Indian steel market update- 13 July’20

Indian sponge iron, billet & rebar prices increased by INR 100-300/t today on active demand.

SteelMint learned that demand is supported majorly in central, east & northern India, however southern & western markets remained less active as local movements have slowed down due to lockdown measures over rising cases of COVID-19.

The sponge iron producers in central India reported sufficient orders in hand. Also, in eastern India – Odisha, where active demand was observed from north-east regions based furnaces including local market as well. So assumptions are high for strengthening sponge iron prices in the domestic market.

Raw Material

— Silicon Manganese (60-14) offers through the Raipur based plants reported at INR 61,000-61,500/t, while few deals learned at near to INR 61,000/t ex-plant.

— About 3,000-4,000 pellets deal reported today at INR 6,000/t ex-plant by Raipur based one of the major producers.

— Karnataka has registered a fall of 15% in iron ore e-auction sales volume in the quarter ended Jun’20. Total iron ore allotted quantity in the first quarter (Apr-Jun) was recorded at 5.48 mn t compared to 6.46 mn t in the last quarter (Jan-Mar’20). On yearly basis, it fell by 29% against Q1 FY20.

Semi Finished

— Durgapur based Neo Metaliks has raised steel grade pig iron offers by INR 200-300/t to INR 25,000/t, while few deals reported at near to INR 24,800/t ex-plant.

— Raigarh based a couple of producers have sold over 1,000 t billets at INR 27,400/t ex-plant, equivalent to INR 28,000-28,050/t FoR Raipur.

— Raipur based 2-3 major sponge manufacturers have sold around 4,000-4,500 t sponge P-DRI at INR 16,200-16,300/t, while few of remaining major producers were looking to deal at INR 16,400-500/t ex-plant.

— BMM Ispat, a renowned sponge manufacturer in Bellary has raised P-DRI offers by INR 100/t to INR 15,100-200/t ex-plant.

Rebar (12 mm)

— Paras TMT is offering at INR 32,400/t EXW Muzaffarnagar.

— GK TMT unchanged their offer at INR 33,400/t EXW Raipur.

— Radhe TMT is offering at INR 30,600/t EXW Raigarh.

— Kalika TMT keeps their offer stable at INR 32,000/t EXW Jalna.

— National TMT is offering at INR 33,200/t FoR Ahmedabad.

— Bhagyalaxmi Rolling Mill Pvt. Ltd. (Polaad TMT) situated at Jalna has sold over 2,000 t of rebar today at INR 31,800/t.

— Trade discounts by Raipur based heavy structure manufacturers maintained at INR 400-700/t and trade price of 200 Angle is at INR 34,500-34,900/t EXW.

Wire Rod & Pipe

— Trade discounts in Raipur wire rod drop to INR 600-700/t through the traders & base price firm at INR 31,600/t EXW. However in Durgapur offers slightly up by INR 100/t to INR 31,800-32,000/t EXW.

— ERW Pipe manufacturers have increased offers by INR 100/t to INR 33,800/t ex-Raipur.

Reference prices as on 13th Jul’20

Basic prices in INR/t & excluding GST @ 18%

Source: SteelMint Research