Indian DRI, billet & rebar update- 23 July ’20

Indian steel prices moved up today on account of improved trades & hike in raw material prices. As per daily assessment Indian sponge iron prices increased by INR 100-400/t in which major hike was noticed in central & eastern India by INR 300-400/t.

In addition to that billet prices also increased by INR 100-600/t & rebar prices by INR 100-500/t, d-o-d in major markets.

Sources expect semi-finished steel prices to remain supported due to short supply of raw material & sponge along with hike in prices.

Raw material

• Singhal Steel, Raigarh based manufacturer has offered 60-14 silico manganese at INR 61,000/t EXW.
• Odisha based sponge manufacturer booked 5000t Rb3 coal at INR 3,500/t from Gangavaram port.

Semi Finished

• A trade source reported, one rake of sponge iron lumps exported to Nepal from Jharkhand at $226/t ex-mill.
• As per Rourkela based mills, billet deals concluded for Mandi Gobindgarh – Punjab at INR 27,200/t (ex-mill), freight cost via road is about INR 2,900/MT.
• Aloke Steel Industries (Jharkhand) offered Fem 78-80 C-DRI lumps at INR 17,900/t & sponge mix material (60:40) at INR 17,500/t EXW.
• Singhal Steel offered billet at INR 27,700/t ex-Raigarh.
• Ind Synergy (Raigarh) offered P-DRI at INR 16,300/t & billet at INR 27,600-27,700/t ex-Raigarh.
• BIOP Steels in South India has kept offers unaltered; offering FeM 80 & 82 C-DRI lumps at INR 16,100/t & INR 16,400/t EXW, Karnataka.
• BMM Ispat increased sponge pellet offers by INR 100/t to INR 15,800-15,900/t ex-Bellary & around 1,000 t deals reported in nearby region.
• Raipur based major sponge P-DRI manufacturers have increased offers by INR 300-400/t to INR 16,800-900/t ex-plant and about 4,000-5,000 t deals reported, while offers by mid sized plants learned at INR 17,000/t ex-plant.
• About 1,000 t sponge DR-CLO bookings reported by Jalna, Maharashtra based a major mill at an average price of INR 18,400/t ex-plant, Raipur.
• Pig iron prices remained strong in central India & fresh offers assessed at INR 25,500-600/t FoR Raipur & INR 25,300-400/t FoR Raigarh.
• Neo Metaliks has kept steel grade pig iron offers firm at INR 24,700-800/t ex-Durgapur.

Rebars (12 mm)

• Paras TMT is offering at INR 32,200/t EXW Muzaffarnagar (Up by INR 200/t ).
• GK TMT is offering at INR 33,500/t EXW Raipur (Up by INR 400/t).
• Guardian TMT is offering at INR 31,200/t EXW Mumbai (Up by INR 100/t).
• Kalika TMT offering at INR 31,700/t EXW Jalna (Up by INR 200/t).
• Thirumala Fe 550 is offering at INR 36,000 EXW Chennai.
• Trade discount by Raipur based heavy structure manufacturers maintained at INR 600-800/t and trade price of 200 Angle is at INR 34,400-34,800/t EXW.
• Bajrangbali Steel Industries Pvt Ltd is offering rebar at INR 30,700/t EXW Rourkela.
• Odisha based Shubhlabh TMT offers reported at INR 30,400/t EXW.
• Scan Group (Shrishti TMT) is offering at INR 30,900/t EXW Raigarh.

Wire Rod & Pipe

• ERW Pipe manufacturers have increased offers by INR 100/t to INR 33,600/t ex-Raipur, INR 37,000/t ex-Mandi Gobindgarh & INR 33,500/t ex-Rourkela.
• Trade discounts in Raipur wire rod firm at INR 600-800/t through the traders, however base price by manufacturers increased by INR 300/t to INR 32,000/t ex-plant. Also in Durgapur, trade reference prices up by INR 300/t to INR 31,100-31,500/t ex-plant.

Reference prices as on 23rd Jul’20

Source: SteelMint Research