Indian DRI, billet and rebar update – 15 Feb

Indian secondary steel market has noticed a sharp hike in prices today by up to INR 1,400/t ($20), d-o-d.

Trade sources shared with SteelMint that, the prices surged after the recent notification issued by the Ministry of Steel’s (MoS), the Ministry of Road Transport & Highways (MoRTH) which says that the steel produced from ore/billets/pellet/melting of scrap” can be supplied for government-funded road, flyover and highway projects. This uplifted sentiments in India’s secondary steel segment.

As per SteelMint’s assessment, sponge iron and billet prices have increased by INR 200-1,400/t in most of the regions, however a major hike was observed of around INR 1,100-1,400/t in Northern, Western and Eastern parts of India. Also, rebar prices have moved up by INR 100-900/t across major locations.

Raw Material

• BMM Ispat sold around 5,000 t pellets in nearby market at INR 10,300/t exw Bellary.

Semi Finished

• Raipur based sponge P-DRI manufacturers have mentioned good demand on floated offers at INR 24,000-24,200/t exw.
• Sources reported, few parcels of Induction grade billet export deals at $485-490/t exw Durgapur, equivalent to $510-515/t CPT Nepal.
• Durgapur based Neo Metaliks has kept steel grade pig iron prices unchanged at INR 32,500/t exw & deals reported in local market.
• Rourkela based manufacturer, Mahavir Ferro Alloys offered billet at INR 35,200/t exw. (Up by INR 500/t).
• Hare Krishna concluded deals of FeM 79-80 P-DRI lumps in local region at INR 23,500/t exw Bellary. Later on offers increased to INR 24,000/t exw.
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 21,800/t exw Bellary (Up by INR 500/t).
• BMM Ispat offered FeM 80 P-DRI lumps at INR 23,600/t exw Bellary & around 5,000 t deals reported in nearby region.

Rebar (12 mm)

• GK TMT is offering at INR 42,300/t exw Raipur (Up by INR 500/t).
• BS TMX TMT offers reported at INR 39,500/t exw Raigarh (Up by INR 500/t).
• Shubhlabh TMT offers assessed at INR 39,400/t exw Rourkela.
• Century TMT offers concluded at INR 40,200/t exw Muzaffarnagar (Up by INR 700/t).
• Mono TMT is offering at INR 43,100/t FoR Ahmedabad (Up by INR 800/t).
• Kalika TMT is offering at INR 43,800/t exw Jalna (Up by INR 200/t).

Wire Rod and Structure

• Mid scale mills wire rod export offers hovering at $535-540/t exw Durgapur, equivalent to $560-565/t CPT Nepal.
• Trade discounts in Raipur wire rod drop by INR 500/t to INR 800-1,000/t, following which trade reference price rose by INR 1,200/t to INR 39,200-39,400/t exw. Also, prices in Durgapur surged by INR 800/t to INR 39,000-39,300/t exw.
• Raipur based heavy structure steel manufacturers, increase their base price by INR 800/t to INR 40,300/t and given trade discount by INR 700-1,000/t, current trade reference price of 200 mm Angle is at INR 42,200-42,600/t exw.

Reference prices as on 15th Feb’21