Indian

Steel Market Scan

Monthly Overview
July 2021

www.steelmint.com
 CONTENTS

Shutdown of small units, rising inventory to keep prices under pressure .................................... 1

Snapshot Global Prices .................................................................................................................................................... 2

Snapshot Indian Domestic Prices ............................................................................................................................. 3

Statistics....................................................................................................................................................................................... 4

Raw Material ............................................................................................................................................................................ 5

Scrap & Metallics ................................................................................................................................................................... 8

Steel ............................................................................................................................................................................................ 11

Ferro Alloy ................................................................................................................................................................................... 15

Economic Indicatoprs ........................................................................................................................................................ 18

Global Price Indicators ...................................................................................................................................................... 19

Statistical Indicators ........................................................................................................................................................... 21

Currency Indicators .............................................................................................................................................................22

Conversion Spread .............................................................................................................................................................. 23

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 Indian Steel Market Scan | Jul 2021

Shutdown of small units, rising inventory to keep prices under pressure

Production

The month of July is expected to see production cuts, especially from the smaller mills. Already, 30-35% of the melting and rolling
mills have shut operations, pushed to the brink by negative margins brought on by rising raw material prices. For instance, prices of
Odisha iron ore fine are almost touching INR 10,500/t levels while lumps prices are ruling at a little below INR 14,500/t. Consequently,
the conversion spread between billets and rebar has narrowed.

Consumption

Demand for finished steel has been highly sluggish. Long products consumption has been especially hit because of the rainy
season while demand for flats is equally dull.

Exports

Overseas sales from Indian mills are likely to remain lower than in the preceding two months. Limitations of vessels and higher
freight rates will affect exports in July which may touch 1-1.25 million tonnes (mn t), compared to 1.75 mn t in May and 1.50 mn t in
June.

There were expectations that flats exports prices would hover around $970-980/t after coming down from $1,100/t levels in May.
However, exports to Vietnam, the second-largest HRC market, has dried up because Russian deals at $855-860/t have spoilt Vietnam
prospects at present. Europe was a lucrative flats market but Indian mills have exhausted their annual quota to the European Union
in just five months.

Imports

There is no scope for imports from Russia or China and Japan because these countries do not have export allocations and their
prices are high.

Prices

Indian steel prices fell by at least $18/tonne (t), as the currency depreciated to INR 74.80 to the dollar recently. Prices will remain
under pressure. Longs prices may correct by another INR 1,000-2,000/t since inventory is high. Mills would want to wait and watch.

In flats, mills recently cut domestic prices by 1,500-2,000/t on weak demand and lack of exports.

Therefore, flats prices may not correct immediately but mills are pushing their products in the domestic market because exports
have dried up.

Moreover, mills are watching how the proposed Russian export tax will impact prospects – whether volumes from Russia will
increase. That will set the direction for flat prices.

Inventory

Larger mills are holding one month’s inventory against the usual 10-15 days. For the smaller mills, their maximum inventory
holding capacity is also 10-15 days after which they need to start cutting down on production since they cannot keep capital blocked
for long.

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 Indian Steel Market Scan | Jul 2021

Snap Shot - Global Prices (USD/MT)

Commodity Particular Size,Grade Jun'21 May'21 Apr'21 Mar'21 Feb'21 Jan'21

Fines, Fe 61.5% (Australia
Fines/lumps 1 China Imports $208.67 + 7.17 + 35.14 + 45.95 + 49.2 + 45.25
Origin)
Lumps, Fe 64% (South
Fines/lumps 1 Indian Imports $250.48 + 13.98 + 43.95 + 42.33 + 63.59 + 67.9
Africa origin)
6-20 mm, Fe 65% (Brazil
Pellets 2 China Imports $296.5 + 4.5 + 42.7 + 51.3 + 65.75 + 64.75
Origin)
6-20 mm, Fe 64% (India
Pellets 2 China Imports $249.75 + 5.5 + 32.13 + 44.35 + 52.25 + 44.75
Origin)
Coking 2 Australia Exports Premium HCC $174 + 48.36 + 63.44 + 56.97 + 32.22 + 53.28

Met Coke 2 India Imports 64% CSR, China-origin $423.38 + 3.15 + 13.15 - 7.18 - 18 + 24.6
RB2 (5500 NAR), South
Non Coking 1 India Imports $104.63 + 6.73 + 14.24 + 14.85 + 22.71 + 21.84
Africa origin
Graphite Electrode 27,000
China Domestic 600mm, UHP + 2,000 + 3333 + 6,250 + 7,500 + 7,500
2
RMB/t
Shredded (Containers,
Melting Scrap 2 India Imports $527.39 + 18.5 + 64.24 + 80.02 + 92.71 + 58.94
Europe Origin)
HMS 1&2(80:20) (Bulk, US
Melting Scrap 2 Turkey Imports $502.75 + 10.25 + 72.97 + 61.8 + 85.92 + 44.57
Origin)
Shredded (Containers,
Melting Scrap 3 Pakistan Imports $526.59 + 21.59 + 62.88 + 81.64 + 93.59 + 60.27
Europe Origin)
Bangladesh Shredded (Containers, UK
Melting Scrap 2 $542 + 15.86 + 60.38 + 69.1 + 94.87 + 57.82
Imports Origin)
Ship Breaking 2 India Imports Containers $535 + 21 + 65 + 77 + 100 + 97

Billet 2 India Exports 150*150, 3SP/4SP $606.78 - 42.11 + 11.44 + 60.56 + 83.03 + 41.22

Billet 2 Russia Exports 130*130, 3SP $645.33 - 22.89 + 59.33 + 69.89 + 99.33 + 67

Billet 3 Iran Exports 130*130, 3SP $633.33 - 22.44 + 52.56 + 81.11 + 108.96 + 76.44

