IRON and STEEL
Indian Silico Manganese prices fall in Durgapur amid moderate demand. However, in Raipur, prices remained the same as compared to the previous week. Demand in the domestic market remains lackluster.
Meanwhile, inquiries are developing in the global market especially from Japan. A Durgapur based producer stated that producers in Durgapur had been maintaining a higher level of prices as compared to Raipur for quite some time, and it was just a matter of time before the prices fell.
Silico Manganese offers for 60-14 grade in Raipur are in the range of INR 65,000 - 65,500/MT Ex-Raipur and in Durgapur deals are being concluded at around INR 66,500-67,000/MT Ex-Durgapur. Prices are stable W-o-W basis in the export market owing to limited demand. Producers are offering Silico Manganese 60-14 grade in the range of USD 930-940/MT and grade 65-16 is being offered at USD 1030-1040/MT in the export market.
On the future outlook, producers are afraid that the prices may fall further owing to bearish market sentiments. With steel prices continuously falling, one cannot expect much rise in Silico Manganese prices and moreover, producers are sitting on enough inventories now and therefore, prices are likely to continue to go on a downtrend.
As per new price circular released, Japan’s leading EAF mini-mill - Tokyo Steel has lowered the domestic H2 scrap purchase price by JPY 500/MT (USD 5) at all five works in Japan. New prices for all grades shall be effective from tomorrow (15th June'19)
Amid falling Indian domestic sponge prices & decline in Bangladesh imported scrap prices, Indian sponge iron export offers have come down by USD 10-15/MT in recent deals reported, as per assessment made by SteelMint.
SteelMint learned from industry participants that Indian imported scrap prices inch down on a weekly basis in limited deals reported. Following continued global price fall, Indian scrap importers remain majorly cautious before buying actively amid weakening local semi-finish prices and still subdued finish steel demand.
SteelMint in conversation with market participants learned that Indian HRC import offers from Korea reported decline by around USD 10/MT for July- August shipments.
Aimed at restricting imports through yet another non-tariff measure, the steel ministry has solicited introduction of port of entry restrictions for scrap and second hand or defective steels.
SteelMint in conversation Indian pellet makers and other market participants analyzed that bids for Indian pellets have witnessed increment this week. Following surge in global iron ore fines price, pellet export prices has also strengthened this week.