Indian DRI, billet and rebar update – 19 Apr

Indian secondary steel market continued to see a decline in offers today and the prices have dropped by upto INR 1,500/t ($20) on d-o-d basis.

As per SteelMint’s assessment, the domestic sponge iron and billet prices have dropped by INR 200-1,500/t in many regions with a major fall of INR 1,000-1,500/t being noticed in Ahmedabad & Mumbai, Western India.

Also, the trades in the rebar market were dull today and offers have fallen by INR 100-600/t across locations, except in Delhi/NCR, North India where offers rose by INR 700/t on day trade activities. Falling rebars production resulting in a slight fall in prices along with the drop in sponge iron & billet prices in major locations.

Raw Material

• Karnataka based BMM Ispat offered raw pellets at INR 12,500/t exw Bellary.

Semi Finished

• Induction grade billet export offers drop to around $550/t exw Durgapur, equivalent to $575-580/t CPT Nepal. However no major deals as buyers’ currently in wait & watch mode amidst expectation of further drop in prices.
• Sponge P-DRI price further dropped in Raipur by INR 500/t to INR 30,000/t exw and deals reported mostly on FoR basis from outside plants.
• Neo Metaliks in Durgapur has reduced steel grade pig iron price by INR 200/t to INR 38,800/t exw, however no major deals, as per officials.
• Jharsuguda, Odisha based sponge supplier offered FeM 80 P-DRI at around INR 30,000/t FoR Raipur.
• Raigarh based steel manufacturers getting pig iron offers from Odisha at INR 39,500/t FoR Raigarh.
• BMM Ispat offered FeM 80 P-DRI lumps at INR 28,800/t exw Bellary (Down by INR 200/t).
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 29,400-29,500/t exw Bellary.

Rebar (12 mm)

• Raigarh based sources reported Jindal TMT ISI 550 offers at INR 48,200/t exw (Down by INR 500/t).
• Metalics 550D TMT offers reported at INR 48,500/t exw Sambalpur.
• GK TMT kept offer stable at INR 50,000/t exw Raipur.
• Mono TMT offer unchanged at INR 51,600/t FoR Ahmedabad.
• Kalika TMT is offering at INR 53,000/t exw Jalna.
• ARS TMT(Fe 550 D) offer reported at INR 54,300/t exw Chennai.

Wire Rod and Structure

• Trade discount in Raipur wire rod increased to INR 1,500-2,000/t, following which trade reference price plunged by INR 1,000/t to INR 45,500-46,000/t exw. Also, prices in Durgapur went down by INR 600/t to INR 45,800-46,000/t exw.
• Mid scale mills wire rod export offers hovering at $615/t exw Durgapur, equivalent to $645-650/t CPT Nepal.
• Raipur based heavy structure steel manufacturers, reduce the base price of 150 mm channel by INR 500/t to INR 47,400/t, and given trade discount at INR 1,100-1,400/t, current trade reference price of 200 mm angle is at INR 49,100-49,500/t exw.

Reference prices as on 19th Apr’21