Indian DRI, billet and rebar update – 20 May

Spot trades in the Indian secondary steel market continued to notice a downward trend today. Prices have declined by up to INR 800/t ($14) on d-o-d, basis.

As per the assessment, domestic billet prices have dropped by INR 100-1,000/t with a major fall of INR 800-1,000/t was noticed in Gujrat & Jharkhand, however a marginal hike of INR 100/t was seen in Raipur. Sponge iron offers have fallen by INR 100-400/t across locations, however, a sharp downfall in prices was seen in southern India.

In context to finish long, the rebar prices have declined by INR 100-700/t.

Manufacturers in major markets stated trade volumes remained less than expectations. They also mentioned that, due to lockdown, the lifting of material remained poor for inter-state deliveries.

Raw Material

• Odisha based sponge manufacturer booked 5,000 t RB2 coal at INR 7,200/t ex- Vishakhapatnam port.
• Bellary based sponge manufacturer booked around 15,000 t RB2 coal at INR 7,300-7,400/t ex- Krishnapatnam port.
• Jsw Ispat Special Products Limited concluded few deals of 60-14 silico manganese for Odisha at INR 89,500/t exw Raipur- Officials.

Semi Finished

• Induction grade billet export offers hovering at $580-585/t exw Durgapur, equivalent to $605-610/t CPT Nepal.
• Sponge P-DRI offers stable in Raipur at INR 30,000-30,200/t exw, however deals reported at INR 29,700-30,000/t on exw & FoR basis.
• Jharsuguda, Odisha based sponge supplier offered FeM 79 P-DRI at around INR 29,700-29,800/t FoR Raipur.
• Karnataka based steel manufacturer concluded billet export deal of around 10,000 t at $682/t FoB India, Size – 130×130 mm, 5sp.
• Sambalpur, Odisha based billet supplier concluded billet deals of around 1,500 t at around INR 41,700/t exw. Sources reported bookings are done for Raipur & nearby local region.
• Jajpur, Odisha based sponge manufacturer sold around 500 t C-DRI mix material to Mandi Gobindgarh at INR 30,200/t exw and freight cost cited at INR 3,200/t via road.
• Ind Synergy offered P-DRI at INR 29,300/t & billet at INR 42,000/t exw Raigarh.
• Jharkhand Ispat offered C-DRI mix (60:40) at INR 30,000/t and billet at INR 42,700/t exw Ramgarh.
• Bhaskar Steel and Ferro Alloy Ltd has offered billet at INR 42,000/t exw Badtumkela. (Down by INR 500/t).
• Hare Krishna concluded few deals of FeM 79-80 C-DRI lumps in local region at INR 30,500/t exw Bellary.
• BMM Ispat offered FeM 80 P-DRI lumps at INR 29,500/t exw Bellary (Down by INR 700/t).

Rebar (12 mm)

• GK TMT offers stable at INR 49,000/t exw Raipur.
• Shrishtii TMT offers reported at INR 47,300/t exw Raigarh (Up by INR 300/t).
• Metalics 550D TMT offers reported at INR 48,000/t exw Sambalpur (Up by INR 200/t).
• Rathi Stelmax TMT is offering at INR 50,075/t exw Delhi/NCR (Down by INR 275/t).
• Century TMT is offering at INR 49,200 exw Muzaffarnagar (Down by INR 200/t).
• Mono TMT is offering at INR 51,200/t FoR Ahmedabad (Down by INR 1,000/t).
• Kalika TMT offer stable at INR 50,600/t exw Jalna.
• VRKP TMT offer reported at INR 50,900/t exw Bangalore.

Wire Rod and Structure

• Trade reference wire rod prices in Raipur increased by INR 300/t to INR 45,800-46,000/t exw. However, prices in Durgapur unchanged at INR 47,000-47,300/t exw.
• Raipur based heavy structure steel manufacturers, kept stable the base price of 150 mm channel at INR 48,000/t, and maintained trade discount at INR 1,200-1,400/t, current trade reference price of 200 mm angle is at INR 49,500-49,800/t exw.

Reference prices as on 20th May’21