Sponge_iron 2 India Exports Lumps, FeM 80 $490 + 25.8 + 46.71 + 77.4 + 100.83 + 104.33

Pig Iron 2 India Exports Steel Grade $561.25 + 9.25 + 33.75 + 52.5 + 97.65 + 46.25

Pig Iron 2 Russia Exports Steel Grade $625 + 27.6 + 86.25 + 92.5 + 130.8 + 103

Hrc 2 China Exports 3-12mm, SS400 $944.2 - 73.3 + 60.45 + 197.7 + 278.2 + 290.45

Hrc 2 India Exports 2.5 mm, SAE1006 $989.2 - 38.05 + 63.45 + 232.37 + 261.8 + 213.2
South Korea
Hrc 2 1.6-2.5mm, SAE 1006 $1,075 + 32.5 + 139.25 + 291.17 + 338 + 319
Exports
2-3mm, SAE 1006 (China
Hrc 2 Vietnam Imports $979.29 - 64.91 + 58.29 + 210 + 281.79 + 272.79
Origin)
Crc 2 India Exports 0.9 mm, IS 513 Gr.O $1387.5 + 40 + 166.25 + 412.5 + 436.25 + 441.75

Crc 2 China Exports 0.90mm, SPCC $965 + 26.75 + 85.5 + 161.8 + 231.5 + 221
DX51D+z80, Width
Gp 2 China Exports 1,000-1,500 mm, thickness $988.75 -5 + 72.75 + 141.75 + 195.25 + 211
0.5-2mm
Silico Manganese 3 India Exports 65-16 $1,494 + 169 + 192.89 + 273 + 437.33 + 450.67
10-150mm, HC 60%
Ferro Chrome 2 China Import ¢92.5 /lb + 5.5 - 1.25 - 14.5 - 11.25 + 4.4
(cents/lb)
2 Lumps, Mn 37% $4.85
Manganese Ore India Imports + 0.25 + 0.25 - 0.18 + 0.05 + 0.09
(USD/dmtu) /dmtu
Ferro Manganese 2 India Exports HC 75% $1,445 + 193.75 + 243 + 294.17 + 442.5 + 448.33

Ferro Silicon 2 Bhutan Exports 70% $1,730 + 210 + 288 + 282.5 + 290 + 288

1-Daily Assessment, 2-Weekly Assessment, 3-Monthly Assessment, W-O-W:Week On Week, 1M: Change over last month, 3M: Change over last 3 months

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 Indian Steel Market Scan | Jul 2021

Snap Shot - Indian Domestic Prices (INR/MT)

Commodity Particular Size,Grade Jun'21 May'21 Apr'21 Mar'21 Feb'21 Jan'21

Fines/lumps 2 Iron Ore Index 0-10 mm, Fe 63% 9763 + 783 + 2363 + 4,350 + 4305 + 3533

Fines/lumps 3 NMDC 6-40 mm, Fe 65.5% 7,650 0 + 1,250 + 2,425 + 2,550 + 1,950

Fines/lumps 3 NMDC 0 -10 mm, Fe 64% 6,560 0 + 1,750 + 2,300 + 2,350 + 1,750

Pellets 3 Raipur 6-20 mm, Fe 63% 16056 - 538 + 1722 + 3867 + 4218 + 3672

Pellets 3 Bellary 6-20 mm, Fe 63% 13339 + 176 + 1,000 + 1,750 + 2458 + 1683
25-90 mm, Met Coke,
Met Coke 2 Ex-India (East) 27,700 + 700 - 1,050 - 2,100 - 3,050 - 2,200
Blast Furnace
Graphite Electrode
3 Ex-India 600mm, UHP 317,500 + 12,500 - 2,500 + 60833 + 77,500 + 47,500

Mill Scale 2 FoR-Kandla Fines, Fe 70/68% 7,200 + 1,090 + 1663 + 1,790 + 1138 + 300

Melting Scrap 1 Ex-Mumbai HMS(80:20) 34,400 - 1254 + 1558 + 4,728 + 6813 + 5,956

Melting Scrap 1 Ex-Alang HMS(80:20) 36,720 - 1234 + 2051 + 5,784 + 8342 + 7258

Pig Iron 1 Ex-Ludhiana Foundry Grade 44,276 + 444 - 193 + 1,512 + 4,526 + 2,994
Mix (50% Lumps, 50%
Sponge Iron 1 Ex-Raipur 31,872 + 949 + 1334 + 3,568 + 6530 + 5,616
Fines), FeM 80%, +/-1
Sponge Pellet 1 Ex-Raipur Lumps, FeM 80%, +/-1 30,542 + 752 + 982 + 3,198 + 6127 + 5,320

Billet 1 Ex-Mumbai 100x100mm, IS 2831 42,976 - 1357 - 189 + 2,176 + 5139 + 3,456

Billet 1 Ex-Raipur 100x100mm, IS 2831 42,380 + 182 + 988 + 3,694 + 7034 + 4,324
12-25mm, Induction
Rebar 1 Ex-Mumbai 46,900 - 2662 - 1631 + 632 + 3679 + 1,008
Grade, IS 1786- 500 Fe
12-25mm, Induction
Rebar 1 Ex-Delhi/NCR 48,592 - 716 + 1157 + 3,844 + 7230 + 4,932
Grade, IS 1786- 500 Fe
40*40 Angle, Commercial
Structure 1 Ex-Mumbai 48,788 - 2143 + 703 + 3,136 + 5101 + 3,252
Grade
5.5 mm, Wire Rod,
Wire Rod 1 Ex-Raipur 45,852 - 56 + 498 + 3,700 + 6,702 + 2,932
Induction grade
Hrc 2 Ex-Delhi 2.5-8mm, IS2062 65,250 + 1,000 + 5,325 + 11,645 + 13,000 + 8,625

