Indian steel market update- 15 July’20

Indian steel prices fell today on account of limited spot trades and as per daily assessment billet prices fell by INR 100-400/t, while sponge iron & rebar by INR 100-200/t in major locations except in the south region.

Sources believe that semis prices should not fall rigorously due to limited conversion (margins) among standalone mills, however limited spot trades are forcing mills to deal at lower prices. Also, it is learned that finished steel demand across the north-east part is going to affect due to lockdown measures & seasonal slowdown.

Raw Material

• Silicon Manganese trades in Raipur are taking place at around INR 61,000/t EXW.
• Singhal Steel, Raigarh based manufacturer has offered 60-14 Silico Manganese at INR 60,500/t EXW.

Semi Finished

• SAIL conducted an auction for 2,850 t off grade pig iron (1-rake loaded) today from its Bokaro Steel Plant, Jharkhand & the entire quantity got booked at INR 23,600/t EXW.
• Durgapur based Neo Metaliks reported few deals for steel grade pig iron at INR 25,000/t ex-plant.
• Rashmi Metaliks has reduced sponge P-DRI offers by INR 100/t to INR 15,700/t FoR Durgapur, as per sources.
• Raipur based major sponge producers have maintained P-DRI offers firm at INR 16,300-500/t ex-plant, however no major deals learned due to slump in billet prices.
• Ind Synergy (Raigarh) offered P-DRI at INR 15,800/t & Billet at INR 27,500/t ex-Raigarh.
• Singhal Steel offered billet at INR 27,200-27,300/t ex-Raigarh.
• Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 16,500/t & billet at INR 26,700-26,800/t EXW.
• South India based, BIOP Steels has sold about 1,000 t FeM 80 C-DRI lumps to Maharashtra & Karnataka region at around INR 15,500/t EXW.
• BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 15,300-15,400/t ex-Bellary & around 4,000 t deals reported in nearby region.

Rebar (12 mm)

• Paras TMT is offering at INR 32,600/t EXW Muzaffarnagar.
• GK TMT offer stable at INR 33,600/t EXW Raipur.
• Scan Group (Shrishti TMT) is offering at INR 31,100/t EXW Raigarh.
• Bajrangbali Steel Industries Pvt Ltd is offering rebar at INR 30,700/t EXW Rourkela.
• Polaad TMT keep offer stable at INR 32,000/t EXW Jalna.
• National TMT is offering at INR 33,200/t FoR Ahmedabad.
• ARS 550 D unchanged their offer at INR 39,000/t EXW Chennai.
• Trade discount by Raipur based heavy structure manufacturers maintained at INR 600-900/t and trade price of 200 Angle is at INR 34,600-35,000/t EXW.

Wire Rod & Pipe

• Trade discounts in Raipur wire rod up by INR 200/t to INR 1,000-1,200/t, however base price remains firm at INR 31,900/t ex-plant. In Durgapur trade reference price dropped by INR 100-200/t to INR 31,600-32,000/t ex-plant.
• ERW Pipe manufacturers have kept offers at firm level to INR 34,000/t ex-Raipur, INR 36,800-37,000/t ex-Mandi Gobindgarh & INR 34,000/t ex-Rourkela.

Reference prices as on 15th Jul’20

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