Semi finished and finished long report 2014

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Information about Semi finished and finished long report 2014
Business & Mgmt

Published on March 11, 2014

Author: steelmint

Source: slideshare.net

Description

This month's SteelMint report include:
# 3- months price trend of majour Indian Re-bar markets
# Re-bar Market Review of India
# March Overview
# Market Live in March Major change

Stee int TM Steeling is Basic l

I n February, MS Ingot/Billet sale was dull in the local market. However, buying from other states supports Raipur, Durgapur & Rourkela market. Mandi Gobindgarh was the main buyer of the material (Ingot/Billet) from these cities. Manufacturers believe that if demand from other states falls then there is an expectation of production cut in Ingot/Billet and rolling mills. 1. Increased availability of Sponge iron pulls down its prices in markets such as Durgapur, Raipur & Rourkela that supports low MS Ingot/Billet prices. As a result, Finished Steel manufacturers from nearby states prefer to purchase material majorly from Raipur, a big producer of semi finish & finished products. 2. Lower electricity charges in Central & Eastern India (compared to Northern & Western India) is also one of the reasons behind low semi finish & finished prices. 3. Low demand within the state, high production and availability of immediate payment deals are www.steelmint.com 1 Stee int TM Steeling is Basic lSemi Finish & Finished Steel Review SteelMint Buying from North India supports Central & Eastern Market Place Raipur Rourkela Durgapur Prices (Ex-Plant) 30,300 29,800 30,300 CST 1.02 1.02 1.02 Freight 2,900 3,300 2,600 Delivered Mandi 33,806 33,690 33,500 Mandi Prices 34,500 34,500 34,500 Difference 694 810 1,000 st Prices as on 1 Mar, 2014 in INR/MT Table 2: Movement of MS Ingot to Mandi Gobindgarh (Punjab) shifting seller’s focus on other states to sell their material. 4. Branding plays a bigger role in finish long demand rather than the semi finish products. For an example in North India, it is easier to sell Jyoti TMT (Punjab’s leading brand) at about INR 47,500/MT (including all taxes) than GK TMT (Central India leading Brand) if to be calculated FOR Mandi would be INR 41,000-42,000/MT.(12 MM including all taxes) 5. Availability of Ingot/Billet remains low at Mandi as demand from finished steel manufacturers remains high. Table 3: Semi Finish & Re-bar Monthly Average Price Movement City Month Jan'14 Feb'14 Change Jan'14 Feb'14 Change Jan'14 Feb'14 Change Jan'14 Mandi 22,700 23,400 700 33,000 34,400 1,400 33,300 34,600 1,300 36,900 Mumbai - - - 32,400 32,300 100 32,600 32,500 100 35,750 Raipur 20,300 21,300 1,000 29,500 30,100 600 30,000 30,600 600 33,400 Durgapur 20,700 20,300 400 30,000 30,200 200 30,400 30,600 200 33,150 Hyderabad - - - 31,600 31,900 300 31,800 32,200 400 35,300 Note:- All Basic Prices in INR/MT. Re-bar (12 mm)MS BilletMS IngotSponge Iron Feb'14 38,200 35,700 33,900 33,450 35,800 Change 1,300 500 300 500 50 February, 2014 Table 1: Monthly Snapshot Par cular Place Price W-o-W M-o-M Scrap (EC) Mandi 26,900 400 600 Imported Scrap* Mumbai USD 370 0 0 Sponge Iron# Raipur 20,700 400 900 MS Ingot Raipur 29,750 350 600 MS Billet Raipur 30,250 300 650 Re-bar (12 mm) Raipur 33,500 100 700 USD 1 61.23 0.54 1.06 * HMS (1&2), # FeM80, Mix Prices as on 08 Mar'14 Change

I ndia has a total installed capacity of around 9.1 MnT pa for Primary Bars & Rods. Out of which, companies such as Tata Steel, JSPL, SAIL, RINL & JSW have installed capacity of 3 MnT, 1.8 MnT, 1.7 MnT, 1.6 MnT and 1 MnT per annum respectively. For Secondary TMT, India’s total installed capacity is around 31 MnT pa. Uttar Pradesh, Maharashtra & Chhattisgarh are the major TMT producing states, having an installed capacity of over 12 MnT collectively. Indian Primary producers had increased TMT offers by INR 500-1,000/MT for the last month. Now again, they have increased offers by INR 500-1,000/MT for the current month (Mar’14). Chhattisgarh, one of the major supplying states in the country sells TMT to around 6 other nearby states. The state has 30-35 rolling mills for TMT production. Monnet Group (Raigarh) and Shri Bajrang Power & Ispat (Raipur) are the major producers with installed capacity of 0.7 MnT and 0.4 MnT per annum respectively. Ingot & TMT offers are also stable in Chhattisgarh owing to constant buying volume. A TMT trader based at Raipur said, “Lok Sabha Elections and Hindu festival ‘Holi’ are the two major factors that may affect steel market in near future. Despite of dull demand in the finish market in last 1- 2 months, TMT prices are not much falling down. This indicates that there are no major changes in finish long market and it may sustain at this level with minor fluctuations.” www.steelmint.com 2 Stee int TM Steeling is Basic l February, 2014 Semi Finish & Finished Steel Review SteelMint Major TMT Supplying States Table 4: Re-bar Prices 12 mm (Secondary) City Jan'14 Feb'14 M-o-M Change Mumbai 42,200 42,100 100 Raipur 38,600 39,300 700 Durgapur 39,100 39,500 400 Chennai 43,300 43,300 0 Hyderabad 41,600 42,300 700 Mandi 43,500 44,100 600 Note: Inclusive all taxes. Loading & Frieght Extra Table 5: Re-Bar Prices 12 MM (Primary) City Jan'14 Feb'14 M-o-M Change Mumbai 45,100 46,200 1,100 Chennai 46,950 47,500 550 Hyderabad 45,400 46,600 1,200 Delhi 45,650 46,500 850 Note: Inclusive all taxes. Loading & Frieght Extra Table 6: Wire Rod Prices Inclusive of all taxes for February'14 (Average) Par cular Raipur M-o-M Change Durgapur M-o-M Change Wire Rod (5.5MM) 41,500 600 41,300 1,100 HB Wire (12 Gauge) 43,700 600 43,700 1,100 Binding Wire (20 Gauge) 47,800 700 49,400 1,300 West Bengal is the second major supplier with an installed capacity of 2.6 MnT pa of TMT. It also supplies TMT to about 6 other nearby states. The state has four major TMT producers namely SRMB Srijan, Concast Ispat, Shyam Steel Industries and VSP Udyog, having installed capacity of 0.4 MnT, 0.38 MnT, 0.3 MnT and 0.26 MnT per annum respectively. Demand for finish long is average in Durgapur. In a conversation with a trader based at Durgapur said, “Finish long demand was good but from last 2-3 days local buying has reduced; demand from nearby states has remained.”

