Billet prices in Indian domestic market continued down trend and are currently hovering at over 1 year low as similar levels were last seen in Dec 2017, as per price assessment made by SteelMint.
The prices are declining on account of mis-match trade cycle, where supply has remained healthy although demand is slow in domestic & exports as well.
The producers who largely depend on exports are dumping material in domestic market, which has unbalanced market. In addition, weakening finished steel demand since quite some time, has raised selling pressure among all kind producers in almost regions; resulting constant drop in prices.
As per daily assessment, today the Billet, Sponge iron & Rebar prices dropped by INR 100-400/MT and since beginning of month by INR 500-1,500/MT (USD 7-22).
The participants believe, if demand remains bearish, the producers don’t have another option than to reduce output in order to maintain margins with balanced of demand-supply.
SteelMint’s latest price assessment for induction furnaces billet in Indian market stood at INR 29,600-33,800/MT (USD 425-486) ex-plant.
Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 18,000-18,700/MT (USD 258-269); prices are ex-plant & excluding GST.
Rupee & BSE Sensex
— On 10th June 2019 (Monday) INR to USD exchange rate stood at INR 69.57.
— ICEX (Indian Commodity Exchange Ltd) Jul’19 contract for STEELLONG today open at INR 33,120/MT & last traded (IST 18:15) at INR 32,960/MT.
— BSE Sensex closed at 39,784(+168) on Monday, as against last day (Friday) at 39,615(+86).
— NSE Nifty50 index was closed today at 11,922(+52) & Nifty Metal at 2,912(+5).
Raw Materials
— NMDC sales from Kirandul facility, Chhattisgarh have been put to halt since 7th June (Friday) over protest from tribal’s over mining in Deposit 13.
— Steel industry veteran Mr VR Sharma, who was serving as Group CEO of Bangladesh based major group – Abul Khair to re-join India’s Jindal Steel & Power (JSPL) as Managing Director of Steel division, SteelMint learned from its sources.
— According to the latest assessment of Coking coal, spot prices of the Premium HCC are reported at around USD 199/MT FoB Australia & USD 212.25/MT CNF India.
— South African RB2 (5500 NAR) coal offers are assessed at USD 52.16/MT on FoB basis & USD 65.16/MT CNF India.
— According to provisional data released by Joint Plant Committee (JPC) Indian crude steel output stood at 9.24 MnT in May’19 inched up by 5% as compared to 8.78 MnT in previous month.
— Silico Manganese offers for 60-14 grade in Raipur are in the range of INR 65,000 – 65,500/MT Ex-Raipur and in Durgapur deals are being concluded at around INR 66,500-67,000/MT Ex-Durgapur.
Semi Finished
— As per officials from Neo Metaliks, steel grade pig iron demand remains weak despite drop prices by INR 200/MT to INR 27,800-28,000/MT ex-Durgapur.
— Raipur based a integrated plant has got healthy bookings on sharp reduce Sponge P-DRI prices at INR 17,200/MT (ex-plant). However later 100-500 TPD sponge plants have offered same material at INR 17,300-17,500/MT ex-plant.
— Rashmi Metaliks in Durgapur has reduce sponge P-DRI prices at INR 17,700-17,800/MT, as per sources.
— Raigarh based Singhal Steel offered P-DRI at INR 17,000/MT & Billet at INR 29,800/MT ex-Raigarh, officials reported.
— Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 18,300/MT & Billet at INR 29,800-30,000/MT ex-plant.
— East India, Odisha based manufacturer, Mahavir Ferro Alloys offered Billet at INR 30,000/MT ex-plant as per officials. However as per participants no major buyers at this prices.
— BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 18,000-18,100/MT ex-Bellary, offers decline by INR 300-400/MT from the last trade; an official reported.
— BIOP Steels in South India has decreased sponge prices by INR 200/MT, offering FeM 80 & 82 C-DRI lumps at INR 18,600/MT & INR 19,000/MT ex-plant, Karnataka; an official reported.
Wire Rod & Pipe
— Trade discounts in Raipur Wire rod increased by INR 200/MT to INR 1,500-1,700/MT as against 8th Jun’19 due to steady base price at INR 36,700/MT ex-plant. Similarly in Durgapur where trade reference price of Wire rod fell by INR 200/MT to INR 35,500-36,200/MT ex-plant.
— Mandi Gobindgarh, North India based ERW pipe manufacturers offers reported at around INR 39,700/MT ex-plant & excluding GST.
— Raipur, Central India based ERW pipe manufacturers offers reported at around INR 37,800/MT ex-plant & excluding GST. Offers decline by INR 200/MT D-o-D.
— Hyderabad (South India) based manufacturer Mahalakshmi Profiles Pvt. Ltd (MPL) has offered ERW Pipe at INR 39,800/MT ex-plant. (basic & excluding GST).
Rebar (12 mm)
— Rathi Steels based in North region is offering at around INR 37,900/MT (ex-Delhi).
— Raipur based – SPEED TMT is offering at INR 35,000/MT (down by INR 300/MT).
