaker than previously forecast. Coated coil values were stable during the period under review.

Wire rod stockists are forecasting that trading volumes will begin to improve from mid-September onwards. Structural section transaction values edged, marginally, higher on the back of rising production costs.

Procurement activity, for rebar, remains weak. The pricing positions of secondary producers based in the Central and Western states have begun to shadow the cost of pencil ingots and billets

Merchant bar producers were unable to hold on to the price gains achieved in weeks 36 and 37. Purchasing activity amongst local construction firms is weak.

Source: MEPS – Developing Markets Steel Review – September issue

INDIAN STEEL PRICE ROUNDUP FROM MEPS INTERNATIONAL LTD

Sales volumes for hot rolled coil have slowed down in India’s northern and central states according to MEPS (International) Ltd. Stockists operating in these regions have begun to offer additional discounts to facilitate deals. Offers from Asian suppliers of commercial grade coil for August shipment stood at US$535/550 per tonne CFR (excluding 7.5 percent import duty and port Developing Markets Steel Reviewhandling expenses).

Quotations from Asian hot rolled plate suppliers for August shipment stood at US$540/550 per tonne CFR (excluding import duty).

During recent negotiations, customers and suppliers agreed a rollover of June’s cold rolled coil figures. Quotations from Asian steel suppliers, for August delivery, stood at US$600/610 per tonne CFR (excluding 7.5 percent import duty and port handling expenses) – down 2.4 percent, month-on-month.

Hot dipped galvanised coil producers have kept selling values at the level established in June. Primary steelmakers have expressed concerns over the government’s decision to impose an import duty of 2.5 percent on metallurgical coking coil. Previously, there was no duty on this key steelmaking raw material.

Procurement activity of wire rod has, on average, fallen by 30 percent. However, transaction values have been support by high billet and ferrous scrap prices. Rashtriya Ispat Nigam Limited (RINL) has elected to increase its July basis selling figure to Rs42,230 per tonne (excluding all taxes). The adjustment has been blamed on the higher cost of domestic iron ore and a recent hike in railway freight charges.

Buying sentiment is unchanged for medium sections and beams. Monsoon rains have restricted construction activity in the central, northern and southern states.

Procurement activity for reinforcing bar has been restricted by the onset of the monsoon season and high inventory levels. Steel production in Andhra Pradesh and Telangana has been unsettled by high electricity tariffs and power shortages.

The business environment has begun to soften for merchant bar. Meanwhile, the government has maintained the import duty on structural steel products at 5.0 percent.

Source: MEPS – Developing Markets Steel Review – July issue