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steelmint.com

Nov 2014

i RAW MATERIALS

Iron Ore

Pellets

Scrap

Coal

ii SEMI FINISHED STEEL

Sponge Iron

Pig Iron

Billet

iii FERRO- ALLOYS

Silico- Manganese

Ferro- Chrome

iv FINISHED STEEL

Rebars

HR Coils

iv CURRENCY iv STATISTICS

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70

80

90

100

110

120

Prices

inUSD/MTCNFChina

China Iron Ore Fines (Fe 62)

Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14

2,500

3,000

3,500

4,000

4,500

5,000

Bas

icPricesin

INR/MT

NMDC Iron Ore Prices

Fines (Fe 65) Lumps 6-40 mm (Fe 65)

Apr-14 May-14 June-14 July-14 Aug-14 Sep-14 Oct-4

6,000

6,700

7,400

8,100

8,800

9,500

Prices

inINR/MT

Iron Pellet Prices (Fe 63)


23,000

23,700

24,400

25,100

25,800

26,500

27,200

Prices

inINR/MT

Domestic Scrap (HMS - 80:20) Prices

The average price for Fe 62% spot

Iron ore fines in Oct'14 was USD80/MT CNF China, which had fallenby USD 2/MT in contrast to Sep'14

Cheaper global prices had increasedIndian Iron ore imports to 2.2 MnTin Oct'14 against 0.8 MnT in Sep'14

China's spot Iron ore fines prices are

expected to remain weak and mayincrease India's Iron ore imports to

9-11 MnT in FY15

Basic prices excluding royalty and taxes

NMDC had reduced lump prices byupto INR 200/MT and kept finesprices unchanged for Nov'14

During Q2 FY15, NMDC's Iron oreproduction touched 6.4 MnT,

registering a growth of 9 % Y-o-Y(5.9 MnT)

NMDC may increase fines prices on

the backdrop of increasing scarcity in

domestic market

Decision on Jharkhand mining issue

will take time owing to up-coming

state elections

Imports may go up, especially by Tata

Steel

Albeit, consistent scarcity of fines inthe domestic market, economicalimport offers restricted IndianPellet manufacturers to raise prices

Continued scarcity and increasing fines

prices will hit Pellet production. Pellet

prices may increase further

Trading volume of domestic Scrapremain affected on account ofelections & festive season

Prices in Mumbai had declined byINR 1,500-1,900/MT in Oct'14 dueto poor demand of semi finish &finished steel products

Finished steel demand is expected toremain moderate in Nov'14 due to

falling conversion spread. However,

seasonal demand can be seen in last

week of the month

Prices are loaded into wagons at Barbil

Prices: Ex Mumbai

Basic prices excluding Duty & Taxes1

Source: SteelMint Research


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315

330

345

360

375

390

405

Prices

inUSD/MT

Turkey Imports Scrap (HMS 80:20) PricesScrap prices witnessed steep fall ofUSD 40/MT owing to toughcompetition from Chinese steel in

export market and large import ofChinese semi finish products byTurkish mills

Experts believe after witnessing sharp

fall in Scrap prices in a month's time, it

is difficult to project what will be the

bottom level. Though, consistency inprice in last week of October is a signal

of price stability for the month of

November

International Coking coal prices hadfallen slightly in Oct'14 owing toimport duty announced by theChinese government

There is steady demand in theglobal market and Chinese domesticmarket

Price hike is anticipated in Nov'14

because of expected rise in demand

from China

Non-coking coal prices remainunaltered during Oct'14 on account

of low buying interest from theglobal market

Few Indonesian traders hadincreased their offers for 4200 GARcoal but there was no positiveresponse from Indian buyers

International prices are expected to

increase in Nov'14

Demand in India is likely to rise

because of coal blocks cancellation

and lack of domestic availability.

Currently, strong inquiries are comingfrom Indian manufacturers viewing

December bookings

South African Steam coal offers

have fallen slightly by USD 2-3/MT

in Oct14 on the backdrop of lowbuying interest in the global market.Offers were largely in the range ofUSD 72-74/MT CIF India

Prices are expected to increase in

coming month because of expectedrise in demand from domestic & global

markets. Prices are likely to be in range

of USD 74-76/MT CIF India


109

110

111

112

113

114

115

Prices

inUSD/MT

FOB

Australia Hard Coking Coal Prices


35.0

36.5

38.0

39.5

41.0

PricesinUSD/MTFOB

Indonesia 4200 GAR Prices


54.0

57.0

60.0

63.0

66.0

69.0

PricesinUSD/MT

South African RB - 2 (5500 NAR)

2


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19,000

19,500

20,000

20,500

21,000

21,500

22,000

22,500

23,000

23,500

24,000

PricesinINR/MT

Sponge Iron(C-DRI) & Pellet Sponge (P-DRI)

Sp onge Iron (C- DRI ) P el le t S po nge ( P-DRI)

Domestic Pig iron prices fell by INR

300-400/MT in Oct'14. Prices arenot finding support despite tightsupply of Iron ore in the domesticmarket

Steep fall in scrap prices additing onto fall in prices of pig iron

Dull demand in the global marketadded with poor response inprevious export tender madeRINL/NINL to postponed its exporttender

Domestic Pig iron prices are likely to

correct slightly in Nov'14

Pig iron export market does not seems

to improve for another few months, as

continous fall in global Scrap prices

add with cheaper Chinese Billet

offered internationally is hampering

Pig iron export market

Sponge prices had correctedmarginally by INR 500-800/MT inOct14. While, MS Ingot/Billetprices fell by INR 1,000-1,500/MT.Limited sellers and scarcity of Ironore & coal have supported theSponge prices

