Daily Update: Indian Sponge & Billet Market

Indian steel prices slightly fluctuated amid subdued trade activities as prices in across major markets increased by INR 100-200/MT except in Western India where same proportion fall observed.

SteelMint also learned from the participants that, major Indian steel mills are planing to roll-over rebar prices for May’19 deliveries, however officials confirmation awaited for the same.

SteelMint’s latest price assessment for induction furnaces billet in Indian market stood at INR 31,000-34,700/MT (USD 447-501) ex-plant.

Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 18,900-19,900/MT (USD 272-287); prices are ex-plant & excluding GST.

Rupee & BSE Sensex

— On 2nd May 2019 (Thursday) INR to USD exchange rate stood at INR 69.34.

— ICEX (Indian Commodity Exchange Ltd) May’19 contract for STEELLONG today open at INR 33,940/MT & last traded (IST 18:13) at INR 34,050/MT.

— BSE Sensex closed at 38,981(-50) on Thursday, as against last day (Tuesday) at 39,031(-35).

— NSE Nifty50 index was closed today at 11,724(-23).

Raw Materials

— NMDC IRON ORE rake movement for exports from Chhattisgarh mines increased sharply in Apr’19; procurement by C.G. based units stable at 45 rakes.

— State-owned pellet maker – Kudremukh Iron Ore Company Ltd (KIOCL) has signed a tripartite MoU with Emirates Steel, Abu Dhabi, and Star Global, Dubai for sale of high-grade pellets to Emirates Steel.

Semi Finished

— TATA Metaliks Ltd, the largest foundry grade pig iron manufacturer in eastern India has kept prices unchanged for May’19. Offers for foundry pig iron reported at INR 32,500/MT & Low Silicon (1-1.5%) at INR 29,900/MT; ex-plant, Kharagpur.

— SAIL (RSP) has received good response for today’s 7,850 MT steel grade pig iron auction. As per sources, near to 5,000 MT (64%) material have been sold out at the base price of INR 27,450-27,500/MT ex-plant, Rourkela.

— Neo Metaliks in Durgapur, has slightly reduced pig iron prices by INR 100/MT to INR 28,700/MT ex-plant. As per officials, response is not up to mark at prevailing prices.

— SAIL has floated export tender for 16,200 MT Prime Mild Steel Non-Alloy Concast billets (150*150 mm) from Bhilai Steel plant The cargo will be shipped from Vizag port. Due date for bid submission is 16:00 hrs as per IST on 08 May’19.

— Indian sponge iron export offers to Bangladesh remain unchanged with limited trade activities. The price assessment for lumps of grade FeM 78-80, recorded at USD 310/MT CPT Benpole (dry land port of Bangladesh & India) and USD 330/MT CNF Chittagong, Bangladesh.

— Raipur, Central India based Integrated plants offering Sponge P-DRI at INR 19,000-19,200/MT & Sponge DR CLO grade at INR 20,800-21,000/MT ex-plant.

— As per sources, Rashmi Metaliks in Durgapur has raised sponge prices by INR 100-200/MT to INR 18,100-18,200/MT (P-DRI).

— Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 18,900/MT & Billet at INR 31,000/MT ex-plant.

— East India, Odisha based manufacturer, Mahavir Ferro Alloys offered Billet at INR 31,000/MT ex-plant as per officials. Mostly deals concluded to Patna (Bihar) & local markets.

— Apple Industries in Bellary (Karnataka) offered Sponge FeM 83+ P-DRI lump at INR 20,100/MT & Billet at INR 32,100/MT ex-plant. As per officials, billet deals are mostly concluded to Wada (Maharashtra) market at this prices. Freight cost via road to Wada at INR 1,300-1,400/MT.

— BIOP Steels in South India has offered FeM 80 & 82 C-DRI lumps at INR 19,100/MT & 19,500/MT ex-plant, Karnataka; an official reported.

Wire Rod & Pipe

— Trade discounts in Raipur Wire rod further reduced by INR 200/MT to INR 700-900/MT, meanwhile basic prices for 5.5 mm steady at INR 37,900/MT ex-plant. In Durgapur offers for same material is hovering at INR 36,800-37,500/MT ex-plant.

— Raipur, Central India based ERW pipe manufacturers increased prices by INR 200-300/MT & offers reported at around INR 37,900-38,000/MT ex-plant & excluding GST.

— Mandi Gobindgarh, North India based ERW pipe manufacturers offers reported at around INR 40,400/MT ex-plant & excluding GST.

Rebar (12 mm)

— Rathi Steels based in North region is offering at around INR 38,500/MT (ex-Delhi).

— Raipur based – SPEED TMT has unchanged their offers at INR 35,500/MT.

