Indian Sponge & Billet offers decline by INR 100-300/MT (USD 1-4) day on day. The minimal inquires resulted further correction in offers.
On 6th Oct, SteelMint’s price assessment for induction furnaces grade billet are reported at INR 25,500-27,500/MT (USD 389-420) ex-works. Further the coal based sponge C-DRI price assessment was at INR 15,300-16,500/MT (USD 234-252), prices are ex-plant & excluding GST.
Today (Friday, October 6, 2017) INR to USD exchange rate stood at INR 65.37 & BSE Sensex closed at 31,814 (+222).
Key Updates
1. Indian Iron ore imports were up 12% M-o-M at 0.39 MnT in Sep’17 against 0.34 MnT in Aug’17.
2. Singareni Collieries Company Ltd (SCCL) has recorded 6% increase in coal production during the first half of the current fiscal FY18
3. Raipur, Central India based Integrated plants offered Sponge P-DRI at INR 15,000/MT, bulk purchase discount being heard at INR 100-200/MT. Sponge DR-CLO offers by medium size plants are assessed at INR 17,200/MT; prices are ex-plant & excluding GST.
4. SAIL’s IISCO Unit has sold out a rake (3,800 MT) of Steel grade pig iron at INR 22,500/MT (Ex-mill) for North India. Prior to this, the company’s offers was reported at INR 23,400/MT (Ex-mill).
5. Pig iron prices further fall in Durgapur, East India by INR 300-400/MT. The fresh offers for Steel grade are assessed at INR 22,600-23,000/MT against at INR 23,000-23,200/MT during start of the week.
6. Vizag Steel also known as RINL has increased steel grade pig iron prices by INR 500/MT to INR 25,300/MT ex-Vizag, South India.
7. JSW Steel, India’s second largest & private steel producer has offered gas based DRI at INR 18,500-19,000/MT (USD 285-293) ex-Dolvi, Maharahstra. The offers fell by INR 1,000-1,500/MT (USD 15-23) against offers during Sept’17 at INR 19,500-20,000/MT, the trade participants reported.
8. Indian Bulk Billet exports increase by three folds in Sept 2017 and are recorded at 126,300 MT against 42,000 MT in Aug’17.
9. According industry participants – most of the plants (around 60-70%) in Wada, Maharashtra are producing rebars & billet in night shift only because of falling margins (conversion) and stock piling.
10. In the pursuing week, JSPL may resume power supply to Pujipatra, Raigarh based plants around 50% (12 hrs), reported by the manufacturers. Since couple of weeks the production halted due none power supply, they added.
11. On weekly basis, Imported scrap offers to India remains stable for shredded scrap. While HMS scrap offers down by USD 5-10/MT
Reference prices as on 6 October 2017
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 17,000 | 17,000 | 17,100 | – 300 | NA | 18,200 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 15,700 | 15,500 | 15,900 | – 100 | 16,000 | 17,800 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 16,500 | 16,400 | 16,600 | + 100 | 16,500 | 18,700 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 16,400 | 16,300 | 16,500 | 0 | 16,250 | 17,800 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 16,200 | 16,100 | 16,200 | – 200 | NA | 17,200 |
| Ex-Rourkela | Lumps, FeM 78%, +/-1 | 14,700 | 14,600 | 14,800 | 0 | 14,800 | 16,600 | |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 15,000 | 14,900 | 15,100 | 0 | 15,100 | 17,500 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 16,200 | 16,100 | 16,300 | 0 | 16,100 | 17,500 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 27,800 | 27,700 | 27,900 | + 100 | 28,250 | 29,250 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 25,700 | 25,600 | 25,800 | – 200 | NA | 26,500 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 25,050 | 25,000 | 25,100 | – 150 | 25,100 | 26,050 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 25,450 | 25,400 | 25,500 | – 200 | 25,850 | 26,850 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 25,900 | 25,800 | 26,000 | – 100 | 26,000 | 27,800 | |
| Ex-Chennai | 3.5 x 4.5 Inch, IS 2830 | 27,000 | 26,800 | 27,200 | 0 | 27,000 | 28,000 | |
| Billet | Ex-Mandi Gobindgarh | 125×125 mm, IS 2831 | 28,100 | 28,000 | 28,200 | 0 | 28,700 | 29,700 |
| Ex-Durgapur | 125×125 mm, IS 2831 | 26,150 | 26,100 | 26,200 | – 250 | NA | 26,900 | |
| Ex-Rourkela | 125×125 mm, IS 2831 | 25,500 | 25,400 | 25,600 | – 150 | 25,400 | 26,350 | |
| Ex-Raipur | 125×125 mm, IS 2831 | 26,000 | 25,900 | 26,000 | – 250 | 26,200 | 27,200 | |
| Ex-Mumbai | 125×125 mm, IS 2831 | 26,100 | 26,000 | 26,100 | – 100 | 26,200 | 28,000 | |
| Ex-Chennai | 125×125 mm, IS 2831 | 27,500 | 27,400 | 27,600 | 0 | 27,500 | 28,500 | |
| TMT | Ex-Delhi/NCR | 12MM | 31,600 | 31,500 | 31,700 | – 100 | 31,700 | 32,000 |
| Ex-Durgapur | 12MM | 29,400 | 29,200 | 29,600 | – 100 | NA | 29,800 | |
| Ex-Raipur | 12MM | 28,800 | 28,600 | 29,000 | – 200 | 29,200 | 29,900 | |
| Ex-Mumbai | 12MM | 29,300 | 28,900 | 29,400 | – 100 | 29,700 | 31,300 | |
| Ex-Chennai | 12MM | 31,200 | 31,000 | 31,400 | – 300 | 31,500 | 32,500 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
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