Indian DRI, billet and rebar update – 29 Jan

Indian secondary steel market sentiments continued to notice downward correction today with prices falling up to INR 1,500/t ($21), d-o-d.

As per the assessment, sponge iron prices have declined INR 200-600/t and billet prices by INR 600-1,500/t nationwide, with Muzaffarnagar and Ghaziabad observing significant declines of INR 1,400-1,500/t. Following the trends, rebar prices have also dropped by INR 300-1,000/t in many regions with a sharp fall of INR 1,000/t in Raipur, central India.

Industry sources stated, amidst limited demand the suppliers are in hurry to sell the material, which led to a significant drop in prices.

Semi Finished

• Induction grade billet export offers drop by $10/t to $475/t exw, equivalent to $500/t CPT Nepal. However demand remains weak, as per participants.
• Raipur based sponge P-DRI manufacturers have reduced offers by INR 200/t to INR 23,900-24,000/t exw, however few trades reported through outside plants at around INR 23,600/t on FoR Raipur basis.
• Neo Metaliks in Durgapur has further lower steel grade pig iron offers by INR 200/t to INR 32,800/t exw.

Rebar (12 mm)

• GK TMT is offering at INR 42,200/t exw Raipur (Down by INR 200/t).
• Century TMT offers assessed at INR 38,500/t exw Muzaffarnagar (Down by INR 700/t).
• Mono TMT is offers reported at INR 45,950/t FoR Ahmedabad (Down by INR 200/t).
• Kalika TMT is offering at INR 44,200/t exw Jalna (Down by INR 400/t).

Wire Rod and Structure

• Mid scale mills wire rod export offers fell by $5/t to $535/t exw Durgapur, equivalent to $560/t CPT Nepal.
• Trade discounts in Raipur wire rod sharply surged and reported at INR 2,000-2,200/t, following which trade reference price went down by INR 1,000/t to INR 38,000-38,400/t exw. Also prices in Durgapur fell by INR 800/t to INR 39,000/t exw.
• Raipur based heavy structure manufacturers, reduced their base price by INR 300/t to INR 41,000/t, and given trade discount by INR 1,100-1,500/t, current trade reference price of 200 mm Angle is at INR 42,600-43,000/t exw.

Reference prices as on 29th Jan’21