Indian DRI, billet and rebar update – 22 Jun

The Indian secondary steel market witnessed dull sentiments today, with prices falling by up to INR 800/t ($11), day-on-day.

As per SteelMint assessment, semi-finished steel (sponge iron and billet) offers dropped by INR 100-700/t across many locations as even markets in northern and eastern India witnessed a significant fall in prices by INR 600-700/t.

Moreover, induction furnace grade rebar prices also decreased by INR 100-800/t in major markets, witnessing a sharp decline of INR 800/t in Raigarh and Durgapur.

SteelMint learnt that rebar inventories are piling up with manufacturers at major production hubs of the central, western and eastern regions. Hence, producers don’t have an option other than to cut production to match supply-demand.

Semi finished

• Induction grade billet export offers drop by $5-7/t to around $555/t exw Durgapur, equivalent to $580-585/t CPT Nepal, via road delivery.
• Neo Metaliks in Durgapur has reduced steel grade pig iron price by INR 200/t to INR 38,500/t exw.
• Sponge P-DRI prices in Raipur fall further by INR 200/t and deals reported at around INR 30,500/t against offers of INR 30,600-30,800/t exw & FoR Raipur.
• Jharsuguda, Odisha based sponge supplier offered FeM 79 P-DRI at INR 30,600-30,700/t FoR Raipur.
• Raigarh based Singhal Steel offered P-DRI at INR 29,700/t & Billet at INR 41,600-41,700/t exw.
• BMM Ispat offered FeM 80 P-DRI lumps at INR 28,700/t exw Bellary (Down by INR 300).

Rebar (12 mm)

• Metalics 550D TMT offers reported at INR 45,800/t exw Sambalpur (Down by INR 700).
• Rathi Stelmax TMT is offering at INR 48,500/t exw Delhi/NCR (Down by INR 750/t).
• Century TMT offers stable at 46,700/t exw Muzaffarnagar.
• CPC THERMEX TMT offers reported at INR 44,700/t exw Durgapur.
• Mono TMT is offering at INR 48,400/t FoR Ahmedabad (Down by INR 300/t).
• Polaad TMT kept offers stable at INR 47,500/t exw Jalna.

Wire rod and structure

• Mid scale mills wire rod export offers drop to $605/t exw Durgapur, equivalent to $630-635/t CPT Nepal, via road delivery.
• Trade reference wire rod prices in Raipur fell by INR 500/t to INR 45,000-45,300/t exw, on account of a drop in base price. Also, prices in Durgapur fell by INR 500/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 400/t to INR 46,500/t and maintained trade discount by INR 400-700/t. Trade reference prices of 200 mm angle are at INR 48,700-49,100/t exw.

Reference prices as on 22nd June’21