Indian secondary steel market sentiments turned supportive in the second half today after NMDC raised iron ore prices. The steel prices have gained upto INR 1,100/t ($15) on d-o-d basis.
As per the assessment, the domestic sponge iron market has noticed a boost in prices by INR 100-1,100/t with a major increase of INR 800-1,100/t in Raipur (Central India). Meanwhile, billet offers have raised by INR 100-400/t in many regions except Durgapur & Hyderabad where prices have plunged by INR 100-500/t, respectively.
In addition to this, the rebar prices have also moved up by INR 100-300/t across the major markets, whereas, prices have slightly declined by INR 100/t in Hyderabad.
The participants in Central India have now turned optimistic due to gain in raw material (Iron ore & pellet) prices, hence do not foresee prices to fall. Prices are less likely to drop on account of fall in conversion spread (margins) of standalone plants.
Semi Finished
- Induction grade billet export offers unchanged at $545-550/t exw Durgapur, equivalent to $575/t CPT Nepal.
- Indian sponge iron export deals concluded to Bangladesh at around $425/t CPT Benapole, equivalent to $440/t CFR Chittagong.
- Sponge P-DRI offers in Raipur registered sharp gain by INR 1,000-1,100/t to INR 30,300-30,500/t, however deals reported at INR 30,200-30,300/t exw.
- Durgapur based Neo Metaliks has kept steel grade pig iron price firm at INR 39,000/t exw, however no major deals, as per officials.
- Jharsuguda, Odisha based sponge supplier sold around 1,000 t FeM 80 P-DRI at around INR 29,700-29,800/t FoR Raipur. Later on manufacturers are holding sales to maintain margins and supply-demand chain.
- Jajpur based, Visa Steels concluded deals of around 500 t steel grade pig iron in local region at INR 38,300/t exw & offered FeM 80 sponge C-DRI (mix material) at INR 29,000/t exw.
- Raigarh based steel manufacturers getting pig iron offers from Odisha at INR 39,300-39,500/t FoR Raigarh.
- Raigarh based Singhal Steel offered billet at INR 40,500/t exw (Up by INR 500/t).
- BMM Ispat offered FeM 80 P-DRI lumps at INR 27,700/t exw Bellary.
Rebar (12 mm)
- GK TMT offers stable at INR 47,700/t exw Raipur.
- Shrishtii TMT offers reported at INR 45,600/t exw Raigarh.
- Metalics 550D TMT offers reported at INR 47,000/t exw Sambalpur.
- Rathi Stelmax TMT offers unchanged at 47,200/t exw Delhi/NCR.
- SMS Durgapur TMT offers unchanged at INR 46,000/t exw Durgapur.
- Century TMT is offering at INR 45,700/t exw Muzaffarnagar (up by INR 200/t).
- Vinayak TMT is offering at INR 48,000/t FoR Ahmedabad (Up by INR 200/t).
- Kalika TMT offers reported at INR 49,400/t exw Jalna.
Wire Rod and Structure
- Mid scale mill wire rod export offers hovering at $605/t exw Durgapur, equivalent to $630/t CPT Nepal.
- Trade discounts in Raipur wire rod drop to around INR 500/t, following which trade reference price gain by INR 500/t to INR 45,500-45,700/t exw. Also, trade reference prices in Durgapur increased by INR 300/t to INR 45,300-45,400/t exw.
- Trade discount in heavy structure steel given by Raipur based manufacturers is at INR 1,200-1,500/t, and trade reference price of 200 mm angle is at INR 47,000-47,300/t exw.
Reference prices as on 14th Apr’21
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