Indian DRI, billet and rebar update – 18 Aug

Spot trading activity in the Indian secondary steel market remained dull due to subdued demand on 18 Aug’21. The overall secondary steel commodity prices dropped by up to INR 400/t ($5), d-o-d.

As per SteelMint assessment, the Indian semi-finished steel market (including sponge iron and billet) declined by INR 100-400/t; however, a slight increase of INR 100/t was observed in Mandi Gobindgarh and Gujarat’s billet market.

Also, induction furnace (IF) route re-bar offers slipped by INR 100-300/t across the country. The Delhi and Durgapur re-bar markets recorded a major fall in prices by around INR 300/t.

Market participants are expecting prices of semi-finished steel to remain volatile as there are logistical concerns about raw materials along with prevailing higher coal and scrap prices globally. Though the market has seen a slight correction today, not much impact was observed as sellers still have sufficient bookings.

Raw material

• A Chandrapur (Maharashtra) based sponge iron manufacturer booked raw pellet from Bellary at INR 14,500/t FoR.

Semi finished

• Neo Metaliks in Durgapur has kept steel grade pig iron offers stable at INR 39,500/t exw.
• Sponge P-DRI offers in Raipur unchanged at INR 32,000-32,200/t, however a few deals reported at INR 31,800-31,900/t on exw & FoR Raipur basis.
• Jharsuguda, Odisha based sponge supplier offered FeM 79 P-DRI at around INR 31,900/t FoR Raipur.
• Jajpur, Odisha based sponge supplier sold around 1,000 t FeM 80 C-DRI mix material at around INR 34,000/t FoR Raipur.
• Sources reported Chandrapur (Maharashtra) based manufacturers offered sponge P-DRI (FeM 80) at INR 32,000/t exw.
• Hare Krishna concluded deals of FeM 79-80 P-DRI in local region at INR 30,000/t exw Bellary.

Re-bar (12 mm)

• GK TMT(Fe 500D) offers stable at INR 48,500/t exw Raipur.
• Shrishtii TMT offers reported at INR 46,200/t exw Raigarh (Up by INR 200/t).
• Rathi Stelmax TMT is offering at INR 48,650/t exw Delhi/NCR (Down by INR 600/t).
• Mono TMT offers stable at INR 50,250/t FoR Ahmedabad.
• Sova Super TMT offers reported at INR 45,500/t exw Durgapur (Down by INR 200/t).
• Polaad TMT offers unchanged at INR 49,500/t exw Jalna.
• ARS TMT(Fe 550D) offers stable at INR 52,100/t exw Chennai.
• A One Gold TMT offers reported at INR 50,300/t exw Bellary.

Wire rod and structure

• Mid scale mills wire rod export offers remain unchanged at around $630/t exw Durgapur, equivalent to $655-660/t CPT Nepal, via road delivery.
• Trade reference wire rod prices in Raipur fell by INR 200/t to INR 46,500-46,700/t exw, due to increase in trade discounts. Also, assessment prices in Durgapur declined by INR 300/t to INR 46,300-46,500/t exw.
• Heavy structural steel, base price of 150 mm channel increase by INR 200/t to INR 48,400/t in Raipur with firm trade discount of INR 900-1,200/t. Trade reference price of 200 mm angle is at INR 50,200-50,500/t exw.