Hrc 2 Ex-Mumbai 2.5-8mm, IS2062 67,100 + 1,100 + 4612 + 12662 + 12,725 + 10,225

Crc 2 Ex-Delhi 0.90mm, IS 513 Gr O 79,600 + 975 + 8,975 + 16163 + 16288 + 12288

Crc 2 Ex-Mumbai 0.90mm, IS 513 Gr O 83372 + 2122 + 8938 + 17976 + 17497 + 15184

Hr_plate 2 Ex-Mumbai 5-10mm, Gr E-250 67,050 + 800 + 5,790 + 13488 + 14113 + 11738

Gp 2 Ex-Mumbai 0.8mm, 120 GSM 87,250 + 1,250 + 10,450 + 21,000 + 22538 + 21,150

Silico Manganese 3 Ex-Raipur 25-150 mm, 60-14 98,105 + 9590 + 8411 + 14883 + 29,980 + 29,655

Ferro Manganese 2 Ex-Raipur HC 70% 99188 + 12063 + 13021 + 18521 + 30563 + 29604

Ferro Chrome 2 Ex-Jajpur HC 60% 95,875 + 11583 + 6,875 - 4,275 - 1,125 + 8,375

Manganese Ore 3 Ex Balaghat Lumps, Mn 37%, Fe 7.5% 14,264 0 - 751 - 36 - 36 + 645

Chrome Ore 3 Ex-Odisha OMC Lumps, Friable 48-50% 14,657 + 14,657 - 1,870 - 7,483 + 725 + 4,748

1-Daily Assessment, 2-Weekly Assessment, 3-Monthly Assessment, W-O-W:Week On Week, 1M: Change over last month, 3M: Change over last 3 months

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 Indian Steel Market Scan | July 2021

Statistics

Product Unit Quantity Latest month Quantity Previous Month % Change M-o-M Total 2020
Production
Iron Ore MnT 22.75 May'21 21.46 April'21 6.01 205.56
Pellet MnT 6.68 May'21 5.51 April'21 21.23 59.15
Pig Iron MnT 0.57 May'21 0.44 April'21 29.55 4.17
Crude Steel MnT 9.2 May'21 8.3 April'21 10.84 99.08
Export
Iron Ore MnT 2.14 June'21 3.69 May'21 -42.01 40.77
Pellet MnT 1.3 June'21 1.34 May'21 -2.99 13.08
Pig Iron MnT 0.18 June'21 0.09 May'21 100.00 0.79
Steel MnT 1.75 May'21 1.59 April'21 10.06 17.46
Ferro Alloy MnT 0.19 March'21 0.18 February'21 5.56 1.68
Import
Coking Coal MnT 4.9 May'21 4.7 April'21 4.26 52.41
Mek Coke MnT 0.19 May'21 0.31 April'21 -38.71 2.7
Scrap MnT 0.3 March'21 0.36 February'21 -16.67 4.33
Steel MnT 0.26 May'21 0.3 April'21 -13.33 3.86
Manganese Ore MnT 0.28 May'21 0.51 April'21 -45.10 3.66
Chrome Ore MnT 0.012 May'21 0.011 April'21 9.09 0.14
Source: SteelMint

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 Indian Steel Market Scan | Jul 2021

Raw Material | Iron Ore

Monthly Average Price Table

NMDC
Odisha Odisha Fines NMDC Fines
Lumps Sentiments
Lumps Index Index Chattisgarh
Chattisgarh
5-18 mm, Fe 0-10 mm, Fe 10-40 mm, Fe 0 -10 mm, Fe
Month
63%, DR Grade 63% 67%, DR CLO 64%
Apr-20 3,750 1,900 3,080 2,360
What happened
May-20 3,570 1,900 2,610 1,960

Jun-20 3,450 1,890 2,610 1,960 • SteelMint's weekly index for Odisha iron ore
fines (Fe 63%) increased by around INR 750/t
Jul-20 3,960 2,060 2,850 2,160
and that for lumps by INR 350/t during the
Aug-20 4,870 2,660 3,430 2,660 month on tighter merchant availability.
Sep-20

Oct-20
5,990

6,210
3,360

3,830
3,600

4,010
2,960

3,160
• Few eastern India based plants started
sourcing iron ore from Karnataka e-auctions.

Nov-20 7,830 5,650 4,640 3,610

What may happen

•
Dec-20 8,340 6,360 6,040 4,610
The prevailing supply constraints in the
Jan-21 8,690 6,230 6,620 4,810 Odisha's merchant iron ore market, monsoon
Feb-21 7,890 5,470 5,920 4,210 and evacuation issues faced by lessees may

Mar-21 8,110 5,400 6,070 4,260 keep prices supported.

Apr-21 9,900 7,190 7,430 4,810

• However, with mills shifting to sourcing iron ore
from Karnataka and declining sponge iron
May-21 11,670 8,940 8,880 6,560
offers, prices may face some pressure.
Jun-21 14,000 9,650 8,880 6,560

Note:
Inclusive of Royalty (15%), DMF (4.5%) & NMET (2%). GST @ 5% extra
Excluding Royalty (15%), DMF &(4.5%), NMET(2%) and GST (5%)
Domestic prices in INR/MT.

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 Indian Steel Market Scan | Jul 2021

Raw Material | Pellet

Monthly Average Price Table

PELLEX, FOB East
Ex-Durgapur Exw-Bellary Sentiments
DAP- Raipur Coast
6-20 mm, Fe 6-20 mm, Fe 6-20 mm, Fe 6-20 mm, Fe
Month
64/63% 63% 63% 64%
Apr-20 - - - 93
What happened
May-20 5,920 5,550 6,240 97

Jun-20 5,960 5,850 5,890 102 • Monthly average PELLEX prices fell by INR 50/t
in Jun’21 vis-à-vis in May’21.