— Raigarh based N.R Ispat & Power Pvt. Ltd (N.R TMT) is offering at INR 34,700/MT.
— Gujarat based Shreeyam Power & Steel Industries Ltd. (National TMT) is offering at INR 35,800/MT FoR.
— Jalna based Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) has unchanged their offers at INR 35,500/MT.
— Jalna based Kalika Steels Alloys Pvt. Ltd. (Kalika TMT) is offering at INR 35,500/MT.
— Chennai based ARS Steel (ARS 500 D) is offering at INR 39,100/MT (down by INR 500/MT).
— Chennai based Ponneri Steel Ind. (Triple Power) is currently offering at INR 37,000/MT.
Note – Prices mentioned above are ex-work, excluding GST & changes are placed on day basis. Prices are subject to reconfirmation.
Reference prices as on 10th June 2019
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| Scrap | Ex-Alang | HMS(80:20) | 25,700 | 25,600 | 25,800 | + 100 | 25,700 | 25,900 |
| Ex-Mumbai | HMS(80:20) | 24,800 | 24,700 | 24,900 | + 100 | 24,800 | 24,900 | |
| Ex-Chennai | HMS(80:20) | 23,500 | 23,400 | 23,700 | 0 | 23,600 | 23,600 | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 18,700 | 18,600 | 18,800 | – 100 | 19,500 | 18,700 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 18,200 | 18,000 | 18,200 | – 200 | 18,600 | 18,650 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 18,700 | 18,600 | 18,800 | – 150 | 19,500 | 19,600 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 18,500 | 18,400 | 18,600 | – 200 | 19,000 | 19,000 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 17,700 | 17,600 | 17,800 | – 100 | 18,500 | 17,500 |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 17,400 | 17,300 | 17,500 | – 300 | 18,300 | 18,550 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 18,000 | 18,000 | 18,100 | – 300 | 18,600 | 18,500 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 18,600 | 18,500 | 18,700 | – 400 | 19,200 | 19,100 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 33,450 | 33,400 | 33,500 | – 150 | 34,150 | 33,800 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 30,200 | 30,100 | 30,300 | – 300 | 31,200 | 31,000 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 29,400 | 29,300 | 29,400 | – 200 | 30,100 | 30,100 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 29,500 | 29,400 | 29,600 | – 400 | 30,500 | 30,550 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 31,500 | 31,400 | 31,600 | + 100 | 31,500 | 32,700 | |
| Billet | Ex-Mandi Gobindgarh | 100×100 mm, IS 2831 | 33,800 | 33,700 | 33,900 | – 100 | 34,700 | 34,200 |
| Ex-Durgapur | 100×100 mm, IS 2831 | 30,650 | 30,600 | 30,700 | – 250 | 31,600 | 31,400 | |
| Ex-Rourkela | 100×100 mm, IS 2831 | 29,800 | 29,700 | 29,900 | – 100 | 30,600 | 30,500 | |
| Ex-Raipur | 100×100 mm, IS 2831 | 30,050 | 30,000 | 30,100 | – 350 | 31,150 | 31,100 | |
| Ex-Ahmedabad | 100×100 mm, IS 2831 | 32,200 | 32,100 | 32,400 | – 150 | 32,400 | 32,100 | |
| Ex-Mumbai | 100×100 mm, IS 2831 | 31,750 | 31,700 | 31,800 | + 150 | 31,700 | 33,100 | |
| Ex-Chennai | 100×100 mm, IS 2831 | 31,200 | 31,200 | 31,400 | – 200 | 31,700 | 31,800 | |
| Ex-Hyderabad | 100×100 mm, IS 2831 | 31,000 | 30,800 | 31,000 | 0 | 31,500 | 31,500 | |
| TMT | Ex-Delhi/NCR | 12-25 MM, IS 1786- 500 Fe | 37,000 | 36,800 | 37,200 | – 100 | 37,400 | 37,100 |
| Ex-Durgapur | 12-25 MM, IS 1786- 500 Fe | 35,500 | 35,300 | 35,700 | 0 | 36,600 | 36,500 | |
| Ex-Raipur | 12-25 MM, IS 1786- 500 Fe | 34,300 | 34,200 | 34,500 | – 200 | 35,100 | 35,100 | |
| Ex-Mumbai | 12-25 MM, IS 1786- 500 Fe | 34,400 | 34,300 | 34,700 | 0 | 35,000 | 36,100 | |
| Ex-Chennai | 12-25 MM, IS 1786- 500 Fe | 36,200 | 36,000 | 36,400 | – 100 | 36,600 | 37,000 | |
| Ex-Hyderabad | 12-25 MM, IS 1786- 500 Fe | 34,800 | 34,600 | 35,000 | – 200 | 35,500 | 35,300 | |
| Wire Rod | Ex-Durgapur | Wire Rod(5.5 MM) | 35,800 | 35,500 | 36,200 | – 200 | 36,700 | 36,900 |
| Ex-Raipur | Wire Rod(5.5 MM) | 35,800 | 35,000 | 36,700 | – 100 | 36,900 | 37,700 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
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