Indian DRI, billet and rebar update – 7 Jan

Indian secondary steel market continued to observe a downtrend today as well and prices have declined by up to INR 700/t ($10), on d-o-d basis.

As per SteelMint’s assessment, sponge iron and billet prices have dropped by INR 100-700/t. Also, rebar prices have declined by INR 100-600/t in most of the locations, however, central (Raipur) and southern (Chennai) markets were supportive as prices have slightly moved up by INR 200/t.

Trade sources stated that buyers are still cautious for procurement as prices have been dropping rigorously in the last 2-3 days and they are awaiting for clarity on market trends. Market sentiments are mixed as global prices have remained strong while domestic secondary market remains weak.

Raw Material

• Karnataka based BMM Ispat offered raw pellets at INR 11,900/t exw Bellary.
• Odisha based sponge manufacturer booked 10,000 t Rb2 coal at INR 5,600/t from Gangavaram port.

Semi Finished

• Induction grade billet export offers drop sharply by $10-15/t to $540/t exw Durgapur, equivalent to $565/t CPT Nepal, via road delivery. However no major inquiries, as per participants.
• Raipur based sponge manufacturers have reduced P-DRI offers by INR 300/t to INR 26,300-26,500/t, however few bids reported at around INR 26,000/t exw.
• Neo Metaliks in Durgapur has lowered steel grade pig iron price by INR 200/t to INR 36,000/t exw, meanwhile no fresh deals, as per officials.
• Visa Steels kept offers unchanged for steel grade pig iron at INR 36,000/t exw Jajpur.
• Viraj Steel & Energy Ltd offered FeM 80 C-DRI at INR 27,000/t exw Jharsuguda.
• Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI lumps at INR 26,700/t & billet at INR 39,700/t exw Badtumkela.
• Odisha based Rungta Sponge iron plant offered FeM 78 C-DRI mix (60:40) at INR 25,800/t exw Barbil, as per sources.
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 27,200/t exw Bellary.
• BMM Ispat has kept offers unaltered for FeM 80 P-DRI lumps at INR 27,000/t exw Bellary. However no deals reported from officials.

Rebar (12 mm)

• BS TMX TMT offers reported at INR 44,400/t exw Raigarh.
• Rathi Stelmax TMT is offering at INR 46,500/t exw Delhi/NCR (Down by INR 250/t).
• Mono TMT offers reported at INR 48,550/t FoR Ahmedabad (Down by INR 300/t).
• Polaad TMT unchanged offers at INR 49,400/t exw Jalna.
• Reliable TMT offers reported at INR 45,000/t exw Rourkela.
• ARS 550 D offer assessed at INR 52,800/t exw Chennai.

Wire Rod and structure

• Mid scale mills wire rod export offers plunged by $5/t to $640/t exw Durgapur, equivalent to $665/t CPT Nepal, however demand remains weak as buyers eyeing for lower offers.
• Trade discounts in Raipur wire rod stable at INR 1,000-1,200/t and base offers drop by INR 500/t to INR 46,500/t exw. Also, in Durgapur base prices fell by INR 500/t to INR 46,000/t exw.
• Raipur based heavy structure manufacturers, kept stable their base price at INR 45,500/t and maintained trade discount by INR 1,200-1,500/t, current trade price of 200 Angle is at INR 47,200-47,600/t exw.

Reference prices as on 7th Jan’21