•
Jul-20 6,350 6,010 5,890 102
Decline in sponge prices and slower export
Aug-20 7,830 7,840 7,660 110
bookings amid port delays as well as
Sep-20 8,790 8,140 7,840 120 quarantine measures at Chinese ports for
Oct-20 8,680 7,730 8,290 125 Indian cargoes weighed on prices.

Nov-20

Dec-20
10,740

11,800
10,230

11,210
10,370

11,790
132

165
• South India-based pellet producers have been
actively exploring the central Indian pellet
market on cost-effective landed prices.
Jan-21 12,230 11,540 11,660 192

Feb-21 11,660 10,830 10,880 180 What may happen

Mar-21

Apr-21
12,160

14,110
11,480

12,980
11,590

12,340
181

200
• Due to steady decline in sponge iron prices
amid subdued finished steel sales in the

May-21 16,150 14,490 13,160 220

domestic market, domestic pellet prices are
expected to remain under pressure.
Jun-21 16,110 15,270 13,340 227

Note:
GST @ 5% extra
Domestic prices in INR/MT.

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 Indian Steel Market Scan | Jul 2021

Raw Material | Coking Coal

Monthly Average Price Table

Non Coking, Non-Coking,
Coking Coal, Met Coke,
CNF FOB
CNF Paradip, CNF Hazira, Sentiments
Gangavaram, Kalimantan,
India India
India Indonesia
RB1 (6000
Month Premium HCC 64% CSR 4200 GAR
NAR)
Apr-20 130 274 71 32
What happened
May-20

Jun-20
122

122
272

285
66

68
30

27
• Australian premium hard coking coal (HCC)
prices increased relentlessly in Jun’21, on
Jul-20 124 284 66 24 sustained demand amid tight supply.

Aug-20 121 273 68 24

• Indonesian and South African RB1 thermal coal
prices increased by 22% and 10% m-o-m in
Sep-20 138 281 72 24
Jun’21, amid supply issues and higher demand
Oct-20 134 292 73 29
from Pakistan and China.
Nov-20 115 314 77 30
What may happen
Dec-20 114 355 99 38

Jan-21 135 399 104 47 • Australian HCC prices are anticipated to remain
supported as supply tightness is unlikely to
Feb-21 160 441 102 42
ease anytime soon.

•
Mar-21 140 431 111 -
Both Indonesian and South African coal prices
Apr-21 132 410 115 -
are expected to remain elevated on strong
May-21 153 420 120 - Chinese demand and supply crunch following

Jun-21 200 423 130 - scheduled maintenance of RBCT Port.

Note:
FOB & CNF prices in USD/MT.

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 Indian Steel Market Scan | Jul 2021

Scrap & Metallics | Domestic Melting Scrap

Monthly Average Price Table

DAP- DAP- DAP- Mandi CNF Nhava
Sentiments
Mumbai Chennai Gobindgarh Sheva
Shredded
HMS(80:20), (Containers,
Month HMS(80:20) HMS(80:20)
Old Scrap Europe
Origin)

Apr-20 - - - 264
What happened
May-20 20,620 21,040 20,910 269
• Domestic scrap prices fell by INR 1,000-5,000/t
across scrap markets whereas sponge iron
Jun-20 20,430 21,120 21,150 286
prices saw minor corrections by INR 600/t.
20,910 21,540 20,930 286

•
Jul-20
Prices declined owing to lower consumption
Aug-20 23,290 22,700 22,910 313
levels particularly in the western and northern
Sep-20 23,850 23,690 23,030 321 regions following drop in sponge iron and pig
iron prices.
Oct-20 24,210 23,010 23,600 312

Nov-20 25,500 25,100 24,730 343

What may happen

Dec-20 28,330 29,090 27,700 418 • Domestic scrap prices may see adjustments
depending upon steel production.

•
Jan-21 28,440 30,210 27,760 468
However, prices are less likely to see any major
Feb-21 27,590 26,210 27,950 428 correction beyond INR 1,000-2,000/t as supply

Mar-21 29,670 29,680 30,470 452 has improved in a few scrap markets.

Apr-21 32,840 33,110 33,200 460 • Producers may try to maintain healthy
conversion spreads and recover from earlier
May-21 35,650 34,510 35,100 501
losses in finished long steel through hot-
Jun-21 34,360 35,240 34,550 527 charging units.

Note:
Basic Prices, GST @ 18% Extra
Custom Duty extra
Domestic prices in INR/MT. FOB & CNF prices in USD/MT.

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 Indian Steel Market Scan | Jul 2021

Scrap & Metallics | Pig Iron

Monthly Average Price Table

FOB East
Exw-Durgapur Exw-Raipur Exw-Ludhiana Sentiments
Coast
Month Steel Grade Steel Grade Foundry Grade Steel Grade

Apr-20 - - - 293

May-20 23,570 23,340 29,960 298

Jun-20 23,880 24,170 29,480 306 What happened

Jul-20 24,900 24,700 31,020 320

• Pig iron prices in the domestic market plunged by
up to INR 3,000/t following weak demand owing to
Aug-20 28,420 28,480 34,040 344
falling steel prices and reduced capacity utilisation
Sep-20 28,240 27,900 33,920 363
of the furnaces as well as hot rolling mills.

•
Oct-20 28,370 27,580 35,720 356
However, supply remained healthy which forced
Nov-20 30,320 30,280 35,650 378
pig iron producers to cut prices.
Dec-20 33,950 32,840 39,190 464
What may happen
Jan-21 34,930 35,140 41,280 515

Feb-21 32,990 32,470 39,750 464 • Prices are expected to remain under pressure due
to dull domestic demand amidst plans of further
Mar-21 35,560 36,480 42,760 509
production cuts by the furnaces along with lower
Apr-21 38,610 39,090 44,470 528
export demand.
May-21 38,720 39,650 43,830 552

Jun-21 38,810 38,790 44,250 561

Note:
Basic Prices, GST @ 18% Extra
Domestic prices in INR/MT.

