Indian DRI, billet and rebar update – 17 Feb

India’s secondary steel market remained bullish with prices rising sharply by INR 200-1,500/t (up to $21), d-o-d.

As per SteelMint’s assessment, sponge iron prices have increased by INR 200-900/t and billet by INR 500-1,500/t, however a major price hike of around INR 1,100-1,500/t in billet was registered at major markets (Raipur, Raigarh, Gujarat, Jalna and Hyderabad). Also, rebar offers surged by INR 500-1,300/t in many regions.

The manufacturers in major markets have reported good demand & sufficient orders in hand, however due to a significant surge in prices, the participants are worried whether the prices will sustain or not.

Raw Material

• BMM Ispat sold around 5,000 t pellets in nearby market at INR 10,800/t exw Bellary

Semi Finished

• Induction grade billet export offers gain by $10/t to $500/t exw Durgapur, equivalent to $525/t CPT Nepal.
• Raipur based sponge P-DRI manufacturers have raised offers by INR 500-700/t, d-o-d, & deals reported at INR 24,800-25,000/t exw.
• Durgapur based Neo Metaliks has further raised steel grade pig iron price by INR 700/t to INR 33,700/t & deals reported at INR 33,500-33,700/t exw.
• Raigarh based Singhal Steel offered billet at INR 36,200/t exw (Up by INR 900/t).
• Jharkhand based Rungta Sponge iron plant concluded deals of around 2,400 t FeM 78 C-DRI mix (60:40) at INR 25,000/t exw Chailma.
• Rourkela based manufacturer, Mahavir Ferro Alloys offered billet at INR 36,000/t exw (Up by INR 500/t).
• Wada (Maharashtra) based mills sourcing FeM 80 C-DRI lumps from Bellary at around INR 26,500/t on FoR basis.
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 24,800/t exw Bellary (Up by INR 200/t).
• BMM Ispat offered FeM 80 P-DRI lumps at INR 24,600/t exw Bellary & around 3,000 t deals reported in nearby region.

Rebar (12 mm)

• BS TMX offers reported at INR 41,500/t exw Raigarh (Up by INR 1,100/t).
• Wonder Gold TMT offers assessed at 41,200/t exw Muzaffarnagar (Up by INR 1,000/t).
• Mono TMT is offering at INR 44,000/t FoR Ahmedabad (Up by INR 700/t).
• Polaad TMT offers concluded at INR 44,500/t exw Jalna (Up by INR 500/t).

Wire Rod and Structure

• Mid scale mills wire rod export offers surged by $15/t to around $560/t exw Durgapur, equivalent to $585/t CPT Nepal.
• Trade discounts in Raipur wire rod drop to INR 400-600/t, following which trade reference price rose by INR 1,300/t to INR 40,900-41,000/t exw. Also, prices in Durgapur rally by INR 1,000/t to INR 40,300-40,500/t exw.
• Raipur based heavy structure steel manufacturers, increase base price by INR 1,200/t to INR 41,500/t and given trade discount by INR 600-1,000/t, current trade reference price of 200 mm Angle is at INR 43,600-44,000/t exw.

Reference prices as on 17th Feb’21