Indian steel prices continue to surge and the sponge iron prices hit all time in Indian domestic market, as per data maintained with SteelMint, since 2010. On daily analysis, the Indian sponge iron prices increase by INR 100-400/MT & INR 2,000-4,000/MT (28-56) in a month duration.
As per the producers, prices significant on rise in line with active demand & rising prices and short supply of key raw materials – Iron ore & Pellets.
Following the hike in sponge iron, the billet manufacturers have follow suit and the prices increased by INR 100-800/MT day-on-day & INR 2,500-4,500/MT (USD 35-63) in a month.
The industry participants are assuming Semis prices to remain strong as inventories are limited also demand is supported and is expected to grow with end of monsoon season.
SteelMint’s today price assessment for induction furnaces billet in Indian market stood at INR 36,400-38,700/MT (USD 506-538) and the coal based sponge (78-80 FeM) C-DRI price was at INR 23,600-26,500/MT (USD 328-369); prices are ex-plant & excluding GST.
Rupee & BSE Sensex
— On 5th September 2018 (Wednesday) INR to USD exchange rate stood at INR 71.9
— BSE Sensex closed at 38,242 (+244) on Thursday, as against last day (Wednesday) at 38,018 (-140).
Raw Material
— Indian iron ore imports in Aug’18 recorded at 1.38 MnT, decline by 11% as against 1.55 MnT in July’18.
— Imported scrap deals remain limited for India due to sharp currency depreciation and recent price rise in global market. The price assessment for containerized Shredded stands at USD 360/MT from UK and Europe as against last week at USD 345-350/MT, CFR Nhava Sheva.
Semi Finish
— Jindal Steel has raised prices and offered Panther shots (Granulated pig iron) at INR 30,500/MT Ex-Plant, Odisha & Steel grade Pig iron at INR 32,000/MT Ex-Plant, Raipur
— The private pig iron producers in Eastern India have maintain offers and the prices in Durgapur reported at INR 31,300-31,500/MT & in Jharkhand at INR 31,000-31,300/MT Ex-Plant.
— MMTC on behalf of NINL has floated a auction to sale about 2,800 MT high silicon (2-3%) pig iron from its Odisha plant on ex-works basis. The due date for bid submission is 19th Sep’18.
— Raipur based manufacturers have increased sponge prices by INR 200-300/MT and offers for P-DRI was at INR 25,200-25,300/MT ex-plant.
— Rashmi Metaliks in Durgapur has raised sponge prices by INR 300-400/MT and trades for P-DRI heard at around INR 24,500/MT.
— Apple Industries in Bellary (Karnataka) offered Sponge FeM 83+ P-DRI lump at INR 24,200/MT & Billet at INR 37,000/MT ex-plant.
— BIOP Steels in South India has offered FeM 80 & 82 C-DRI lumps at INR 23,600/MT & 24,200/MT ex-plant, Karnataka; an official reported.
Finish Long
— Vizag Steel (RINL) received good response for its export tender of 10,836 Wire rod & 2,709 MT Billets to Nepal. As per participants, the highest bid for Wire rod fetched at USD 593-595/MT & for Billets around USD 503-505/MT Ex-Mill. However as per company officials the tenders have yet not been concluded and are still under discussions.
— GK TMT has increased offers by INR 300/MT on D-o-D basis & currently offering 10-25 MM at INR 42,100/MT, ex-Raipur & excluding GST.
— Raipur Power and Steel Ltd offering Wire Rod (5.5 MM) at INR 41,700/MT, Silico Manganese at INR 66,000/MT & Sponge – PDRI at 25,200/MT, ex-mill & excluding GST.
— The suppliers in Raipur slightly increased trade discount on wire rod and today’s discount at INR 500-1,000/MT.
— Rathi Steels in North region, Delhi offering rebar at INR 42,300/MT, size – 12 mm & excluding GST.
— South India – Chennai based ARS Trusteel increased their prices by INR 300/MT on day basis & current offering rebar 12 MM at INR 43,000/MT, ex-plant & excluding GST.
— Central region, Raipur based brand – SPEED TMT has increased their prices by INR 200/MT on day basis and current offering at INR 37,700/MT (28 MM), ex-work & excluding GST.
