SteelMint

Daily Update: Indian Sponge & Billet Market

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by

Rounak Gairarey
in

The price fall continues in Indian iron & steel market owing to dull demand through the domestic & global buyers.

The participants reported mismatched supply chain as supply healthier while demand remains sluggish, this has forced producers to significant cut prices.

As per assessment, the Billet prices slump near to INR 200-500/MT (USD 3-7), meanwhile Sponge iron prices down by INR 100-300/MT (day-on-day) in major Indian markets.

The industry participants believed Semis prices to remain under pressure as buyers away to take positions on anticipations of further price corrections. This led to rise in inventories with the mills.

SteelMint’s latest price assessment for induction furnaces billet in Indian market stood at INR 31,700-35,400/MT (USD 449-502) ex-plant.

Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 20,800-22,400/MT (USD 295-318); prices are ex-plant & excluding GST.

Rupee & BSE Sensex

— On 23rd November 2018 (Friday) INR to USD exchange rate stood at INR 70.58.

Raw Materials

— As per SteelMint’s assessment offers for HMS 1&2 (80:20) assessed stable at around USD 328-330/MT from Europe and other origins.

Semi Finished

— Raipur, Central India based Integrated plants offering Sponge P-DRI at INR 20,700-20,800/MT & Sponge DR CLO grade at INR 22,700-22,900/MT ex-plant

— Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 21,600/MT & Billet at INR 31,600/MT ex-plant. As per officials, trade activities are weak at the offer prices.

— BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 20,400-20,500/MT ex-Bellary, an official reported.

— Apple Industries in Bellary (Karnataka) offered Sponge FeM 83+ P-DRI lump at INR 21,600/MT & Billet at INR 33,000/MT ex-plant.

— BIOP Steels in South India has decreased sponge prices by INR 100/MT, offering FeM 80 & 82 C-DRI lumps at INR 21,100/MT & INR 21,500/MT ex-plant, Karnataka; an official reported.

Finished Long

— Raipur based wire rod manufacturers reduced prices by INR 200/MT and today’s offers stood at INR 39,100/MT ex-plant. Meanwhile, offers for same material in Durgapur hovering at INR 38,500-38,700/MT ex-plant (size 5.5mm).

— Raipur based wire rod supplier kept trade discount unaltered and today’s discount at around INR 1,000/MT.

— Mandi Gobindgarh, North India based ERW pipe manufacturers decreased prices by INR 200/MT & offers reported at around INR 42,300/MT ex-plant & excluding GST.

— Hyderabad (South India) based Pipe manufacturer Mahalakshmi Profiles Pvt. Ltd (MPL) has kept offers unaltered for ERW Pipe at INR 42,000/MT ex-plant. (basic & excluding GST).

Rebar (12 mm)

— Rathi Steels based in North region offering at INR 39,300/MT, down by INR 500/MT.

— Raipur based – SPEED TMT offering at INR 35,700/MT, down by INR 400/MT.

— Mumbai based Guardian TMT offering at INR 37,100/MT, down by INR 200/MT.

— Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) TMT unchanged at INR 37,100/MT.

— East region based – Baba Smelter Pvt. Ltd offering Structure (125,150 Channel) at INR 39,250/MT.

— Chennai based ARS Steel (Trusteel) unchanged their offering at INR 41,800/MT.

Note – The prices mentioned are ex-work, excluding GST & changes are placed on day basis.

Reference prices as on 23rd November 2018

Particular/Delivery Size, Grade, Origin Prices Min Max Change 1W 1M
Scrap Ex-Alang HMS(80:20) 27,000 26,900 27,100 – 300 27,300 26,400
Ex-Mumbai HMS(80:20) 26,500 26,400 26,600   0 26,300 25,500
Ex-Chennai HMS(80:20) 26,300 26,200 26,500   0 26,800 26,300
C-DRI Ex-Durgapur Mix, FeM 78%, +/-1 22,350 22,300 22,400 – 250 23,100 23,000
Ex-Rourkela Mix, FeM 80%, +/-1 21,600 21,500 21,700 – 100 21,800 22,000
Ex-Raipur Mix, FeM 80%, +/-1 22,300 22,200 22,400 – 100 22,600 22,700
Ex-Bellary Lumps, FeM 80%, +/-1 20,800 20,700 20,900 – 100 21,500 21,800
P-DRI Ex-Durgapur Lumps, FeM 78%, +/-1 21,350 21,300 21,400 – 200 22,100 21,500
Ex-Raipur Lumps, FeM 80%, +/-1 20,750 20,700 20,800 – 50 20,800 21,100
Ex-Bellary Lumps, FeM 80%, +/-1 20,300 20,200 20,400 – 100 20,800 21,100
Ex-Hyderabad Lumps, FeM 80%, +/-1 20,800 20,700 20,900 – 200 21,500 21,800
Ingot Ex-Mandi Gobindgarh 3.5 x 4.5 Inch, IS 2830 34,850 34,800 34,900 – 150 35,350 35,900
Ex-Durgapur 3.5 x 4.5 Inch, IS 2830 32,100 32,000 32,200 – 300 33,200 33,900
Ex-Rourkela 3.5 x 4.5 Inch, IS 2830 31,400 31,300 31,500 – 200 32,100 32,500
Ex-Raipur 3.5 x 4.5 Inch, IS 2830 31,850 31,800 31,900 – 350 32,500 32,900
Ex-Mumbai 3.5 x 4.5 Inch, IS 2830 33,500 33,400 33,600 – 100 33,700 33,100
Billet Ex-Mandi Gobindgarh 125×125 mm, IS 2831 35,450 35,400 35,500 – 150 36,150 36,700
Ex-Durgapur 125×125 mm, IS 2831 32,500 32,400 32,600 – 200 33,500 34,300
Ex-Rourkela 125×125 mm, IS 2831 31,700 31,600 31,800 – 400 32,700 33,100
Ex-Raipur 125×125 mm, IS 2831 32,300 32,200 32,400 – 350 33,150 33,800
Ex-Ahmedabad 125×125 mm, IS 2831 34,150 34,100 34,200 – 250 34,500 34,000
Ex-Mumbai 125×125 mm, IS 2831 33,700 33,600 33,800 – 200 34,000 33,300
Ex-Chennai 125×125 mm, IS 2831 34,500 34,400 34,600   0 35,100 35,400
Ex-Hyderabad 125×125 mm, IS 2831 33,500 33,400 33,600 – 500 34,500 34,000
TMT Ex-Delhi/NCR 12-25 MM, IS 1786- 500 Fe 38,200 38,100 38,300 – 500 38,800 39,200
Ex-Durgapur 12-25 MM, IS 1786- 500 Fe 37,800 37,600 38,000 – 300 38,800 39,000
Ex-Raipur 12-25 MM, IS 1786- 500 Fe 35,700 35,600 35,800 – 300 36,300 36,800
Ex-Mumbai 12-25 MM, IS 1786- 500 Fe 37,000 36,900 37,200 – 100 37,500 37,000
Ex-Chennai 12-25 MM, IS 1786- 500 Fe 39,000 38,800 39,200   0 39,400 40,300
Ex-Hyderabad 12-25 MM, IS 1786- 500 Fe 38,000 37,800 38,200   0 38,500 38,000
Wire Rod Ex-Durgapur Wire Rod(5.5 MM) 38,600 38,400 38,700 – 300 39,700 40,100
Ex-Raipur Wire Rod(5.5 MM) 39,100 38,100 39,100 – 200 39,900 40,200

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

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