Today, domestic Sponge iron offers decline by INR 100-200/MT, while Billet prices fluctuated by INR 100-500/MT. During the day trade sentiments were mix with the announcement of Union Budget.
In Union Budget today, it was positive in terms of infrastructure and construction projects. But Steel Industry expectations was hardly met in the Union Budget especially it has largely overlooked the key demand to reduce customs duty on melting scrap and coking coal to nil from present level of 2.5%.
Government has introduced 20% Tariff rate on export duty on electrodes used for furnaces. However the current export duty on such electrodes continues to remain zero.
On 1st Feb 2018 (Thursday) INR to USD exchange rate stood at INR 64.05 & BSE Sensex closed at 35,906 (-58).
Key Market Updates:
1. National Mineral Development Corporation (NMDC, Chhattisgarh) has kept Iron ore prices unchanged for February deliveries.
2. Raipur, Central India based Integrated plants offer unaltered, offering Sponge P-DRI at INR 20,000-20,100/MT & Sponge DR CLO grade (mix material) at INR 22,100-22,300/MT ex-plant
3. Durgapur based Rashmi Metaliks has offered Sponge P-DRI at INR 20,500-20,600/MT, the offers are unchanged against last day according to trade sources.
4. Jharsugda, Odisha based Shyam Metaliks has offered – P-DRI at around INR 19,500/MT & Billet at INR 31,500/MT; ex-plant & excluding GST. While, Bhushan Power & Steel has not floated any offer due to the captive consumption.
5. Officials from Singhal Steel, Raigarh reported offers for Sponge P-DRI at INR 20,000-20,100/MT & Silico Manganese at INR 68,000-68,500/MT ex-plant.
6. BMM Ispat in South India, known as price setter has further reduced sponge offers by INR 200-300MT and reported P-DRI at INR 19,300-19,400/MT ex-plant, Bellary. Meanwhile, BIOP Steels in same region has rolled over Sponge C-DRI offers and are reported FeM 80 at INR 20,900/MT & FeM 82 at INR 21,300/MT ex-plant.
7. South India based Cauvery Iron & Steel offers FeM 80 P-DRI at INR 19,800/MT & billet at INR 33,000/MT. Also offering 28 MM Rebars at INR 35,000/MT. prices are ex-plant & excluding GST.
8. According to market participants, trade discounts on Wire rod in Raipur by traders at INR 1,500-1,800/MT and through manufacturers is at INR 1,200-1,400/MT.
9. Kalika Steel Alloys in Jalna unchanged their prices today and offering 28mm rebars at INR 36,600/MT ex-plant & excluding GST.
10. Real Ispat & Power offers Rebar (GK TMT) 28mm at INR 36,600/MT & Wire rod 5.5mm at INR 38,200/MT ex-plant, Raipur. According to the officials demand is supported at these offer prices.
11. Tulsyan NEC Steel (Tulsyan) based in Chennai has offered Rebar 12mm at INR 40,500/MT ex-plant & excluding GST.
Reference prices as on 1st February 2018
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 21,600 | 21,500 | 21,700 | – 100 | 21,600 | 22,200 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 20,800 | 20,700 | 20,900 | – 100 | 21,000 | 21,700 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 21,300 | 21,200 | 21,400 | 0 | 21,500 | 22,500 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 20,200 | 20,100 | 20,300 | – 100 | 20,700 | 20,800 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 20,600 | 20,500 | 20,600 | 0 | 20,600 | 21,200 |
| Ex-Jharsugda | Lumps, FeM 78%, +/-1 | 19,400 | 19,400 | 19,500 | NA | NA | 20,600 | |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 20,000 | 19,900 | 20,100 | 0 | 20,300 | 21,400 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 19,400 | 19,300 | 19,500 | – 200 | 20,000 | 20,300 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 19,800 | 19,700 | 19,900 | – 100 | 20,700 | 20,500 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 34,600 | 34,500 | 34,700 | – 100 | 33,900 | 34,200 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 31,600 | 31,500 | 31,700 | 0 | 31,300 | 32,400 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 30,950 | 30,900 | 31,000 | + 50 | 31,000 | 31,600 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 31,600 | 31,500 | 31,700 | – 100 | 31,700 | 32,300 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 34,000 | 33,900 | 34,100 | 0 | 34,200 | 35,000 | |
| Ex-Chennai | 3.5 x 4.5 Inch, IS 2830 | 34,000 | 34,000 | 34,500 | + 500 | 34,000 | 34,000 | |
| Ex-Hyderabad | 3.5 x 4.5 Inch, IS 2830 | 33,500 | 33,000 | 33,500 | – 250 | 34,500 | 35,000 | |
| Billet | Ex-Mandi Gobindgarh | 125×125 mm, IS 2831 | 35,200 | 35,100 | 35,300 | – 200 | 34,700 | 34,700 |
| Ex-Durgapur | 125×125 mm, IS 2831 | 32,100 | 32,000 | 32,200 | 0 | 31,800 | 32,400 | |
| Ex-Rourkela | 125×125 mm, IS 2831 | 31,400 | 31,400 | 31,500 | 0 | 31,500 | 32,300 | |
| Ex-Raipur | 125×125 mm, IS 2831 | 32,300 | 32,200 | 32,400 | – 100 | 32,500 | 33,200 | |
| Ex-Mumbai | 125×125 mm, IS 2831 | 34,200 | 34,100 | 34,300 | 0 | 34,400 | 35,200 | |
| Ex-Chennai | 125×125 mm, IS 2831 | 34,500 | 34,500 | 35,000 | + 500 | 34,500 | 34,500 | |
| Ex-Hyderabad | 125×125 mm, IS 2831 | 33,500 | 33,250 | 33,750 | – 250 | 34,500 | 35,000 | |
| TMT | Ex-Delhi/NCR | 12MM | 38,200 | 38,000 | 38,400 | 0 | 38,200 | 39,700 |
| Ex-Durgapur | 12MM | 36,300 | 36,100 | 36,500 | 0 | 35,900 | 36,300 | |
| Ex-Raipur | 12MM | 36,000 | 35,800 | 36,200 | 0 | 36,200 | 37,000 | |
| Ex-Mumbai | 12MM | 38,600 | 38,200 | 38,800 | – 200 | 39,300 | 38,800 | |
| Ex-Chennai | 12MM | 39,000 | 38,800 | 39,500 | + 250 | 39,500 | 38,400 | |
| Ex-Hyderabad | 12MM | 37,000 | 37,200 | 37,400 | – 700 | 37,700 | 38,200 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
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