— Real Ispat (GK TMT) is offering at INR 37,800/MT (up by INR 200/MT).

— Gujarat based Shreeyam Power & Steel Industries Ltd. (National TMT) has unchanged their offers at INR 38,300/MT FoR.

— Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) has unchanged their offers at INR 37,200/MT.

— Mumbai based Guardian Castings Pvt. Ltd. (Guardian TMT) is offering at INR 37,300/MT.

Note – Prices mentioned above are ex-work, excluding GST & changes are placed on day basis. Prices are subject to reconfirmation.

Reference prices as on 2nd May 2019.

Particular/Delivery Size, Grade, Origin Prices Min Max Change 1W 1M
Scrap Ex-Alang HMS(80:20) 26,500 26,400 26,600   0 27,200 26,000
Ex-Mumbai HMS(80:20) 25,100 24,900 25,200   0 25,200 25,100
Ex-Chennai HMS(80:20) 24,200 24,100 24,400 – 100 24,400 24,600
C-DRI Ex-Durgapur Mix, FeM 78%, +/-1 19,300 19,200 19,400 + 100 19,500 20,300
Ex-Rourkela Mix, FeM 80%, +/-1 18,900 18,800 18,900 + 100 18,700 18,800
Ex-Raipur Mix, FeM 80%, +/-1 19,900 19,800 20,000 + 100 19,600 19,800
Ex-Bellary Lumps, FeM 80%, +/-1 19,100 19,000 19,200   0 19,500 18,800
P-DRI Ex-Durgapur Lumps, FeM 78%, +/-1 18,100 18,000 18,200 + 100 18,300 19,000
Ex-Raipur Lumps, FeM 80%, +/-1 18,950 18,900 19,000 + 50 18,600 18,500
Ex-Bellary Lumps, FeM 80%, +/-1 18,800 18,700 18,900   0 19,000 18,500
Ex-Hyderabad Lumps, FeM 80%, +/-1 19,200 19,100 19,300 – 100 19,600 19,000
Ingot Ex-Mandi Gobindgarh 3.5 x 4.5 Inch, IS 2830 34,350 34,300 34,400 + 50 33,800 34,500
Ex-Durgapur 3.5 x 4.5 Inch, IS 2830 31,450 31,400 31,500 + 150 31,200 31,500
Ex-Rourkela 3.5 x 4.5 Inch, IS 2830 30,700 30,600 30,800   0 30,600 30,900
Ex-Raipur 3.5 x 4.5 Inch, IS 2830 31,050 31,000 31,100 + 50 30,850 31,350
Ex-Mumbai 3.5 x 4.5 Inch, IS 2830 33,400 33,300 33,400 – 100 33,000 32,900
Billet Ex-Mandi Gobindgarh 100×100 mm, IS 2831 34,700 34,600 34,800 + 100 34,200 34,900
Ex-Durgapur 100×100 mm, IS 2831 31,800 31,700 31,900 + 100 31,500 32,000
Ex-Rourkela 100×100 mm, IS 2831 31,000 30,900 31,100   0 30,900 31,200
Ex-Raipur 100×100 mm, IS 2831 31,750 31,700 31,800 + 150 31,500 31,900
Ex-Ahmedabad 100×100 mm, IS 2831 33,100 33,000 33,100 – 150 33,600 34,000
Ex-Mumbai 100×100 mm, IS 2831 33,600 33,500 33,600 – 100 33,300 33,100
Ex-Chennai 100×100 mm, IS 2831 31,950 31,900 32,000 + 50 32,800 32,500
Ex-Hyderabad 100×100 mm, IS 2831 32,000 31,900 32,100   0 32,300 32,700
TMT Ex-Delhi/NCR 12-25 MM, IS 1786- 500 Fe 37,700 37,500 37,900   0 37,600 38,300
Ex-Durgapur 12-25 MM, IS 1786- 500 Fe 36,800 36,600 37,000 + 300 36,800 37,100
Ex-Raipur 12-25 MM, IS 1786- 500 Fe 35,400 35,300 35,500 + 100 35,600 36,200
Ex-Mumbai 12-25 MM, IS 1786- 500 Fe 37,000 36,800 37,300 + 100 36,900 37,000
Ex-Chennai 12-25 MM, IS 1786- 500 Fe 37,300 37,400 37,700 – 100 37,700 37,700
Ex-Hyderabad 12-25 MM, IS 1786- 500 Fe 35,800 35,600 36,000   0 36,000 36,500
Wire Rod Ex-Durgapur Wire Rod(5.5 MM) 37,200 36,800 37,500 + 200 37,000 36,800
Ex-Raipur Wire Rod(5.5 MM) 37,900 37,100 37,900   0 37,900 38,300

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


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