Indian DRI, billet & rebar update- 24 July’20

Indian spot steel prices were strong due to shortage of raw material and rising sponge iron prices along with improved demand in billets. According to SteelMint’s daily assessment Indian sponge iron prices increased by INR 300-600/t across major locations.

Also, billet prices increased by INR 100-1,000/t, sharp hike was noticed in southern region (Hyderabad) whereas rebar prices also moved up by INR 100-900/t.

As per SteelMint participants, the shortage of iron ore has been observed as most of the auctioned mining leases in Odisha are yet to resume operations.

Raw material

• Odisha based sponge manufacturer booked 10,000 t Rb2 coal (SP-54) at INR 4,200/t from Vizag port.
• BMM Ispat located in Bellary, Karnataka sold around 10,000 t pellets in Hyderabad market at INR 5,800/t EXW.
• Silicon manganese offers reported at INR 60,000/t ex-Raipur.

Semi Finished

• Mid scale mills billet export offers increased at $365-367/t ex-mill at Durgapur, equivalent to $395/t CPT Nepal, via road delivery.
• Visa Steels concluded deals of around 800 t steel grade pig iron at INR 24,200/t EXW Jajpur.
• Haq Steel & Metaliks Ltd based in Samakhiyali, Gujarat is offering 80 FeM P-DRI at INR 17,800/Mt EXW.
• Durgapur based Kajaria Iron has raised steel grade pig iron prices by INR 300-500/t d-o-d to INR 25,300-25,500/t EXW. Also another private producer – Neo Metaliks has increased offers by INR 400/t to INR 25,200/t ex-plant.
• Raipur based major sponge P-DRI manufacturers have increased offers by INR 500/t to INR 17,300-17,500/t, however majority of deals learned at INR 17,200-17,400/t, EXW.
• Singhal Steel offered billet at INR 28,200/t ex-Raigarh.
• Ind Synergy (Raigarh) offered P-DRI at INR 16,700/t & billet at INR 28,200/t ex-Raigarh.
• BIOP Steels in South India has increased sponge prices by INR 300/t, offering FeM 80 & 82 C-DRI lumps at INR 16,400/t & INR 16,800/t EXW, Karnataka.
• Southern India, Bellary based Aone Steel has concluded around 2,000 t Sponge C-DRI deal for Hyderabad & Goa region at around INR 16,500/t EXW.
• BMM Ispat increased sponge pellet offers by INR 400-500/t to INR 16,400/t ex-Bellary & around 3,000 t deals reported in nearby region.

Rebars (12 mm)

• Paras TMT is offering at INR 32,500/t EXW Muzaffarnagar.
• GK TMT offering at INR 33,700/t EXW Raipur (Up by INR 200/t).
• Radhe TMT offers at INR 31,200/t EXW Raigarh.
• Guardian TMT is offering at INR 31,500/t EXW Mumbai (Up by INR 300/t).
• Bhagyalaxmi Rolling Mill Pvt. Ltd. (Polaad TMT) have sold around 3,000 t of rebar today at INR 32,200/t EXW Jalna.
• Gujarat based German TMX BRAND rebars is offering at INR 38,700/t (Size 20 mm, incl tax) Exw.
• Bajrangbali Steel Industries Pvt Ltd is offering rebar at INR 31,200/t EXW Rourkela.
• Odisha based Shubhlabh TMT offers reported at INR 31,400/t EXW.
• Scan Group (Shrishti TMT) is offering at INR 31,600/t EXW Raigarh.
• Aone Steel (A one Gold TMT) is offering at INR 42,000/t (Size 8 mm, Incl GST).
• Trade discount by Raipur based heavy structure manufacturers maintained at INR 500-800/t and trade price of 200 Angle is at INR 35,000-35,300/t EXW.

Wire Rod & Pipe

• ERW Pipe manufacturers have increased offers by INR 400-600/t to INR 34,000-34,200/t ex-Raipur.
• Trade discounts in Raipur wire rod stood at INR 500-700/t through the traders, however base price rally by manufacturers by INR 800/t to INR 32,800/t EXW. Also in Durgapur, trade reference prices up by INR 300/t to INR 31,400-31,800/t EXW.

Reference price as on 24th Jul’20