Indian DRI, billet and re-bar update – 15 Sep

The Indian induction furnace (IF) route steel market witnessed prices receiving a boost on 15 Sept’21. Steel prices of mid-sized mills increased by up to INR 450/t ($6), d-o-d.

As per SteelMint assessment, sponge iron offers surged by INR 50-450/t across locations in the country. However, domestic billet prices fluctuated by INR 100-400/t in the major markets.

IF route re-bar markets in the country witnessed a hike in prices by INR 100-400/t, whereas a downfall of INR 200/t was observed in the Uttar Pradesh’s Muzaffarnagar market.

Sources are expecting that higher coal prices amidst slight supply shortage of sponge iron as well substitute products are likely to keep semi-finished steel prices supported in the coming time.

Raw material

• Karnataka based BMM Ispat offered raw pellets at INR 11,300/t exw Bellary.
• Jharsuguda based pellet maker offered raw pellets at INR 11,000/t exw.

Semi finished

• Indian IF route billet export offers stood at around $575-580/t exw Durgapur, equivalent to $610/t CPT Nepal. A few trades have been confirmed at around $605-610/t CPT Nepal.
• Steel grade pig iron prices rose further by INR 1,500-2,000/t to INR 42,000-42,500/t exw Durgapur. Higher coke prices along with supply shortage resulted in a rally in pig iron offers in major locations.
• Sponge P-DRI (FeM 80%) offers in Raipur up by INR 300/t to INR 30,000-30,200/t & deals reported at INR 29,800-30,100/t on exw & FoR Raipur basis.
• Jharsuguda, Odisha based sponge supplier offered FeM 79 P-DRI at around INR 29,900-30,000/t FoR Raipur.
• BMM Ispat offered FeM 80 P-DRI lumps at INR 30,200/t exw Bellary (Up by INR 200/t).
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 31,000/t exw Bellary (Up by INR 200/t).

Re-bar (12 mm)

• GK TMT(Fe 500D) is offering at INR 46,800/t exw Raipur (Up by INR 300/t).
• Shrishtii TMT offers reported at INR 45,000/t exw Raigarh (Up by INR 200/t).
• Swarup TMT is offering at INR 46,100/t exw Muzaffarnagar (Down by INR 100/t).
• Rathi Stelmax TMT offers stable at INR 47,250/t exw Delhi/NCR.
• Kalika TMT offers stable at INR 46,200/t exw Jalna.
• Mono TMT offers stable at 47,200/t FoR Ahmedabad.
• SEL 500D TMT offers reported at INR 46,500/t exw Sambalpur (Up by INR 300/t).

Wire rod and structure

• Mid scale mills wire rod export offers stable at around $620/t exw Durgapur, equivalent to $645-650/t CPT Nepal, via road delivery.
• Trade reference wire rod prices stable at INR 44,700-44,900/t exw Raipur & INR 45,000-45,300/t exw-Durgapur.
• Heavy structural steel, base price of 150 mm channel is increased by INR 200/t to INR 47,200/t in Raipur with firm trade discount of INR 900-1,200/t. Trade reference price of 200 mm angle is at INR 48,900-49,300/t exw.