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 Indian Steel Market Scan | Jul 2021

Scrap & Metallics | Sponge Iron

Monthly Average Price Table

CDRI, DAP- CDRI, CNF,
PDRI, Exw- CDRI, Exw-
Durgapur, Chittagong, Sentiments
Raipur, India Bellary, India
India Bangladesh
Mix (70%
Lumps, FeM Lumps, 30% Lumps (100%), Lumps, FeM
Month
80%, +/-1 Fines), FeM FeM 80%, +/-1 80
78%, +/-1
May-20 15,610 17,050 16,230 267
What happened
Jun-20 15,570 16,790 15,670 263

Jul-20 16,490 17,700 15,950 274 • Indian sponge iron prices were under pressure
due to falling global steel prices amidst slight
Aug-20 19,580 21,070 18,940 318
production cuts by electric arc and induction
Sep-20 19,410 21,120 18,820 324 furnaces in the major markets especially in
Oct-20 20,150 21,170 19,660 314 central and eastern India.

Nov-20

Dec-20
23,930

25,440
24,610

27,200
23,240

26,300
362

402
• Thus, prices of sponge iron dropped by INR
600-2,900/tonne(t).

Jan-21 25,220 25,790 25,520 386 What may happen

Feb-21

Mar-21
24,420

27,340
25,150

27,480
23,970

25,890
389

413
• Sources believe that sponge iron prices may
remain under pressure as capacity utilisation of
Apr-21 29,560 29,440 28,780 443 the furnaces, including hot rolling mills, is likely
to remain low due to seasonally weak demand
May-21 29,790 30,360 29,810 464
and drop in margins.
Jun-21 30,500 31,830 29,420 490

Note:
Basic Prices, GST @ 18% Extra
Basic Prices, GST @ 18% Extra, (Local Freight Included @ Rs 200/MT)
Domestic prices in INR/MT. FOB & CNF prices in USD/MT.

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 Indian Steel Market Scan | Jul 2021

Steel | Billet

Monthly Average Price Table

Billet Index, DAP- Mandi DAP- FOB East
Sentiments
Exw-Raipur Gobindgarh Chennai Coast
100x100mm, 100x100mm, 100x100mm, 150*150,
Month
IS 2831 IS 2831 IS 2831 3SP/4SP
Apr-20 - - - 352

May-20 27,640 30,670 30,690 366

What happened
Jun-20

Jul-20
28,250

27,900
31,080

30,630
29,740

29,710
381

391
• Despite a fall in production, the billet makers
cut prices to ease out selling pressure.
Aug-20 29,880 32,930 30,860 409
• Prices fell sharply by INR 1,700-4,300/t.
Sep-20

Oct-20
29,580

30,540
32,840

33,410
31,290

31,570
427

419
• Also, weak export demand put pressure on
prices especially in the eastern region.
Nov-20 33,950 35,900 35,560 434
What may happen

•
Dec-20 37,170 39,370 41,040 518
Domestic billet prices are less likely to find
Jan-21 38,060 39,320 41,640 566
support as weak demand continues due to
Feb-21 35,350 38,200 37,340 524 seasonal slowdown in construction activities.
Mar-21

Apr-21
38,690

41,390
41,090

44,250
41,240

45,030
546

595
• This may keep finished steel demand poor in
the domestic market and also put pressure on
May-21 42,200 45,620 45,970 649 semi-finished prices.

Jun-21 42,320 45,350 45,240 607

Note:
Basic Prices, GST @ 18% Extra
Basic Prices, GST @ 18% Extra, (Local Freight Included @ Rs 200-250/MT)
Domestic prices in INR/MT.

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 Indian Steel Market Scan | Jul 2021

Steel | Long Steel (Rebar)

Monthly Average Price Table

Rebar, Exy- Rebar, Exw- Wire Rod, Exw- Wire Rod, Exw-
Sentiments
Mumbai Mumbai Jharkhand Durgapur
12-32mm, BF 12-25mm, 5.5-6.0mm, Wire 5.5 mm, Wire
Month Grade, IS 1786 Fe Induction Grade, Rod, BF grade, Rod, Induction
500D IS 1786- 500 Fe SAE 1008 grade
May-20 38,330 33,950 35,830 31,550
What happened
Jun-20

Jul-20
37,250

35,380
32,760

30,860
34,750

34,180
32,380

31,370
• The Indian medium-scale rebar market observed
bearish sentiments with prices falling by INR
2,500-4,000/t.
Aug-20 37,600 33,350 36,750 33,170

Sep-20 38,800 33,400 39,750 32,950 • Contraction in semi-finished steel prices happened in
the same proportion amid inadequate construction
Oct-20 38,800 35,420 40,900 33,700 activities as high inventories saddled producers

Nov-20 43,250 38,830 43,680 37,690 resulting in price correction.

Dec-20 50,250 44,000 49,350 42,100 What may happen

Jan-21 54,540 45,550 54,140 43,520

• IF-grade rebar market may weigh down to a certain
level due to seasonal effects despite variations in
Feb-21 50,180 42,880 48,280 39,480
production utilisation adjustments across regions.

•
Mar-21 49,380 45,930 45,900 42,440
Conversion spread is likely to remain under pressure.

•
Apr-21 52,950 48,190 49,880 45,630
Few large-scale manufacturers have slashed their
May-21 54,660 49,220 51,700 47,100 offers by up to INR 2,000/t across regions in early-
Jun-21 52,260 46,500 50,780 45,470 Jul'21.

Note:
Large Producers, Basic Prices, GST @ 18% Extra & Loading Extra
Basic Prices, GST @ 18% Extra & Loading Extra
Domestic prices in INR/MT.

