Indian DRI, billet and rebar update – 26 May

Indian secondary steel market continued to notice downtrend today as well and prices have decreased by up to INR 1,300/t ($18) on a d-o-d basis.

As per the assessment, Indian semi-finished steel prices (including sponge iron & billet) have fallen by INR 100-1,300/t with a major price correction of INR 1,000-1,300/t seen in Southern & Western regions.

Also, rebar offers have declined INR 200-1,000/t in all the markets, with a major drop seen in Durgapur by INR 1,000/t on a d-o-d basis.

Sources based in Central & Eastern regions reported, increase in finished steel inventories with re-rollers, hence expecting prices to remain under pressure till the demand recovers.

Semi Finished

• Induction grade billet export offers stood at $560-565/t exw Durgapur, equivalent to $590/t CPT Nepal, via road delivery.
• Neo Metaliks in Durgapur has reported steel grade pig iron offers at INR 38,300-38,500/t exw.
• Sponge P-DRI offers unchanged through the Raipur based plants at INR 28,800/t exw, however deals reported at around INR 28,500-28,600/t on exw & FoR basis.
• Jharkhand Ispat Pvt. Ltd. offered billet at INR 41,200/t & sponge C-DRI mix (60:40) at INR 29,500/t exw Ramgarh.
• Jharsuguda, Odisha based sponge supplier offered FeM 79 P-DRI at around INR 28,700/t FoR Raipur.

Rebar (12 mm)

• GK TMT is offering at INR 47,500/t exw Raipur (Down by INR 1,000/t).
• Shrishtii TMT offers reported at INR 45,800/t exw Raigarh (Down by INR 200/t).
• Rathi Stelmax TMT is offering at INR 48,250/t exw Delhi/NCR (Down by INR 800/t).
• Swarup TMT offers reported at INR 47,000/t exw Muzaffarnagar (Down by INR 800/t).
• Vinayak TMT is offering at INR 49,300/t FoR Ahmedabad (Down by INR 600/t).
• Polaad TMT is offering at INR 49,000/t exw Jalna (Down by INR 1,500/t).

Wire Rod and Structure

• Mid scale mills wire rod export offers reported at $615-620/t exw Durgapur, equivalent to $645/t CPT Nepal, via road delivery.
• Trade discounts for wire rod in Raipur reduced & stands at INR 400-500/t, following which trade reference price went up by INR 200/t to INR 44,100-44,200/t exw. However, prices in Durgapur fell further by INR 600/t to INR 44,500-44,700/t exw.
• Raipur based heavy structure steel manufacturers, reduce the base price of 150 mm channel by INR 500/t to INR 46,500/t and given trade discount by up to INR 1,200/t. Current trade reference prices of 200 mm angle are at INR 48,200-48,600/t exw.

Reference prices as on 26th May’21