Daily Update: Indian Sponge & Billet Market

Indian Semi-finished steel prices rise marginally amid average trade activities and as per assessment the domestic Billet prices increase by INR 100-400/MT & Sponge iron by INR 100-300/MT, day-on-day.

The Industry participants are assuming, Indian Semis prices are likely to remain fluctuate due to subdued demand & low conversion spread (margins) of Ingot/Billet manufacturers.

SteelMint’s latest price assessment for induction furnaces billet in Indian market stood at INR 30,800-34,400/MT (USD 450-503) ex-plant.

Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 19,300-22,000/MT (USD 282-322); prices are ex-plant & excluding GST.

Rupee & BSE Sensex

On 1st August 2018 (Wednesday) INR to USD exchange rate stood at INR 68.35

BSE Sensex closed at 37,521(-84) on Wednesday, as against last day (Tuesday) at 37,606(+112).

Raw material

Vedanta’s saleable iron ore production from Goa mines stood at 0.2 MnT in Q1 FY19 against 2.2 MnT in Q1 FY18, down sharply 89% Y-o-Y.

JSW Steel (Dolvi) iron ore sourcing from NMDC decreased sharply by 63% in Jul’18 to 18 rakes as against 48 rakes in Jun’18.

According to the latest assessment of Coking coal, spot prices of the Premium HCC, Australia have decreased by USD 2-3/MT W-o-W & assessed at USD 185.5/MT CNF India

Alang, Gujarat scrap offers reported six month low over rising scrap inventories on seasonal poor demand, logistic concern & declining steel prices.

Semi finished

— Vedanta Resource’s (erstwhile Sesa Goa) pig iron production has dropped by 8.24% Q-o-Q in the 1st Quarter of financial year (FY) 2019. Production has reported at 167,000 MT in Q1 FY19 against production of 182,000 MT in Q4 FY18.

Indian Sponge iron export deals concluded at around USD 325/MT CPT Benapole (dry port of India & Bangladesh), equivalent to USD 345-350/MT CFR Chittagong, Bangladesh.

Raipur, Central India based Integrated plants offering Sponge P-DRI at INR 20,200-20,400/MT & Sponge DR CLO grade at INR 22,900-23,100/MT ex-plant

In West Bengal – Durgapur, big manufacturers have increased sponge prices by INR 200-300/MT D-o-D; offering P-DRI at INR 20,100-20,200/MT.

Raigarh based Singhal Steel offered P-DRI at INR 19,300-19,400/MT ex- plant, an official reported. Also, the company is offering Billets at INR 31,400-31,500/MT FoR Raipur.

Central India, Raigarh based smelters selling Sponge P-DRI at INR 20,200/MT FoR Raipur.

Sources reported, Odisha (East India) based furnace owners selling Billet to Hyderabad (South India) at INR 30,800/MT ex-plant, Freight via road at INR 2,100-2,300/MT.

BMM Ispat a price trend setter in South Indian sponge market has kept offers unaltered today and offering FeM 80 P-DRI lumps at INR 18,500-18,600/MT ex-Bellary, Karnataka.

BIOP Steels in South India has increased sponge prices by around INR 100/MT, offering FeM 80 & 82 C-DRI lumps at INR 19,400/MT & INR 19,800/MT ex-plant, Karnataka; an official reported.

Chennai based renowned sponge manufacturer concluded export deal of 1,000 MT C-DRI Lumps to Bangladesh at the price of USD 350/MT CFR Chittagong- Sources

Finish Long

Shakti Ferro Alloys in Chennai, South region has offered 12 mm Rebar at INR 39,000/MT & Billet at INR 34,000/MT on advance payment, ex-work & excluding GST.

As per sources, South India based a renowned manufacturer has concluded Billet export deal at USD 495/MT FoB to Philippines, qty. around 10,000 MT.

Gujarat based Shreeyam Power & Steel Industries Ltd offering 20 mm Rebar at INR 43,800/MT FoR and including GST & Billet at INR 33,200/MT excluding GST.

Chennai based – Tulsyan NEC Steel (Tulsyan) has unchanged their offer price on day basis & current offering 12 mm Rebar at INR 40,000/MT, ex-plant & excluding GST.

Jalna based rebar manufacturer – SRJ Peety Steels Pvt Ltd branding Shree Om TMT increased prices by around INR 200/MT on day basis & offering 28 mm Rebar at INR 34,000/MT, ex-work & excluding GST.