Copyright@ 2009-2021 Pg | 12
 Indian Steel Market Scan | Jul 2021

Steel | Finish Flat (HRC)

Monthly Average Price Table

FOB East
Exy-Mumbai Exy-Chennai Exy-Delhi Sentiments
Coast
2.5-8mm, 2.5-8mm, 2.5-8mm, 2.5 mm,
Month
IS2062 IS2062 IS2062 SAE1006
Apr-20 - - - 405

May-20 37,220 38,880 37,580 407

Jun-20 35,940 37,690 36,200 437 What happened

Jul-20 36,510 38,000 36,480 460 • Indian mills increased list prices by around INR
4,000/t to reduce the gap between domestic
Aug-20 39,750 40,140 40,000 503
and international prices.
Sep-20 41,230 41,960 41,850 522

Oct-20 42,810 44,000 44,150 517 • Thus, there was a wide disparity between trade
and market prices due to sluggish demand.

•
Nov-20 46,000 45,810 46,380 559
Indian HRC export offers dropped by almost
Dec-20 52,200 53,100 53,400 684
$100/t m-o-m FoB east coast.
Jan-21 56,880 58,250 56,630 776
What may happen
Feb-21 54,380 55,250 52,250 727

Mar-21 54,440 54,330 53,610 757 • Indian mills may correct HRC prices by around
INR 2,000/t in the form of rebates and
Apr-21 62,490 62,730 59,930 926
discounts to entice buying interest.
May-21 66,000 70,110 64,250 1,027

Jun-21 67,000 68,990 64,830 989

Note:
Basic Prices, GST @ 18% extra
Domestic prices in INR/MT.

Copyright@ 2009-2021 Pg | 13
 Indian Steel Market Scan | Jul 2021

Steel | Finish Flat (CRC)

Monthly Average Price Table

CRC, Exy- CRC, Exy- GP, Exy- HR Plate,
Sentiments
Mumbai Delhi Mumbai Exy-Delhi
0.90mm, IS 0.90mm, IS 0.8mm, 120 5-10mm,
Month
513 Gr O 513 Gr O GSM IS2062
May-20 43,310 43,350 47,130 37,250
What happened

•
Jun-20 41,690 41,500 47,440 35,880
Mills hiked list prices by up to INR 4,000-5,000/t
Jul-20 41,820 41,600 46,500 36,400
to reduce the gap between global and
Aug-20 45,280 45,190 48,050 39,750 domestic prices.
Sep-20

Oct-20
49,150

53,310
50,550

53,500
50,400

51,880
41,900

44,500
• Spread between HRCs and CRCs touched an
all-time high of INR 16,500/t, following healthy
Nov-20 54,880 54,380 53,890 46,190 demand in the overseas market for CRCs.

Dec-20 61,050 62,050 60,200 53,700

• Major auto companies reported a decline in
sales due to a spike in Covid-19 cases and
Jan-21 68,190 67,310 66,100 56,130
lockdowns.
Feb-21 65,880 63,310 64,710 52,500

Mar-21 65,400 63,440 66,250 53,940 What may happen

Apr-21

May-21
74,430

81,250
70,630

78,630
76,800

86,000
59,900

64,250
• Indian mills will offer rebates on CRCs by
around INR 1,750-2,000/t on subdued domestic
demand.
Jun-21 83,230 79,300 87,250 65,090

Note:
Basic Prices, GST @ 18% extra
Domestic prices in INR/MT.

Copyright@ 2009-2021 Pg | 14
 Indian Steel Market Scan | Jul 2021

Ferro Alloy | Manganese Ore

Monthly Average Price Table

Manganese Ore, Exm-MOIL CNF East Coast Sentiments

Month Lumps, Mn 37%, Fe 7.5% Lumps, Mn 37% (USD/dmtu)

Apr-20 11,010 5.41

What happened
May-20

Jun-20
17,410

15,670
6.47

4.97
• Manganese Ore India Limited (MOIL), India's
largest manganese ore miner, rolled over prices
for all grades for Jun‘21.
Jul-20 13,320 4.12

Aug-20 11,320 4.15 • Despite soaring silico manganese prices,

manganese ore prices remained stable to
Sep-20 12,450 4.35
maintain price parity.
Oct-20

Nov-20
13,390

12,380
4.18

3.91
• Meanwhile, in the international market, prices
dropped due to lower Chinese demand.

Dec-20 12,380 4.03 What may happen

Jan-21

Feb-21
13,620

14,300
4.76

4.80
• Manganese ore prices in the international
market may increase significantly amidst
increasing freight costs and higher demand
Mar-21 14,300 5.03
from the Chinese market.

•
Apr-21 15,020 4.60
Meanwhile, in the domestic market, MOIL also
May-21 14,260 4.60 increased prices for Jul’21 deliveries by 7.5% m-
Jun-21 14,260 4.85 o-m.

Note:
Basic Price, Exclusive of MP Tax (5%), Royalty (5%), DMF(30% on Royalty), NMET (2% on Royalty) and GST(5%)
Domestic prices in INR/MT. FOB & CNF prices in USD/MT.

Copyright@ 2009-2021 Pg | 15
 Indian Steel Market Scan | Jul 2021

Ferro Alloy | Silico Manganese

Monthly Average Price Table

Silico Silico
Silico Ferro
Manganese, Manganese,
Manganese, Manganese, Sentiments
Exw-Durgapur, FOB
Exw-Raipur Exw-Durgapur
India Vizag/Haldia
Month 60-14 10-50 MM, 60-14 HC 70% 65-16

May-20 66,130 66,030 67,000 988

Jun-20 60,460 61,130 62,750 912

Jul-20 61,200 60,450 60,130 870 What happened

Aug-20 61,360 61,780 60,880 890 • In Jun‘21, prices of silico manganese rose on
increased European demand and supply shortage in
Sep-20 61,000 61,550 62,380 898
the domestic market.
Oct-20 59,080 59,780 59,700 877

Nov-20 59,310 59,930 58,380 858 • However, prices started correcting by the end of the
month as smaller steel mills reduced production due
Dec-20 64,900 65,280 64,200 954
to higher raw material prices.
Jan-21 68,450 69,050 69,250 1,043
What may happen
Feb-21 68,130 68,060 69,250 1,057

Mar-21 83,220 83,390 80,420 1,221 • In July, the domestic market may remain range
bound and prices may pick up again as steel
Apr-21 89,690 89,140 85,880 1,301
production returns to normal levels.
May-21 88,520 89,230 88,000 1,325

Jun-21 98,140 98,260 99,030 1,496

Note:
Excluding GST
Domestic prices in INR/MT.

