IRON and STEEL
Rail & Railways
NMDC (Chhattisgarh) supplied total of 222 rakes (0.85 MnT) of iron ore in the month of Jul’19, down 28% against 310 rakes (1.19 MnT) a month before in Jun’19, according to railway movement data maintained with SteelMint.
NMDC supplied 18 rakes (0.07 MnT) to state-based units in Jul’19, down 51% against 37 rakes (0.14 MnT) a month before.
Owing to seasonal effect (monsoon) dispatches from the mines were down and also it resulted in increased loading time. Another reason was plunge in domestic sponge and billet prices amid weak market fundamentals.
NMDC’s supply to outside state-based units fell 27%-: The procurement by units outside C.G also witnessed a decline of 27% on monthly basis to 165 rakes (0.64MnT) in Jul'19 as against 226 rakes (0.87 MnT) in Jun'19.
JSW Steel (Dolvi) sourcing from NMDC recorded at 36 rakes in Jul'19, against 28 rakes a month before.
RINL procurement from NMDC Bailadila mines in Jul'19 down 42% on monthly basis to 85 rakes as compared to Jun'19 procurement at 146 rakes.
KIOCL procured 35 rakes in Jul’19 compared to 34 iron ore rakes from NMDC in Jun'19.
Movement for exports fall 17% in Jul'19-: NMDC’s movement of iron ore export for the month of Jul’19 witnessed 17% declined to 39 rakes as compared to 47 rakes in Jun’19.
SteelMint in conversation with trade sources indicated that low grade iron ore fines export price have come down sharply following global trend. SteelMint’s assessment for low grade (Fe 57%) iron ore fines is around USD 55-60/MT, CFR China down by USD 10/MT as against being USD 65/MT, CFR China a week before. In a month’s time, low grade fines export assessment has come down by around USD 30/MT.
Indian long steel market observed surge in price range this week, however trades not upto the mark amid sufficient supply and lessened export inquiries.
Neelachal Ispat Nigam Ltd (NINL), a public sector steel entity and largest merchant supplier of steel-grade pig iron in India likely to shut down its 700,000 MTPA Coke oven plant on financial crisis, SteelMint learned from market participants.
This week, Iranian billet export market was reported hushed. No deals were witnessed and mills are in no rush to conclude October deals. Also, country’s billet export offers are standing still at USD 385-390/MT, FoB identical as last week. The prime reason for the market reticence is Eid Festivity.
Vizag Steel also known as RINL, the state-owned steel maker under the Ministry of Steel, had invited tender for export of 10,836 MT billets, 5,418 MT blooms and 8,127 MT wire rod to Nepal on 30th Jul'19.
Indian Ferro Chrome prices have gone up marginally from last week as most producers reduced their production levels in line with poor demand. Limited Quantity is available in the domestic market as producers have reduced their allocation in the domestic market to curb the free fall of prices. However, this has been countered by demand in the domestic market which has remained sluggish.