— Jalna based rebar manufacturer – SRJ Peety Steels Pvt Ltd branding Shree Om TMT increased their rebar prices by around INR 400/MT to INR 37,700/MT (28 MM), ex-work & excluding GST.
— Gujarat based Shreeyam Power & Steel Industries Ltd branding as National TMT has increased prices by around INR 500/MT & offers basic rebar at INR 48,700/MT (20 MM) FoR & including GST at 18%.
— East region based – Baba Smelter Pvt. Ltd has increased their prices by INR 500/MT on day basis & current offering Structure (125/150) Channel at INR 42,250/MT, ex-work & excluding GST.
Reference prices as on 6th September 2018
| Products | Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 25,400 | 25,300 | 25,500 | +400 | 24,450 | 23,600 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 25,200 | 25,100 | 25,300 | +200 | 24,500 | 21,900 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 26,500 | 26,400 | 26,600 | +100 | 25,700 | 23,100 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 23,600 | 23,500 | 23,700 | +300 | 23,200 | 20,300 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 24,400 | 24,300 | 24,500 | +400 | 23,350 | 22,400 |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 25,200 | 25,100 | 25,300 | +150 | 24,600 | 21,750 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 23,100 | 23,000 | 23,200 | +300 | 22,800 | 19,500 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 23,650 | 23,600 | 23,700 | +350 | 23,000 | 19,900 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 38,200 | 38,100 | 38,300 | -50 | 37,800 | 35,800 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 36,900 | 36,800 | 37,000 | +300 | 36,300 | 33,200 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 35,500 | 35,400 | 35,600 | +500 | 34,600 | 32,000 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 35,900 | 35,800 | 36,000 | +350 | 35,050 | 32,500 | |
| Ex-Chennai | 3.5 x 4.5 Inch, IS 2830 | 36,800 | 36,800 | 37,000 | +800 | 36,500 | 35,300 | |
| Ex-Hyderabad | 3.5 x 4.5 Inch, IS 2830 | 37,200 | 37,100 | 37,300 | +500 | 36,200 | 34,700 | |
| Billet | Ex-Mandi Gobindgarh | 125×125 mm, IS 2831 | 38,700 | 38,600 | 38,800 | 0 | 38,600 | 36,200 |
| Ex-Durgapur | 125×125 mm, IS 2831 | 37,400 | 37,300 | 37,500 | +300 | 36,800 | 33,700 | |
| Ex-Rourkela | 125×125 mm, IS 2831 | 36,300 | 36,200 | 36,400 | +300 | 35,500 | 32,800 | |
| Ex-Raipur | 125×125 mm, IS 2831 | 36,900 | 36,800 | 37,000 | +400 | 36,000 | 33,300 | |
| Ex-Chennai | 125×125 mm, IS 2831 | 37,300 | 37,300 | 37,500 | +800 | 37,000 | 35,800 | |
| Ex-Hyderabad | 125×125 mm, IS 2831 | 37,500 | 37,400 | 37,600 | +500 | 36,500 | 35,000 | |
| TMT | Ex-Delhi/NCR | 12-25 MM, IS 1786- 500 Fe | 41,100 | 40,900 | 41,300 | +100 | 40,900 | 38,700 |
| Ex-Durgapur | 12-25 MM, IS 1786- 500 Fe | 41,300 | 41,100 | 41,500 | +300 | 40,800 | 36,800 | |
| Ex-Raipur | 12-25 MM, IS 1786- 500 Fe | 39,800 | 39,600 | 39,900 | +300 | 39,100 | 36,600 | |
| Ex-Mumbai | 12-25 MM, IS 1786- 500 Fe | 40,800 | 40,800 | 41,000 | +400 | 40,100 | 38,200 | |
| Ex-Chennai | 12-25 MM, IS 1786- 500 Fe | 41,200 | 41,000 | 41,400 | +200 | 41,400 | 40,000 | |
| Ex-Hyderabad | 12-25 MM, IS 1786- 500 Fe | 41,000 | 40,800 | 41,200 | +500 | 40,000 | 38,700 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
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