Copyright@ 2009-2021 Pg | 16
 Indian Steel Market Scan | Jul 2021

Ferro Alloy | Ferro Chrome

Monthly Average Price Table

Cr Ore, E- Fe Si, Exw-
Fe Cr, Exw- Fe Cr, CNF
auction, Phuentsholing, Sentiments
Jajpur, India Tianjin, China
Odisha, India Bhutan
10-150mm, HC
Month HC 60% Friable 52-54% HC 70%
60% (cents/lb)
Apr-20 - - 7,910 -

May-20 62,750 66 8,580 85,000

Jun-20 65,380 69 9,310 77,250

Jul-20 61,800 67 - 72,570 What happened

Aug-20

Sep-20
62,750

72,000
66

68
-

-
75,080

82,000
• Ferro chrome prices increased amidst supply
shortage in the domestic market.
Oct-20

Nov-20
71,250

67,130
69

69
14,480

12,080
80,000

78,500
• There was a severe supply crunch in the Chinese
market, which further boosted sentiments for the

Dec-20 68,200 70 9,230 95,630 sellers.

Jan-21 87,500 88 10,950 107,800 What may happen

Feb-21

Mar-21
97,000

100,150
104

107
15,200

23,990
97,000

98,500
• Indian ferro chrome prices are expected to remain
stable as supply issues persist in the market.

Apr-21 89,000 94 17,650 104,360

May-21 84,290 87 - 118,470

Jun-21 97,500 94 15,730 128,880

Note:
Excluding GST
Basic. Taxes Extra
Domestic prices in INR/MT. FOB & CNF prices in USD/MT.

Copyright@ 2009-2021 Pg | 17
 Indian Steel Market Scan | Jul 2021

Economic Indicators

Purchasing Manufacturing Index, Source- Govt of India

Source - SIAM

Copyright@ 2009-2021 Pg | 18
 Indian Steel Market Scan | Jul 2021

Global Price Indicators

Copyright@ 2009-2021 Pg | 19
 Indian Steel Market Scan | Jul 2021

Global Price Indicators

Copyright@ 2009-2021 Pg | 20
 Indian Steel Market Scan | Jul 2021

Statistical Indicators

Copyright@ 2009-2021 Pg | 21
 Indian Steel Market Scan | Jul 2021

Currency Indicators (USD)

Copyright@ 2009-2021 Pg | 22
 Indian Steel Market Scan | July 2021

Conversion spreads

Pellet to Sponge Iron (P-DRI)

Bellary
Raipur Year 21 Year 20
18,000
Year 21 Year 20
15,850 15,900
16,000 15,150 16,000 15,750
15,400 13,650
15,000 13,550
14,000

Prices in INR/MT
14,500 12,900
14,000 12,650
Prices in INR/MT

12,750 13,300 12,000

13,000
11,950
12,000 10,000 11,400
12,350 10,100 10,000 9,400
11,000 9,500
11,800 8,000
10,000 11,100
10,600 9,550
9,950 6,000
9,000
Jan Feb Mar Apr May June
8,000
Jan Feb Mar Apr May June
Iron ore to C-DRI
Durgapur
Year 21 Year 20
Rourkela Iron ore Lumps to Sponge Iron
Year 21 Year 20
16,000
14,750 15,550
15,000 20,000 18,750
13,100 14,650 19,000
Prices in INR/MT

14,000 14,050 18,000 16,450 18,150

12,950 16,550
13,000 16,800
Prices in INR/MT

16,000
12,000 12,750
11,000 12,450 14,000 14,950
10,400
10,000 10,950 10,300 9,900 14,200 13,000 12,550
12,000 12,600 12,350
9,000
10,000
8,000
Jan Feb Mar Apr May June 8,000
Jan Feb Mar Apr May June

Sponge Iron (P-DRI) to Billet

Raipur Durgapur
Year 21 Year 20 Year 21 Year 20

13,000 15,000
12,750 12,700
12,500 12,450 14,300
14,000
12,000 13,450
11,400 12,850
11,800 11,550 11,700 13,000 13,350
11,500
Prices in INR/MT

10,900 11,700 12,550

11,000 12,200
Prices in INR/MT

12,000
10,500
10,000 10,350 11,000 11,150
10,450 9,650 10,900
9,500 9,900 10,000 10,700 10,200
9,000 10,250
8,500 9,000
8,000 8,000
Jan Feb Mar Apr May June Jan Feb Mar Apr May June

C-DRI to Billet
Hyderabad
Year 21 Year 20 Rourkela
15,000 Year 21 Year 20
14,250
14,000 12,600 12,500
13,550 13,700 12,250
14,000 12,000 12,050
13,000 12,800
Prices in INR/MT

11,500 11,050 11,750 11,500

12,000 12,550
Prices in INR/MT

11,900 11,000 10,550

11,000 11,600 11,000
11,750 11,150 11,200 10,700
10,500
10,000
10,000
9,000 9,700
9,500 9,900 9,800 9,800
8,000
Jan Feb Mar Apr May June 9,000
8,500
8,000
Jan Feb Mar Apr May June

