Indian DRI, billet and re-bar update – 7 Sep

Indian induction furnace (IF) route steel market continued to witness dull sentiments on 7 Sept’21. Steel prices of mid-sized mills declined by up to INR 500/t ($7), d-o-d.

As per SteelMint assessment, sponge iron offers dropped by INR 100-400/t in many regions with a major fall of around INR 400/t in Durgapur and Bellary.

Domestic billet prices declined by INR 200-500/t in most locations. Moreover, the IF route re-bar market witnessed a fall in prices by INR 100-500/t across the country following with a major drop of INR 500/t seen in western and southern regions.

Sources are expecting that once prices rebound in the northern region, billet prices will pick up across markets as conversions are quite low for standalone furnaces based in the central and eastern regions. This is due to a steady fall in billet prices compared to correction in sponge iron prices.

Raw material

• Karnataka based BMM Ispat offered raw pellets at INR 11,200-11,300/t exw Bellary.

Semi finished

• Indian IF route billet export offers drop by $5/t to $560-565/t exw Durgapur, equivalent to $590/t CPT Nepal.
• Neo Metaliks in Durgapur has kept steel grade pig iron offers stable at INR 38,200/t exw.
• Sponge P-DRI offers in Raipur fell by INR 200/t & a few deals reported at around INR 29,300-29,400/t on exw & FoR Raipur basis.
• Rourkela based manufacturer, Mahavir Ferro Alloys concluded around 2,000 t deals of billet (125×125) at INR 41,500/t exw.
• BMM Ispat offered FeM 80 P-DRI lumps at INR 28,800/t exw Bellary.
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 29,800/t exw Bellary (Down by INR 300/t).

Re-bar (12 mm)

• GK TMT(Fe 500D) offers stable at INR 46,700/t exw Raipur.
• Shrishtii TMT offers reported at INR 44,400/t exw Raigarh.
• Rathi Stelmax TMT is offering at INR 46,750/t exw Delhi/NCR (Down by INR 250/t).
• Century TMT offers reported at INR 45,600/t exw Muzaffarnagar (Down by INR 300/t).
• Vinayak TMT is offering at INR 49,000/t FoR Ahmedabad (Down by INR 200/t).
• Polaad TMT is offering at INR 47,300/t exw Jalna (Down by INR 200/t).
• CPC Thermex TMT is offering at INR 43,300/t exw Durgapur (Down by INR 200/t).
• A One Gold, a prime grade TMT offers reported at INR 48,500/t exw Bellary

Wire rod and structure

• Mid scale mills wire rod export offers stood at $605-610/t exw Durgapur, equivalent to $635/t CPT Nepal, via road delivery.
• Trade reference wire rod prices in Raipur fell by INR 400/t to INR 43,500-43,800/t exw due to fall in base offers. Also, prices in Durgapur down by INR 300/t to INR 44,000-44,200/t exw-Durgapur.
• Heavy structural steel, base price of 150 mm channel offers stable at INR 46,500/t in Raipur with firm trade discount of INR 1,000-1,300/t. Trade reference price of 200 mm angle is at INR 48,100-48,500/t exw.