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| Long silence broken finally - 08 Sep, 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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The long product prices in India have exhibited a reverberating start in September. It is noteworthy the market had an extended hiatus of 5 months wherein the hopes of revival had been belied. The turnaround came knocking just when the desperation seemed unending. Albeit for extraneous reasons reprieve was always welcome. The unprecedented spike in international scrap levels had inevitable fallout on the domestic levels as the input costs soared. Secondary manufacturers where bludgeoned to push the prices. Ironically just round this time steel majors sitting over burgeoning stocks opted for price rollover rather than reduction bringing them at par with the secondary levels. This prompted the fence sitters to opt for primary material rather than re rolled. As fallout, several rerollers and mini furnace operators were compelled to shut down. Come September with monsoon on the wane the market was in for an early acceleration for the following reasons 1. Input costs soared with scrap prices on fire and sponge iron manufacturers forming a cartel in the production hub of Raipur to withstand depressive onslaught. 2. Project demand which had shrunk to just in time levels have been unleashed as they are due for half yearly review and with the inflation setting in cheaper procurement was has been triggered before it is late. 3. Replenishment of depleted stocks with the traders and stockists too became inevitable in this run up.
ILPPI - Indian Long Product Price Index
PI - Product Index (Source www.steelprices-india.com) September heralded an ambitious price increment of nearly INR 1000 per tonne by some steel majors and secondary manufacturers alike. The inferno has razed unabated. The long product prices has gained by 1% during the week with Ingot and TMT gaining on all locations up to 7% & 5% respectively. Pencil ingot
Change as on September 7th as compared to September 1st 2010 TMT Fe 415 12mm
Change as on September 7thas compared to September 1st 2010 It is expected that the secondary manufacturers are expected to play truant as a survival tactics by pushing the prices towards month end thereby exciting primary mills into over indulgence and tactfully pulling the rug by announcing price reduction to regain lost ground and liquidate stocks. The obduracy of international long product prices in remaining stable at USD 540 per tonne to USD 550 per tonne FOB Black Sea for billets and USD 580 per tonne to USD 590 per tonne FOB Black Sea for rebar has added strength to the rally. The opening of Middle East next week after Ramadan will catalyze the spike. Chinese domestic levels are already on the rampage have gained 5% during the same period. In all it seems the stage is set for startling show with pyrotechnics setting the horizon ablaze before the winter sets in but with a big question mark that would the increase in real demand post rainy season overpower the excess capacity? www.steelprices-india.com is a comprehensive portal that provides domestic pricing information for benchmark steel products in each category at select location in India on a regular basis 5 days a week and international price levels on a weekly basis. As steel in each category comes in hundreds of grades shapes and sizes, we have taken benchmark products in each category at select locations to cover the entire basket of garden variety of steel products including input material for steel making and processing. Products covered 1. Input materials - Iron ore, scrap, sponge iron, pig iron pencil ingot, billets and blooms 2. Long products - Rebar, wire rod, angle, channel and joists 3. Flat products - Narrow plates, wide plates, HR, CR and galvanized 4. Others - Pipes Methodology and access 1. Benchmark products in each category with fixed commonly used sizes and grades 2. Base prices or effective, as per market trends 3. Average transaction levels which have settled well, based on continuous interactions with domestic mills, overseas suppliers, importers stockiest & service centers and buyers 4. On fixed market oriented payment terms 5. Daily updates 6. Data available since July 2008 5. Access through web site Price basis Without ED and VAT for all products except for rebar and sections Other features The prices are displayed on weekly and monthly basis. They also have search facilities to access old data from the archives. Graphical representation of trends and comparison of price movement 2 or more products is also available. In addition, you can monitor currency exchange rates, metal prices, BDI for the day as well as access their archives for past data. Other features include converters for weight, length etc, glossary and advanced search functions. The benchmark product price information is supplemented by global pricing news. Subscription charges for 12 months access
How to subscribe 1. Register at www.steelprices-india.com and pay on line or ask for invoice 2. Send mail to admin@steelprices-india.com. 3. Call at 0091-124-3007891/2/3 (Sourced from www.steelprices-india.com) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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