Copyright@ 2009-2021 Pg | 23
 Indian Steel Market Scan | July 2021

Scrap to Billet

Mandi Gobindgarh Mumbai

Scrap to Billet YR 21 Scrap to Billet YR 20 Scrap to Billet YR 21 Scrap to Billet YR 20

10,500 12,000 10,250 11,200

11,000 11,050
10,000 9,600 9,600 9,950 10,400

Prices in INR/MT
Prices in INR/MT

9,500 9,400 9,250 9,200 10,000

9,000 9,000 8,700 8,550
8,800 8,000
8,500 9,600 8,750 9,150 9,200 7,900
8,000 8,300 8,450 7,000
6,000 7,950 6,900
7,500 6,850 6,300
7,000 5,000
6,500 4,000
6,000 Jan Feb Mar Apr May June
Jan Feb Mar Apr May June

Chennai Jalna
Scrap to Billet YR 21 Scrap to Billet YR 20 Scrap to Billet YR 21 Scrap to Billet YR 20

13,000
11,400 11,900 12,000
12,000 11,500 11,450 10,900 10,850 11,350
Prices in INR/MT

11,150 11,000 10,350

11,000
Prices in INR/MT

10,050 10,000
10,000 8,500 9,100
9,000 8,900
9,000
9,150 8,000 8,650
8,000 8,750 8,850 8,650 9,000
8,400 8,200 7,000 7,900
7,000 7,200 6,800
6,000
6,000
Jan Feb Mar Apr May June 5,000
4,000
Jan Feb Mar Apr May June

Durgapur Raipur
Scrap to Billet 21 Scrap to Billet 20 Scrap to Billet 21 Scrap to Billet 20

8,000 8,000 7,450

7,350 7,000 6,850 7,150
7,000 6,850 7,000 7,000
6,350 6,300
Prices in INR/MT

Prices in INR/MT

6,000 6,000 5,500 5,750

5,450 5,000 5,950
5,000 4,850 5,400
5,450 5,000 5,300 4,350
4,750 4,600 4,650 4,000 4,650 4,400
4,000
3,000 3,000
2,000
2,000 Jan Feb Mar Apr May June
Jan Feb Mar Apr May June

Ahmedabad
Scrap to Billet YR 21 Scrap to Billet YR 20

11,000 10,600
10,000 9,800 9,650
Prices in INR/MT

9,000 8,600 8,000 8,650

8,000 7,750
7,000 8,150
6,000 7,600 6,800
6,750 6,400
5,000
4,000
Jan Feb Mar Apr May June

Copyright@ 2009-2021 Pg | 24
 Indian Steel Market Scan | July 2021

Billet (IF Based) to Re-bar

Mandi Gobindgarh Mumbai

Billet to Re-bar YR 21 Billet to Re-bar YR 20 Billet to Re-bar YR 21 Billet to Re-bar YR 20

6,000 6,500
6,350
6,000
5,650
5,500 5,350 5,400 5,300

Prices in INR/MT
5,240 5,500
Prices in INR/MT

5,200 5,000 5,250

5,000 4,500 4,700
4,500 4,850
4,600 4,500 4,600
4,500 4,300 4,000
4,250 4,650 4,100 3,950
4,500 3,950
4,400 3,500
4,000 4,150 4,150
3,000
Jan Feb Mar Apr May June
3,500
Jan Feb Mar Apr May June

Chennai Raipur
Billet to Re-bar YR 21 Billet to Re-bar YR 20
Billet to Re-bar YR 21 Billet to Re-bar YR 20
6,500 6,500
6,250 6,250
6,000 5,950 6,000
5,700
5,500
Prices in INR/MT

Prices in INR/MT
5,500 5,000
4,850 5,250 4,550
5,100 5,550 4,500 4,200 4,400 4,550
5,000 4,200
4,600 4,000 3,950
4,800 3,900 4,150
4,500 3,500 3,700 3,850 3,950
4,350 4,500
3,000
4,000 2,500
3,500 3,700 2,000
Jan Feb Mar Apr May June
3,000
Jan Feb Mar Apr May June

Durgapur Rourkela
Billet to Re-bar YR 21 Billet to Re-bar YR 20 Billet to Re-bar YR 21 Billet to Re-bar YR 20
5,500
7,000
5,200 6,350
5,000 4,900 5,050 6,000
Prices in INR/MT

Prices in INR/MT

4,700 4,800 4,850 4,800

4,700 5,000 4,700 4,700 4,750 5,450
4,500 4,550
4,000 4,550 4,750 5,000 4,000
4,400
4,000 4,050 4,000 3,000
3,950 4,050
3,650 2,000
3,500
1,000
3,000
Jan Feb Mar Apr May June -
Jan Feb Mar Apr May June

Ahmedabad Jalna
Billet to Re-bar YR 21 Billet to Re-bar YR 20 Billet to Re-bar YR 21 Billet to Re-bar YR 20
7,500
8,500
7,200
7,000 8,000 8,050
Prices in INR/MT

6,500 6,250 6,400 7,500

Prices in INR/MT

6,000 5,650 5,900 7,000

5,900 5,800 6,100 6,800
5,600 5,700 6,500
5,500 6,250
5,350 6,000 5,900
5,000 5,100
5,500 5,950 5,950 5,650
4,500
4,200 5,000 4,900
4,000 4,750
Jan Feb Mar Apr May June 4,500 4,400
4,200
4,000
Jan Feb Mar Apr May June
Hyderabad
Billet to Re-bar YR 21 Billet to Re-bar YR 20

6,500
6,000 5,700 5,950
5,850
5,250
5,500 4,850
Prices in INR/MT

5,000 4,850
4,500 5,000 4,650
4,500
4,000 4,550
3,500 3,950
3,650
3,000
2,500
2,000
Jan Feb Mar Apr May June

Copyright@ 2009-2021 Pg | 25
DATA
IS OUR
DNA

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