Today, domestic Semi-finished offers further correct as a day ago, Sponge by INR 50-300/MT & Billet by INR 100-500/MT owing to weak trade activities on prevailing holiday mood in the major markets.
On 27th Sept, SteelMint’s price assessment for induction furnaces billet size 125×125 mm are reported at INR 25,500-27,500/MT (USD 388-418).
While, 78-80 FeM sponge C-DRI price assessment was at INR 15,800-16,900/MT (USD 240-257); prices are ex-plant & excluding GST.
Today (Wednesday, September 27, 2017) INR to USD exchange rate stood at INR 65.70 & BSE Sensex closed at 31,159 (-439).
Updates
1. Standalone Induction furnaces and Hot rolling mill (HRM) operators in Raipur have temporarily minimal their sponge purchases and are waiting for clarification about the rebate on power tariff. According to producers, if rebate will remove (of INR 1.40/unit) their input cost to surge by INR 1,000-1,500/MT which may force them to cut productions as they already running their plants under low conversion (margins).
2. JSW Steel – India’s largest steel maker has recorded an increase of 5% M-o-M in its crude steel output from 1.278 MnT in Jul’17 to 1.337 MnT in Aug’17.
3. Indian Iron ore production down by 17% at 13.6 MnT in Jul’17 as compared to 16.3 MnT in Jun’17.
4. Raipur, Central India based Integrated plants offered Sponge P-DRI at INR 15,400-15,500/MT, however buying interest reported around INR 15,300/MT ex-plant. Sponge DR-CLO offers are evaluated in the range of INR 17,300-17,500/MT for 0-20 mm.
5. Melting scrap offers in Western India- Maharashtra & Gujarat decline further by INR 200-400/MT (D-o-D) owing to slump in Sponge & billet prices.
6. BMM Ispat in South India has kept offers unaltered, offering FeM 80 P-DRI lumps at INR 16,500/MT ex-Bellary, Karnataka.
7. Sunvik Steels in Karnataka has reduced offers by INR 300/MT; offering FeM 80 & 82 sponge C-DRI lumps are INR 16,700/MT & INR 17,100/MT ex-plant, respectively.
8. Odisha based small size sponge manufacturers offered FeM 80 C-DRI mix material in the range of INR 16,000-16,200/MT where as deals are reported majorly around INR 16,000/MT ex-plant & excluding GST.
9. Raipur based hot rolling mills offering billet at INR 26,000-26,100/MT and standalone plants offer around INR 26,200-26,300/MT ex-plant. Meanwhile, few trades being reported at INR 26,200-26,300/MT FOR.
Reference prices as on 27 September 2017
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| C-DRI | Ex-Rourkela | Mix, FeM 80%, +/-1 | 16,150 | 16,100 | 16,200 | – 50 | 17,150 | 17,700 |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 16,900 | 16,800 | 17,000 | – 300 | 17,800 | 19,000 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 16,500 | 16,400 | 16,600 | 0 | 17,050 | 17,600 | |
| P-DRI | Ex-Rourkela | Lumps, FeM 78%, +/-1 | 15,000 | 14,900 | 15,100 | NA | 15,750 | 16,750 |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 15,500 | 15,400 | 15,600 | – 200 | 16,400 | 17,500 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 16,300 | 16,200 | 16,400 | 0 | 16,700 | 17,300 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 28,150 | 28,100 | 28,200 | – 150 | 29,200 | 29,400 |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 25,250 | 25,200 | 25,300 | – 150 | 26,000 | 26,000 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 25,850 | 25,900 | 26,100 | – 250 | 26,650 | 26,400 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 26,300 | 26,200 | 26,400 | – 300 | 26,900 | 28,150 | |
| Ex-Chennai | 3.5 x 4.5 Inch, IS 2830 | 27,000 | 26,800 | 27,200 | 0 | 27,750 | 28,500 | |
| Billet | Ex-Mandi Gobindgarh | 125×125 mm, IS 2831 | 28,500 | 28,400 | 28,600 | – 300 | 29,500 | 29,800 |
| Ex-Rourkela | 125×125 mm, IS 2831 | 25,500 | 25,400 | 25,600 | – 300 | 26,300 | 26,400 | |
| Ex-Raipur | 125×125 mm, IS 2831 | 26,300 | 26,200 | 26,400 | – 300 | 27,250 | 27,000 | |
| Ex-Mumbai | 125×125 mm, IS 2831 | 26,500 | 26,400 | 26,500 | – 300 | 27,100 | 28,350 | |
| Ex-Chennai | 125×125 mm, IS 2831 | 27,500 | 27,400 | 27,600 | 0 | 28,000 | 29,000 | |
| TMT | Ex-Delhi/NCR | 12MM | 31,700 | 31,600 | 31,800 | – 400 | 32,500 | 32,950 |
| Ex-Raipur | 12MM | 29,050 | 28,950 | 29,150 | – 250 | 30,000 | 29,800 | |
| Ex-Mumbai | 12MM | 30,100 | 29,700 | 30,200 | – 200 | 30,700 | 31,600 | |
| Ex-Chennai | 12MM | 31,500 | 31,400 | 31,600 | 0 | 32,000 | 32,750 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
Leave a Reply