West region based – Vistar TMT current offering 28 mm Rebar at INR 33,000/MT, ex-work & excluding GST which is unchanged on day basis.

Hyderabad based – Dhanlaxmi Iron Industries offering 28 mm rebar at INR 38,800/MT unchanged on day basis. As per official view average supply movement is happening with existing demand.

Central region – Raipur based brand – SPEED TMT has unchanged their price on day basis & offering 28 mm Rebar at INR 32,200/MT ex-work & excluding GST. As per official view appropriate bookings at current price range.

Reference prices as on 1st August 2018

  Particular/Delivery Size, Grade, Origin Prices Min Max Change 1W 1M
Scrap Ex-Mumbai HMS(80:20) 25,000 24,900 25,100   0 24,700 25,000
Ex-Chennai HMS(80:20) 22,600 22,500 22,700 – 100 22,700 24,100
C-DRI Ex-Durgapur Mix, FeM 78%, +/-1 21,400 21,300 21,500 + 200 20,300 21,900
Ex-Rourkela Mix, FeM 80%, +/-1 20,700 20,600 20,800 + 100 20,600 20,800
Ex-Raipur Mix, FeM 80%, +/-1 22,000 21,900 22,100 + 100 21,700 21,800
Ex-Bellary Lumps, FeM 80%, +/-1 19,300 19,200 19,400   0 19,000 19,200
P-DRI Ex-Durgapur Lumps, FeM 78%, +/-1 20,200 20,100 20,300 + 300 19,100 20,850
Ex-Raipur Lumps, FeM 80%, +/-1 20,300 20,200 20,400 + 100 19,800 19,950
Ex-Bellary Lumps, FeM 80%, +/-1 18,500 18,400 18,600   0 18,400 18,500
Ex-Hyderabad Lumps, FeM 80%, +/-1 19,000 18,900 19,100   0 18,800 19,200
Ingot Ex-Mandi Gobindgarh 3.5 x 4.5 Inch, IS 2830 33,800 33,700 33,900 – 200 33,600 36,100
Ex-Durgapur 3.5 x 4.5 Inch, IS 2830 31,600 31,500 31,700 + 300 30,700 33,500
Ex-Rourkela 3.5 x 4.5 Inch, IS 2830 30,050 30,000 30,100 + 50 30,000 32,200
Ex-Raipur 3.5 x 4.5 Inch, IS 2830 30,600 30,500 30,700 + 100 30,100 32,900
Ex-Mumbai 3.5 x 4.5 Inch, IS 2830 32,200 32,100 32,300 + 200 31,500 33,200
Ex-Chennai 3.5 x 4.5 Inch, IS 2830 33,900 33,800 34,000 + 300 33,500 34,300
Ex-Hyderabad 3.5 x 4.5 Inch, IS 2830 33,000 33,700 33,200 – 200 33,200 33,700
Billet Ex-Mandi Gobindgarh 125×125 mm, IS 2831 34,300 34,200 34,400 – 200 34,100 36,500
Ex-Durgapur 125×125 mm, IS 2831 32,200 32,100 32,300 + 200 31,300 34,000
Ex-Rourkela 125×125 mm, IS 2831 30,850 30,800 30,900 + 100 30,900 33,100
Ex-Raipur 125×125 mm, IS 2831 31,400 31,300 31,500 + 200 30,900 33,900
Ex-Mumbai 125×125 mm, IS 2831 32,500 32,400 32,600 + 150 31,750 33,500
Ex-Chennai 125×125 mm, IS 2831 34,400 34,300 34,500 + 300 34,000 34,800
Ex-Hyderabad 125×125 mm, IS 2831 33,300 33,000 33,500 – 200 33,500 34,000
TMT Ex-Delhi/NCR 12-25 MM, IS 1786- 500 Fe 36,700 36,400 36,800   0 37,500 41,200
Ex-Durgapur 12-25 MM, IS 1786- 500 Fe 35,600 35,400 35,800   0 35,300 38,500
Ex-Raipur 12-25 MM, IS 1786- 500 Fe 34,400 34,200 34,600   0 34,800 38,300
Ex-Mumbai 12-25 MM, IS 1786- 500 Fe 36,000 35,800 36,200   0 35,800 38,000
Ex-Chennai 12-25 MM, IS 1786- 500 Fe 38,900 38,800 39,100 + 200 38,900 39,800
Ex-Hyderabad 12-25 MM, IS 1786- 500 Fe 37,500 37,300 37,700   0 38,000 38,750

Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research


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