Indian Sponge iron prices are likely to

sustain at INR 19,500-21,500/MT. It

is also expected that prices will

fluctuate by INR 500/MT in Nov'14

Prices-Ex Raipur, Steel GradeDomestic: Basic prices excluding Duty & TaxesExport prices: FoB East Coast of India

Amid bearish sales in the localmarket and increase in import offinished steel as well as rawmaterials (Iron ore & Scrap) hadcorrected domestic MS Billet pricesby around INR 1,000-1,500/MT inOct14. Sources mentioned thatsales & trade volume remains thinowing to liquidity crunch

As per market participants, MS Billet

prices are likely to rise by around INR

500/MT with an expectation thatfinished steel demand will improve

from this month as festival season has

also ended

Prices: Ex-Raipur

Basic prices excluding Duty and Taxes

Prices: Ex-Raipur


ndia Export: FOB India

28,100

29,000

29,900

30,800

31,700

32,600

33,500

Prices

inINR/MT

Billet Prices


490

505

520

535

550

565

Export

Prices

inUSD/MT

Billet Export Prices

3


365

370

375

380

385

390

395

400

23,500

24,200

24,900

25,600

26,300

27,000

27,700


Expor

tPrices

inUSD/MT

Domest

icPrices

inINR/MT

Domestic Pig Iron Prices & Export Prices

Domestc Pr ic es i n INR /M T Ex po rts Pr ic es i n US D/M T

Falling Iron ore and Scrap prices inthe global market have boundedsuppliers to reduce their offers

CIS countries, which are one of themajor suppliers of Billet to Asian

countries, are offering Billet at

around USD 470/MT; down by USD

20/MT from last month

Scrap and Iron ore prices are likely to

remain under pressure due to slow

recovery in global steel demand. Prices

may see some further correction Billet

export prices


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Prices remain relatively unchanged

Demand was low, hampered bymany hoildays

Prices will remain capped unless

finished steel demand rises

There was little deals to China

Chinese Stainless Steel mills

rollover purchase prices

As production comes down in winter

months in China, there could be

renewed demand for Indian Ferro

Chrome

Secondary Rebar prices havereduced by INR 1,000-1,500/MT inOct14 across India owing to fall inIngot prices in the same range

Primary Rebar manufacturers also

reduced prices by INR1,000-2,000/MT owing to lessbuying from projects

Lower demand and rising cheaperimported Rebar especially fromChina has hurt the domestic steelmanufacturers

Market sources expect minor price

correction from the Primary Rebar

producers in November depending on

the market situation

Secondary Rebar prices may increase

slightly in the current month owing to

shortage of Iron-ore in the market

HRC trading prices fell by INR500-700/MT in last week of Oct'14on account of poor sales

Imported offers for Chinese HRCfell below USD 500/MT CFR India

Prices are likely to correct further as

there is no improvement in demand

Traders expect minor improvement in

sales for Nov'14 as compared to

Oct'14

Prices: Ex Durgapur


Prices: Ex Mumbai


Delhi& NCR

Prices include Excise Duty and VAT extra


54,000

55,300

56,600

57,900

59,200

60,500

PricesinINR/MT

Silico Manganese 60/14 Prices

82.0

82.5

83.0

83.5

84.0

84.5

85.0

85.5

PricesinCents/LbCNFChina

China Ferro Chrome Prices (HC 60%)


33,000

34,000

35,000

36,000

37,000

38,000

Prices

inINR/MT

Re - bar 12 mm Prices


41900

42200

42500

42800

43100

43400

PricesinINR/MT

HRC -2.5 mm Prices

4


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58.00

59.00

60.00

61.00

62.00

INRperU

SD

Exchange rate (INR vs USD)

Iron ore

Coal (CIL)

Manganese Ore

Chrome Ore

Crude Steel

Iron Ore

Iron Ore Pellet

Mill Scale

Pig Iron

Flat Steel

Coal

Scrap

Iron ore

Manganese OreChrome ore

Flat Steel

Producton

Export

Import

Qty in MnT (Million Tons)

Source: RBI

5


Indian Statstcs (Producton/Export/Import)

Apr'14 May'14 Jun'14 Jul'14 Aug'14 Sep'14 Oct'14

- 13.90 11.70 12.60 10.80 - -

37.51 36.27 34.54 33.01 34.54 34.88 40.20

- 0.23 0.22 0.19 0.56 - -

- 0.26 0.24 0.11 0.07 - -

6.80 6.90 6.70 6.90 7.02 6.8 -

0.95 0.67 0.33 0.22 0.39 0.25 0.11

0.11 0.05 Nil Nil 0.05 Nil 0.10

0.06 0.08 0.04 - 0.02 0.07 -

0.04 0.09 0.01 0.05 0.08 0.06 Nil

0.48 0.46 0.43 0.38 0.41 0.45 0.38

17.90 19.20 18.80 18.90 18.01 18.80 18.30

0.39 0.45 0.45 0.46 0.47 0.48 0.37

0.04 Nil 0.04 0.95 1.01 0.80 2.20

0.22 0.29 0.20 0.35 0.33 0.33 0.200.03 0.01 0.01 0.02 0.02 0.04 -

0.42 0.45 0.50 0.38 0.56 0.55 0.66

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Raipur:

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Raipur (C.G) - 492 007 India

Tel: +91 9575100530

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