Asian-Pacific metallurgical coal prices continued to climb last week. Platts assessed Premium Low Vol spot prices up by US$ 2.50/T at US$ 83.25/T CFR China from last Friday. Second-tier coals went up by 75 cents to US$ 79.25/T CFR China. As per market analysts, market would remain bullish for the first-tier and semi-premium segments in the near-term, which could last anywhere from the next two weeks to two months, but would not be sustainable after that. (Source - SBB, London)
Spot prices of internationally-traded HRC in Asia kept rising for a fifth consecutive day on Friday, amid more deals and short supply from Chinese mills. Sources remained bullish about China-origin export prices this week as mills are short of supply, even for sale to the home market. Platts assessed HRC 3.0mm thick at US$ 310-315/T FOB China, up by US$ 4/T on day. (Source - SBB, London)
Indian steelmakers will continue to struggle with overcapacity denting their profitability, as per London-based ratings agency Fitch Ratings. India’s overall steel capacity is projected to jump by about 15 MTpa within the coming twelve months, exceeding the potential rise in domestic demand estimated at 6 MT during the year as per Fitch. Upcoming capacity additions include some 4 MTpa being added by JSW Steel and 3 MTpa from Tata Steel in various greenfield and brownfield expansions. (Source - SBB, London)
The spot iron ore price moved up higher on Friday, closing at the highest level seen since October 16 last year. Metal Bulletin’s iron ore index (MBIOI-62) rose by 5% to US$ 53.75/T, leaving its year to date gain at 23.4%. From US$ 38.30/T, the record low level struck on December 11 last year, the price has now rallied by 40.3%. (Source - Metal Junction)
India’s domestic steel consumption in February stood at 6.84 MT, a decline of 1.9% against January, but it rose by 4.7% from February 2015- as per JPC. Steel imports fell marginally by 0.1% to 0.91 MT as compared with January 2016, but the decline was much steeper at 7.3% compared with the same month last year. This is the fourth consecutive year-on-year decline in in-bound shipments. Steel production rose by 1.8% yoy to 7.3 MT in February this year. (Source - Press Reports)
Steel prices in China have risen sharply over the past few days, showing signs of more positive investor sentiment and that the economy may be stabilising after Beijing promised more easing measures to help boost growth. Prices of steel billet, in Hebei province’s Tangshan rose more than 15% over the last three days. China has targeted at least 6.5% annual growth for the next five years – that will require strong fixed-asset investment at home as the exports rapidly come down. (Source – Press Reports)
Spot prices of internationally-traded HRC in Asia kept rising for a fifth consecutive day on Friday, amid more deals and short supply from Chinese mills. Sources remained bullish about China-origin export prices this week as mills are short of supply, even for sale to the home market. Platts assessed HRC 3.0mm thick at US$ 310-315/T FOB China, up by US$ 4/T on day. (Source - SBB, London)
Indian steelmakers will continue to struggle with overcapacity denting their profitability, as per London-based ratings agency Fitch Ratings. India’s overall steel capacity is projected to jump by about 15 MTpa within the coming twelve months, exceeding the potential rise in domestic demand estimated at 6 MT during the year as per Fitch. Upcoming capacity additions include some 4 MTpa being added by JSW Steel and 3 MTpa from Tata Steel in various greenfield and brownfield expansions. (Source - SBB, London)
The spot iron ore price moved up higher on Friday, closing at the highest level seen since October 16 last year. Metal Bulletin’s iron ore index (MBIOI-62) rose by 5% to US$ 53.75/T, leaving its year to date gain at 23.4%. From US$ 38.30/T, the record low level struck on December 11 last year, the price has now rallied by 40.3%. (Source - Metal Junction)
India’s domestic steel consumption in February stood at 6.84 MT, a decline of 1.9% against January, but it rose by 4.7% from February 2015- as per JPC. Steel imports fell marginally by 0.1% to 0.91 MT as compared with January 2016, but the decline was much steeper at 7.3% compared with the same month last year. This is the fourth consecutive year-on-year decline in in-bound shipments. Steel production rose by 1.8% yoy to 7.3 MT in February this year. (Source - Press Reports)
Steel prices in China have risen sharply over the past few days, showing signs of more positive investor sentiment and that the economy may be stabilising after Beijing promised more easing measures to help boost growth. Prices of steel billet, in Hebei province’s Tangshan rose more than 15% over the last three days. China has targeted at least 6.5% annual growth for the next five years – that will require strong fixed-asset investment at home as the exports rapidly come down. (Source – Press Reports)
Steel Ministry has written to finance ministry to rollback increase in cess for clean coal by Rs.200 in budget. Coking coal is a clean coal and this increase will affect steel prices very much, the steel ministry said.
ReplyDeleteDomestic steel consumption grew by 4.3% during April-February period. However, domestic production fell by 1.9%. All the major steel companies reported a fall in production.
ReplyDeleteTotal steel imports fall in February by 7.3% and continued the trend for the fourth consecutive month.
ReplyDeleteIron ore prices shoot up by 19%. NMDC had reduced its iron ore prices to Rs.1800 per ton from Rs.2100 per ton three months back. This has given a good leeway to NMDC.
ReplyDeleteThe cabinet is likely to consider mines ministry's proposal to allow auction of 100 non-coal mineral blocks.
ReplyDeleteFitch Ratings said that the increased infrastructure spending is unlikely to provide a boost to local steel demand. However, if project execution rates rise, then demand can grow significantly, they said.
ReplyDelete