Indian DRI, billet and rebar update – 28 Jan

Indian secondary steel market sentiments remained dull today with prices falling by INR 900/t ($12), d-o-d.

As per SteelMint’s assessment, sponge iron prices have dropped by INR 100-200/t and billet prices by INR 100-700/t across the markets with Mumbai and Ahmedabad witnessing a major fall by INR 600-700/t. Also, rebar prices declined by INR 100-500/t in many regions with a sharp fall of around INR 900/t in Jalna, Maharashtra.

Sources are expecting that spot trades may continue to remain dull on account of weak market trends along with supply-demand mismatch.

Semi Finished

• Induction grade billet export offers drop by $5/t to $485/t exw, equivalent to $510/t CPT Nepal. Meanwhile as per participants, demand remains limited on assumption of further fall in prices.
• Raipur based sponge P-DRI manufacturers have maintained offers firm at INR 24,100-24,200/t, however bids reported at around INR 24,000/t exw.
• Neo Metaliks in Durgapur has reduced steel grade pig iron offer by INR 500-600/t to INR 33,000/t exw, however demand remains weak, as per officials.
• Visa Steels concluded deals of around 500 t steel grade pig iron in local region at INR 33,000/t exw Jajpur.
• Raigarh based Singhal Steel offered billet at INR 35,200/t exw.
• JSW Ispat Special Products Limited sold around 600 t sponge P-DRI at INR 23,800/t exw Raipur- Officials.
• Rourkela based manufacturer, Mahavir Ferro Alloys offered billet at INR 35,500/t exw. However no deals reported from officials.
• Odisha based Rungta Sponge iron plant concluded deals of around 2,600 t FeM 78 C-DRI mix (60:40) at INR 23,000/t exw kasira.
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 23,800/t exw Bellary.
• BMM Ispat offered FeM 80 P-DRI lumps at INR 23,300-23,500/MT exw Bellary & around 3,000 t deals reported in nearby region.

Rebar (12 mm)

• GK TMT kept offers stable at INR 42,400/t exw Raipur.
• BS TMX offers unchanged & reported at INR 39,800/t exw Raigarh.
• Century TMT is offering at INR 39,400/t exw Muzaffarnagar (Down by INR 300/t).
• Mono TMT unchanged their offer at INR 46,150/t FoR Ahmedabad.
• Kalika TMT is offering at INR 44,600/t exw Jalna (Down by INR 900/t).

Wire Rod and Structure

• Mid scale mills wire rod export offers declined by $5-10/t to $540/t exw Durgapur, equivalent to $565/t CPT Nepal.
• Trade discounts in Raipur wire rod up by INR 300/t, following which trade reference price went down by INR 200/t to INR 39,200-39,400/t exw. Also prices in Durgapur fell by INR 200/t to INR 39,600-39,800/t exw.
• Raipur based heavy structure manufacturers, increase their base price by INR 300/t to INR 41,300/t, and given trade discount by INR 900-1,200/t, current trade reference price of 200 mm Angle is at INR 43,000-43,400/t exw.

Reference prices as on 28th Jan’21