Indian DRI, billet & rebar update- 31st Aug

Indian secondary steel market has seen a sharp hike in prices today. Sponge iron prices increased by INR 300-900/t in all the regions. Whereas billet prices surged by INR 50-1,000/t in major markets with a major hike of about INR 1,000/t in Raipur & Hyderabad. Following the trend, rebar prices also moved up by INR 200-900/t in all the locations.

Sources are expecting the steel prices to remain supportive as raw material prices remain tight & global scrap prices are also on the higher side. Also, the prevailing positive trends on an expected hike in prices by primary mills, have kept sentiments positive.

Raw Material

• BMM Ispat sold around 15,000 t pellets in nearby market at INR 7,500-7,600/t exw Bellary.
• Singhal Steel, Raigarh based manufacturer has offered 60-14 silico manganese at INR 61,000/t exw.

Semi Finished

• Induction grade billet export offers increased by $10/t to around $413-415/t exw Durgapur, equivalent to $440/t CPT Nepal, via road delivery.
• Indian sponge iron (80 FeM, 100% lumps) export offers up by $5-10/t to $310-315/t CPT Benapole, equivalent to $335-340/t CFR Chittagong, Bangladesh.
• Raipur based major sponge manufacturers have raised P-DRI offers by INR 800-900/t to INR 20,100-20,200/t exw & total of around 3,000-4,000 t deals reported by 4-5 plants.
• Raigarh based Singhal Steel offered P-DRI at INR 19,800/t & Billet at INR 29,800/t exw.
• Ind Synergy (Raigarh) offered P-DRI at INR 19,800/t & billet at INR 30,000/t exw.
• Neo Metaliks in Durgapur has raised steel grade pig iron price by INR 500-600/t to INR 29,000/t exw & few deals reported in local market.
• Visa Steels offering steel grade pig iron at INR 28,000/t exw Jajpur (up by INR 400-500/t).
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 19,200/t exw Bellary (up by INR 300/t).
• BMM Ispat offered FeM 80 P-DRI lumps at INR 19,200-19,300/t exw Bellary & around 7,000 t deals reported in nearby region.

Rebar (12 mm)

• GK TMT is offering at INR 35,000/t exw Raipur (Up by INR 300/t).
• Shrishtii TMT offers reported at INR 33,200/t exw Raigarh (Up by INR 600/t).
• BS Sponge (BS TMX TMT) is offering at INR 32,800/t EXW Raigarh.
• Raigarh based sources reported Jindal TMT ISI 550 offers at INR 34,500/t exw (12 mm).
• Rathi Stelmax TMT offers at INR 35,900/t exw Delhi/NCR (Up by INR 500/t).
• Paras TMT is offering at INR 34,500/t exw Muzaffarnagar (Up by INR 200/t).
• Mono TMT have kept offers at INR 35,600/t FoR Ahmedabad (Up by INR 300/t).
• Jalna based Bhagyalaxmi Rolling Mill Pvt. Ltd (Polaad TMT) sold over 3,500 t of rebar at INR 34,200/t, later increased the offers by INR 300/t to 34,500/t exw.

Wire Rod & Pipe

• Mid scale mills wire rod export offers to Nepal rally and fresh offers stood at $452-454/t exw Durgapur, equivalent to $475-480/t CPT Nepal.
• Trade discount in Raipur wire rod further reduced to INR 500-700/t & base price increases by INR 700/t to INR 33,700/t exw. Also, in Durgapur trade reference price of wire rod rose by INR 700/t to INR 33,700-34,000/t exw.
• ERW Pipe manufacturers have increased offers by INR 300-700/t to INR 35,500-35,600/t exw Raipur, INR 38,500/t exw Mandi Gobindgarh & INR 35,700/t exw Rourkela.
• Hyderabad (South India) based manufacturer Hari Om Pipe Industries Ltd has offered ERW Pipe at INR 39,800/t exw.

Reference prices as on 31st Aug’20