Daily Update: Indian Steel Market 7 Aug’19

Indian steel prices drop further on account of limited spot trades and rising inventories with the mid sized mills.

As per daily assessment the prices declined by INR 100-700/MT in which sponge iron prices down by INR 100-300/MT, Billet by INR 200-700/MT & Rebar INR 100-500/MT with major fall of INR 500-700/MT (USD 7-10) in North, West & Southern India.

SteelMint also analysed that prevailing offers of Semis products in major markets are currently almost 2 years low as similar price range were last seen during Jul-Aug’17.

SteelMint’s latest price assessment for induction furnaces billet in Indian market stood at INR 24,700-28,700/MT (USD 347-404) ex-plant.

Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 15,800-16,700/MT (USD 222-235); prices are ex-plant & excluding GST.

Rupee & BSE Sensex

On 7th August 2019 (Wednesday) INR to USD exchange rate stood at INR 70.98.

ICEX (Indian Commodity Exchange Ltd) Sep’19 contract for STEELLONG today open at INR 26,400/MT & last traded (IST 18:34 hrs) at INR 25,480/MT.

BSE Sensex closed at 36,690(-286) on Wednesday, as against last day (Tuesday) at 36,976(+277).

NSE Nifty50 index was closed today at 10,855(-92) & Nifty Metal at 2,389(-58).

Raw Materials

Indian iron ore imports in July’19 have been recorded at 51,470 MT, witnessed 28% decline for the month compared to 71,865 MT in June’19.

NMDC (Chhattisgarh) supplied total of 222 rakes (0.85 MnT) of iron ore in the month of Jul’19, down 28% against 310 rakes (1.19 MnT) a month before in Jun’19, according to railway movement data maintained with SteelMint.

Melting scrap offers in Eastern India- Durgapur declined by INR 500/MT in a day trade activities.

Semi Finished

Vizag Steel has issued an export tender of 25,000 MT basic grade steel making Pig iron for any country other than Nepal. This tender is due on 14 Aug’19.

RINL has invited a tender for export of 10,000 MT Wire Rod 20,000 MT Bloom, 10,000 MT Cast Round and 20,000 MT Billets. Interested bidders can submit their bids till 13 Aug’19 at 14:00.

Raipur based sponge manufacturers have reduced sponge P-DRI prices by INR 200/MT to INR 15,700-15,900/MT, however limited deals heard due to competitive offers from Raigarh & Odisha at INR 15,700-15,800/MT FoR Raipur.

Major sponge producers in Durgapur have further cuts offer due to falling furnaces productions amid limited demand. Today offers for P-DRI through Rashmi Metaliks heard at INR 14,800-15,000/MT as against yesterday at INR 15,100-15,200/MT.

Odisha based medium size sponge manufacturers offered FeM 80 C-DRI (70:30 mix material) at INR 15,800-16,000/MT ex-plant & excluding GST.

BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 15,700-15,800/MT ex-Bellary, offers decline by INR 200/MT from the last trade; an official reported.

BIOP Steels in South India has kept offers unaltered; offering FeM 80 & 82 C-DRI lumps at INR 16,400/MT & INR 16,800/MT ex-plant, Karnataka; an official reported.

Wire Rod & Pipe

— Trade discounts in Raipur wire rod further increased and assessed at INR 1,500-1,800/MT through manufacturers & INR 2,200-2,400/MT by re-sselers end. Similarly in Durgapur where trade reference prices dropped by INR 300/MT to INR 29,000-30,000/MT ex-plant.

BHEL invites tender for purchase of 80,000 MTR Pipe in Uttarakhand. The due date for submitting the bids is 29 Aug’19.

Raipur, Central India based ERW pipe manufacturers offers reported at around INR 31,200-31,400/MT ex-plant & excluding GST.

Rebar (12 mm)

Raipur based Real Ispat (GK TMT) has unchanged their offers at INR 31,700/MT.

Raigarh based Anjani Steels Ltd. (Radhe TMT) is offering at INR 28,500/MT(down by INR 800/MT).

Raigarh based Scan Group branding (Shrishti TMT) is offering at INR 29,300/MT(down by INR 200/MT).

Gujarat based Diamond TMT has unchanged their offers at INR 32,900/MT.

Gujarat based Akshar Ispat Ltd. (Akshat TMT) is current offering at INR 32,400/MT FoR.

Jalna based Rajuri Steel Pvt. Ltd. (Rajuri TMT) is offering INR 30,900/MT(down by INR 200/MT).

Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) is offering at INR 31,000/MT(down by INR 200/MT).

