Indian DRI, billet & rebar update- 6th Oct

Indian secondary steel market remained on a positive note as prices went up today by INR 100-500/t in semis & finished long steel products.

As per SteelMint’s assessment, sponge iron prices rallied by INR 100-300/t & billet by INR 100-500/t across the majority of the markets. Also, rebar prices increased by INR 100-500/t in most of the regions.

Sources in the central India, Raipur reported some supply shortage of billet as few hot rolling mills have reduced billet supply in the merchant market. Also, there are sufficient orders among sponge producers, hence assumptions are high for further support in price range.

Raw Material

• Silicon manganese (60-14) prices remain firm in Raipur at INR 60,000-60,500/t exw.
• BMM Ispat located in Bellary, Karnataka sold around 5,000 t pellets in nearby market at INR 7,700/t exw.

Semi Finished

• Induction grade billet export offers stable at around $403-405/t exw Durgapur, equivalent to $430/t CPT Nepal, via road delivery.
• Raipur based major sponge manufacturers have traded P-DRI at INR 19,300-19,500/t exw. Also, few deals learned at around INR 19,600/t on FoR Raipur basis from outside plants.
• Jindal Steel in Raigarh (central India) reported around 2,500 t steel grade pig iron deals at INR 27,000/t exw, yesterday.
• Ind Synergy (Raigarh) offered P-DRI at INR 18,900/t exw (Up by INR 200/t).
• Durgapur based Neo Metaliks has further raised steel grade pig iron price by INR 500/t to INR 28,000/t exw.
• Visa Steels offered FeM 80 sponge C-DRI (mix material) at INR 19,600/t exw Jajpur (Up by INR 300/t).
• Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI lumps at INR 19,800/t & billet at INR 29,400/t exw.
• BMM Ispat increased offers by INR 100-200/t for FeM 80 P-DRI lumps to INR 18,300-18,500/t exw Bellary & around 5,000 t deals reported in nearby region.
• BIOP Steels in South India has offered FeM 80 & 82 C-DRI lumps at INR 18,900/t & INR 19,300/t exw.

Rebar (12 mm)

• GK TMT is offering at INR 35,100/t exw Raipur (Up by INR 300/t).
• Shrishtii TMT offers reported at INR 33,000/t exw Raigarh (Down by INR 200/t).
• Century TMT raised offers at INR 34,500/t exw Muzaffarnagar (Up by INR 100/t).
• Mono TMT is offering at INR 34,500/t FoR Ahmedabad (Up by INR 200/t).
• Polaad TMT offers at INR 34,300/t exw Jalna (Up by INR 200/t).
• Sangam TMT offers stable at INR 33,600/t exw Wardha.

Wire Rod, Pipe & Structure

• Mid scale mills wire rod export offers unchanged at $446-448/t exw Durgapur, equivalent to $475/t CPT Nepal.
• Trade discount increases in Raipur wire rod by INR 200/t to INR 1,000/t, also base price up by INR 300/t to INR 34,300/t exw. However, in Durgapur trade reference price stable at INR 32,800-33,300/t exw.
• Raipur based heavy structure manufacturers have increase their offers by INR 500/t and maintained trade discount at INR 700-1,000/t, the current trade price of 200 Angle stood at INR 36,600-37,000/t exw.

Reference prices as on 6th Oct’20