Indian DRI, billet and rebar update – 25 Jun

Spot trading activity in the Indian secondary steel market remained subdued on 25 Jun’21, with prices falling by up to INR 500/t ($7) day-on-day.

As per SteelMint assessment, semi-finished steel (sponge iron and billet) offers fell in the range of INR 100-500/t in many regions of the country, with a major drop of INR 500/t witnessed in the billet markets in eastern and southern India.

Moreover, induction furnace grade rebar prices declined by INR 100-500/t across markets in the country. Markets in northern and eastern India witnessed a significant downslide in rebar prices to the tune of INR 500/t, as per SteelMint reports.

Poor finished steel offtake during the rainy season is triggering a constant decline in prices, SteelMint learnt from sources.

Raw material

• Karnataka based BMM Ispat sold around 10,000-12,000 t pellets in nearby market at INR 12,800/t exw Bellary since yesterday.

Semi finished

• Induction grade billet export offers hovering at $550/t exw Durgapur, equivalent to $575-580/t CPT Nepal, via road delivery.
• Neo Metaliks in Durgapur has kept steel grade pig iron offers firm at INR 38,000/t exw.
• Sponge P-DRI prices in Raipur drop by INR 300/t and deals reported at around INR 29,900-30,000/t against offers of INR 30,100-30,200/t exw & FoR Raipur.
• Jharsuguda, Odisha based sponge supplier offered FeM 79 P-DRI at around INR 30,000/t FoR Raipur (Down by INR 400).
• Jharkhand, Chailma based Sponge iron plant concluded deals of around 1,300 t FeM 78 C-DRI mix (60:40) at INR 30,500/t exw.
• Sources reported Chandrapur (Maharashtra) based manufacturers offered sponge P-DRI (FeM 80) at INR 30,000/t exw.
• BMM Ispat offered FeM 80 P-DRI lumps at INR 28,300-28,500/t exw Bellary. However no deals reported from officials.
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 28,500/t exw Bellary (Down by INR 300/t).

Rebar (12 mm)

• GK TMT(Fe 500D) is offering at INR 47,200/t exw Raipur (Down by INR 300/t).
• BS TMX offers reported at INR 44,000/t exw Raigarh (Down by INR 500).
• Metalics 550D TMT offers reported at INR 45,500/t exw Sambalpur.
• Rathi Stelmax TMT is offering at INR 47,650/t exw Delhi/NCR (Down by INR 600/t).
• Century TMT offers reported at 46,200/t exw Muzaffarnagar (Down by INR 400/t).
• Icon TMT is offering at INR 44,200/t exw Durgapur.
• Mono TMT is offering at INR 48,000/t FoR Ahmedabad (Down by INR 300/t).
• Polaad TMT kept offer stable at INR 47,000/t exw Jalna.

Wire rod and structure

• Mid scale mills wire rod export offers stood at around $600/t exw Durgapur, equivalent to $625-630/t CPT Nepal, via road delivery.
• Trade reference wire rod prices in Raipur dropped by INR 100/t to INR 44,700-44,900/t exw, due to fall in base price. However, prices in Durgapur down by INR 400/t to INR 43,700-44,000/t exw.
• Raipur based heavy structure steel manufacturers, reduce the base price of 150 mm channel by INR 400/t to INR 45,800/t and given trade discount by INR 600-800/t. Trade reference prices of 200 mm angle are at INR 48,000-48,400/t exw.

Reference prices as on 25th June’21