Chennai based Ponneri Steel Ind. (Triple Power) is current offering at INR 33,500/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 7th August 2019

Particular/Delivery Size, Grade, Origin Prices Min Max Change 1W 1M
Scrap Ex-Alang HMS(80:20) 21,500 21,400 21,600 – 100 22,200 22,500
Ex-Mumbai HMS(80:20) 20,700 20,600 20,800 – 100 21,000 21,200
Ex-Chennai HMS(80:20) 20,400 20,300 20,500   0 20,200 21,100
C-DRI Ex-Durgapur Mix, FeM 78%, +/-1 15,800 15,700 15,900 – 350 17,400 17,700
Ex-Rourkela Mix, FeM 80%, +/-1 15,900 15,800 16,000 – 200 16,500 16,300
Ex-Raipur Mix, FeM 80%, +/-1 16,700 16,600 16,800 – 100 17,200 17,000
Ex-Bellary Lumps, FeM 80%, +/-1 16,300 16,200 16,400 – 100 16,400 16,600
P-DRI Ex-Durgapur Lumps, FeM 78%, +/-1 14,800 14,700 14,900 – 350 16,400 16,700
Ex-Raipur Lumps, FeM 80%, +/-1 15,750 15,700 15,800 – 100 16,200 16,000
Ex-Bellary Lumps, FeM 80%, +/-1 15,700 15,600 15,800 – 200 15,800 16,000
Ex-Hyderabad Lumps, FeM 80%, +/-1 16,200 16,100 16,300 – 200 16,400 16,500
Ingot Ex-Mandi Gobindgarh 3.5 x 4.5 Inch, IS 2830 27,200 27,100 27,300 – 600 29,200 30,250
Ex-Durgapur 3.5 x 4.5 Inch, IS 2830 25,000 24,900 25,100 – 400 25,900 26,800
Ex-Rourkela 3.5 x 4.5 Inch, IS 2830 24,400 24,300 24,400 – 400 25,400 26,300
Ex-Raipur 3.5 x 4.5 Inch, IS 2830 24,900 24,800 25,000 – 450 26,000 26,700
Ex-Mumbai 3.5 x 4.5 Inch, IS 2830 26,850 26,800 26,900 – 100 27,200 27,450
Billet Ex-Mandi Gobindgarh 100×100 mm, IS 2831 27,300 27,200 27,400 – 700 29,300 30,300
Ex-Durgapur 100×100 mm, IS 2831 25,400 25,300 25,500 – 300 26,400 27,400
Ex-Rourkela 100×100 mm, IS 2831 24,700 24,600 24,800 – 400 25,700 26,600
Ex-Raipur 100×100 mm, IS 2831 25,300 25,200 25,400 – 400 26,300 27,300
Ex-Ahmedabad 100×100 mm, IS 2831 27,000 26,800 27,100 – 500 28,700 28,700
Ex-Mumbai 100×100 mm, IS 2831 27,150 27,100 27,200 – 100 27,500 27,700
Ex-Chennai 100×100 mm, IS 2831 28,700 28,500 28,800 – 200 29,200 29,500
Ex-Hyderabad 100×100 mm, IS 2831 27,000 26,900 27,100 – 500 28,000 28,000
TMT Ex-Delhi/NCR 12-25 MM, IS 1786- 500 Fe 32,600 32,400 32,800 – 500 33,800 34,500
Ex-Durgapur 12-25 MM, IS 1786- 500 Fe 29,200 29,000 29,400 – 400 30,600 32,500
Ex-Rourkela 12MM, IS 1786- 415/500 Fe 29,200 29,100 29,400 – 300 29,800 NA
Ex-Raipur 12-25 MM, IS 1786- 500 Fe 28,500 28,300 28,700 – 400 29,800 31,300
Ex-Jalna 12-25 MM, IS 1786- 500 Fe 30,700 30,500 30,800 – 200 31,200 32,300
Ex-Mumbai 12-25 MM, IS 1786- 500 Fe 30,100 29,900 30,200   0 30,400 30,900
Ex-Chennai 12-25 MM, IS 1786- 500 Fe 33,000 32,900 33,200   0 33,600 34,200
Ex-Hyderabad 12-25 MM, IS 1786- 500 Fe 31,200 31,000 31,400 – 300 32,000 32,300
Wire Rod Ex-Durgapur Wire Rod(5.5 MM) 29,300 29,000 30,000 – 300 30,400 31,900
Ex-Raipur Wire Rod(5.5 MM) 29,500 28,700 31,100 – 200 30,900 32,900

Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research


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