www.steelmint.com 3 Stee int TM Steeling is Basic l February, 2014 Semi Finish & Finished Steel Review SteelMint 26000 27000 28000 29000 30000 31000 32000 33000 34000 35000 36000 02/12/13 09/12/13 16/12/13 23/12/13 30/12/13 06/01/14 13/01/14 20/01/14 27/01/14 03/02/14 10/02/14 17/02/14 24/02/14 BasicPricesinINR/MT 3 Months MS Ingot Price Movement Mandi Gobindgarh Raipur Mumbai Hyderabad Bellary Durgapur Raipur Rourkela 27000 28000 29000 30000 31000 32000 33000 34000 35000 02/12/13 09/12/13 16/12/13 23/12/13 30/12/13 06/01/14 13/01/14 20/01/14 27/01/14 03/02/14 10/02/14 17/02/14 24/02/14 BasicPricesinINR/MT BasicPricesinINR/MT 3 Months Billet Price Movement Raipur Mumbai Hyderabad Durgapur Raipur Mumbai Muzaffarnagar Hyderabad Structure Market in Feb 14 Buying in the month of February was low compared to January. New gauge difference in Raipur for Structure put pressure on sellers owing to slow down in buying from other states as prices increased after gauge difference applied. Mahamaya Ispat decreased prices by INR 200-300/MT. Offering I-Beam at around INR 33,900/MT in last week of Feb’14(Basic price; advance payment). Mumbai market is stable as offers increased by INR 200/MT. Low purchasing from Raipur provided local manufacturers more booking which led to hold the prices. Ghasiram & Vaishnav Ispat offered Angle 40 mm at around INR 36,200/MT. Southern market showed regular improvement in prices owing to limited production and raw material shortage. However, demand was not good in the market. Primary producers had increased their offers by INR 500- 1,000/MT. Expectations: Demand in March will be more or less same. There is possibility of sudden purchasing owing to end of FY14. On the other hand, elections will play a major role and might affect market in coming months. 30000 31000 32000 33000 34000 35000 36000 37000 3 Months Re-bar(12mm) Price Movement 17000 18000 19000 20000 21000 22000 02/12/13 09/12/13 16/12/13 23/12/13 30/12/13 06/01/14 13/01/14 20/01/14 27/01/14 03/02/14 10/02/14 17/02/14 24/02/14 BasicPricesinINR/MT 3 Months Sponge Price Movment

Table 7: Structure Prices Small & Medium Size City 01 Feb'14 15 Feb'14 28 Feb'14 01 Feb'14 15 Feb'14 28 Feb'14 01 Feb'14 15 Feb'14 28 Feb'14 Raipur 34,100 34,100 33,900 34,000 34,100 34,000 34,100 33,900 34,000 Mumbai 36,000 36,200 36,200 37,000 37,200 37,200 37,200 37,400 37,400 Durgapur 34,900 35,100 34,800 35,200 35,100 34,800 35,650 35,800 35,500 Ahmedabad 35,200 35,100 35,400 35,400 35,300 35,600 36,000 35,900 36,200 Hyderabad 34,900 35,300 35,500 35,400 35,800 36,000 35,400 35,800 36,000 Ghaziabad - - - 36,500 36,800 36,900 36,500 36,800 36,900 Note: All Basic Prices, Taxes, Loading & Frieght Extra. 125,150 I-Beam75,100/200 Channel40, 50 Angle From To Raipur Jalna 1,200-1,400 Durgapur Mandi 2,500-2,600 Raigarh Ghaziabad 2,500 Raipur Mandi 2,800-2,900 Raigarh Mandi 3,100 Rourkela Mandi 3,400 Rourkela Ghaziabad 2,800 Rourkela Raipur 1,100 Bellary Jalna 1,400 Bellary Wada (M.H) 1,800 Des na on Freight Charges by Road (INR/MT ) 30000 31000 32000 33000 34000 35000 36000 37000 BasicPricesinINR/MT 3 Months Structure Price Movement Mumbai Raipur Durgapur Hyderabad Stee int TM Steeling is Basic l February, 2014 Semi Finish & Finished Steel Review SteelMint OUR CONTACT DETAILS Raipur: #301, Jeevan Parisar, Rajeev Nagar Behind Crystal Arcade Raipur (C.G) - 492 007 India Tel: +91 771 2284888 Kolkata: 5th Floor, Vishvakarma Building, 86, Topsia Road, South-West Block Kolkata (W.B) - 700 046, India Tel: +91 33 22852063 Email: info@steelmint.com | Web: www.steelmint.com We look forward for your feedback at feedback@steelmint.com

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