Indian billet and sponge market observed slight price corrections by INR 100-300/MT on daily analysis due to weak trade sentiments.
However, in Maharashtra (Mumbai & Jalna) the producers have increase billet offers by around INR 100-200/MT.
SteelMint’s price assessments for induction furnaces billet size 125×125 mm are reported at INR 26,300-29,400/MT (USD 410-460) ex-plant.
While, coal based sponge C-DRI price assessment was at INR 17,700-18,800/MT (USD 276-294) ex-plant.
Key Market Updates:
1. Neelachal Ispat Nigam Ltd (NINL), India’s largest and state owned steel grade pig iron manufacturer & exporter has further increase pig iron prices by INR 1,000/MT to INR 25,000-25,250/MT for Sept 2017. The company’s pig iron dispatch down 41% M-o-M in Aug’17.
2. Indian sponge iron export offers increase further by USD 5/MT to USD 325/MT CPT Benapole port, Bangladesh.
3. Small lots of billet being sold to Nepal from Durgapur, East India around USD 430-335/MT (INR 27,500-27,900) ex-plant.
4. Indian pellet export tender raises pellet premium by USD 6/MT (17%) to around USD 41.5/MT CFR China, which was USD 35.9/MT last week.
5. Big plants in Durgapur have reduced sponge offers by INR 200-300/MT with current offers for FeM 78 P-DRI at INR 17,300-17,400/MT, basic & excluding of GST.
6. Raipur based Integrated plants offering P-DRI at INR 17,600/MT which was at INR 17,600-17,700/MT on 6th Sept.
7. Power cut remains continue by JSPL for Punjipatra, Raigarh based EAF/IF & Rolling mills. Hence, production of Ingot/billet continue to lower down.
8. Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 17,800-17,900/MT & billet at INR 26,200-26,300/MT ex-plant.
9. BMM Ispat in South India has kept sponge offers unaltered at INR 17,500/MT for FeM 80 P-DRI, ex-Bellary, Karnataka.
10. Sunvik Steels in Karnataka has rolled over sponge prices; offering FeM 80 & 82 C-DRI are INR 18,500/MT and INR 18,900/MT. Also offering 8mm TMT at INR 43,000/MT ( incl. of 18% GST). All prices are ex-works.
Reference prices as on 7 September 2017
| Particular/Delivery | Size, Grade, Origin | Prices | Change | 1W | 1M | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 18,350 | – 250 | 18,200 | 18,000 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 17,850 | – 150 | 17,600 | 17,500 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 18,800 | – 200 | 18,900 | 19,000 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 18,000 | 0 | 17,600 | 17,500 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 17,400 | – 300 | 17,200 | 17,000 |
| Ex-Rourkela | Lumps, FeM 78%, +/-1 | 16,800 | – 100 | 16,500 | NA | |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 17,600 | – 50 | 17,400 | 17,700 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 17,500 | 0 | 17,200 | 17,450 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 29,250 | – 100 | 29,300 | 29,550 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 26,600 | – 250 | 26,850 | 26,550 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 26,000 | – 100 | 25,900 | 26,050 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 26,700 | – 200 | 26,400 | 26,700 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 28,000 | + 200 | 28,200 | 28,250 | |
| Ex-Chennai | 3.5 x 4.5 Inch, IS 2830 | 28,000 | 0 | 28,500 | 28,250 | |
| Billet | Ex-Mandi Gobindgarh | 125×125 mm, IS 2831 | 29,700 | – 100 | 29,700 | 29,700 |
| Ex-Durgapur | 125×125 mm, IS 2831 | 27,000 | – 250 | 27,200 | 27,050 | |
| Ex-Rourkela | 125×125 mm, IS 2831 | 26,350 | – 150 | 26,350 | 26,500 | |
| Ex-Raipur | 125×125 mm, IS 2831 | 27,300 | – 200 | 26,900 | 27,250 | |
| Ex-Mumbai | 125×125 mm, IS 2831 | 28,200 | + 200 | 28,400 | 28,450 | |
| Ex-Chennai | 125×125 mm, IS 2831 | 28,500 | 0 | 29,000 | 28,750 | |
| TMT | Ex-Delhi/NCR | 12MM | 32,000 | – 100 | 32,950 | 33,400 |
| Ex-Durgapur | 12MM | 29,800 | – 200 | 29,800 | 29,700 | |
| Ex-Raipur | 12MM | 30,100 | – 200 | 29,600 | 29,500 | |
| Ex-Mumbai | 12MM | 31,200 | + 200 | 31,600 | 31,700 | |
| Ex-Chennai | 12MM | 32,500 | 0 | 32,750 | 32,250 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
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