Indian DRI, billet and rebar update – 2 Aug

Spot trading activity in the Indian secondary steel market remained active on 2 Aug’21 as prices increased by up to INR 400/tonne (t) ($5/t) d-o-d.

As per SteelMint’s assessment, Indian sponge iron offers increased by INR 100-200/t across the country. However, domestic billet prices fluctuated by INR 100-200/t in most of the major markets.

Induction furnace-route rebar prices moved up by INR 100-400/t in many locations with a major hike of INR 400/t seen in the Bangalore market.

Prices remained supportive as semi-finished steel producers have sufficient orders in hand and due to low conversion (margins), suppliers have held prices strong, SteelMint notes.

Raw material

• Jharsuguda based pellet maker sold around 4,000 t raw pellets in local region at INR 14,600/t exw

Semi finished

• Induction grade (IF) billet export offers stable at around $585/t, exw-Durgapur (equivalent to $610-615/t CPT Nepal).
• Sponge P-DRI prices in Raipur up by INR 100/t & trades reported at around INR 30,700/t exw & FoR Raipur.
• Neo Metaliks in Durgapur has further raised steel grade pig iron offers by INR 200/t to INR 39,200/t exw.
• Jharsuguda, Odisha based sponge supplier offered FeM 80 P-DRI at around INR 30,700-30,800/t exw.
• BMM Ispat offered FeM 80 P-DRI lumps at INR 29,300/t exw Bellary.
• BIOP Steels in South India has sold around 500 t FeM 80 C-DRI lumps in nearby market at INR 30,500/t exw Bellary. Later on offers increased to INR 30,700/t exw.

Rebar (12 mm)

• Shrishtii TMT offers reported at INR 45,800/t exw Raigarh.
• Rathi Stelmax TMT offers stable at INR 48,500/t exw Delhi/NCR.
• Century TMT is offering at INR 47,000/t exw Muzaffarnagar (Up by INR 200/t).
• Mono TMT is offering at INR 50,000/t FoR Ahmedabad (Up by INR 200/t).
• Polaad TMT kept offers stable at INR 48,700/t exw Jalna.
• Brahma TMT offers reported at INR 45,800/t exw Durgapur.
• Metalics 550D TMT offers reported at INR 47,200/t exw Sambalpur (Up by INR 500/t).

Wire rod and structure

• Mid scale mills wire rod export offers reported at $620-625/t exw Durgapur, equivalent to $650/t CPT Nepal, via road delivery.
• Trade reference wire rod prices in Raipur rose by INR 200/t to INR 46,700-46,900/t exw, due to increase in base offers. However, assessment prices in Durgapur unchanged at INR 46,000-46,300/t exw.
• Raigarh based Singhal Steel concluded around 500 t deals of wire rod at INR 46,500/t exw.
• Heavy structural steel, base price of 150 mm channel increase by INR 400/t to INR 47,600/t in Raipur with firm trade discount of INR 600-800/t. Trade reference price of 200 mm angle is at INR 49,600-50,000/t exw.

Reference prices as on 2nd Aug’21