Indian Billet & Sponge Trade Log, 16 Aug

After the end of holidays, on 16 Aug’17 domestic Semi finished prices spurt. SteelMint’s assessment showed price rise of INR 200-600/MT (USD 3-8) in billet & INR 100-300/MT in sponge against analysis on 14 Aug.

Major price gain of INR 300-600/MT in billet reported in Central, West & Southern regions of India.

For the day, SteelMint’s price assessment for Induction furnace grade billet are reported at INR 26,800-28,900/MT (USD 417-450) and Sponge C-DRI (FeM 78-80) produced through coal route, the offers for material are evaluated at INR 18,200-19,200/MT (USD 283-300) ex-works & excluding of GST at 18%.

Trade Updates:

1. Integrated plants in Rapur, Central India sold out targeted quantity of Sponge P-DRI at INR 17,600-17,800/MT on Monday (14 Aug’17); hence looking to good response by IF/EAF, the producers today manufacturers increased offers by INR 200-300/MT to INR 18,000-18,100/MT. Sponge DR CLO grade offers also rose by INR 300/MT to INR 19,800/MT. Both prices are ex-plant & excluding of GST

2. Big plants in Durgapur, East India increases Sponge & Billet prices by INR 200/MT day on day. Today, the offers are reported – C-DRI at INR 18,400/MT, P-DRI at INR 17,400/MT & for Billet size 100*100 & 125*125 mm at INR 27,500/MT; basic & excluding of GST.

3. Odisha, Rourkela based small size Sponge manufacturers increases offers by INR 200-300/MT; FeM 80 C-DRI mix material are reported at INR 17,600-17,900/MT & 100% lumps at INR 18,000-18,300/MT ex-plant & excluding of GST. The buyers based in Maharashtra reported that on increased offers they haven’t booked major quantity.

4. Following the surge in Sponge & Billet prices in Central & East India, the manufacturers in South India also increases offer for both Sponge & Billet by INR 200-500/MT. Sunvik Steels in Bellary, Karnataka, today has increase prices by INR 400/MT in rebar & INR 300/MT for sponge; FeM C-DRI quoted at INR 17,900/MT ex-plant & excluding of GST.

5. In Western India, Gujarat the trade activities boost after the dull works due to Janmashtami festival. Similarly in Maharashtra (Mumbai & Jalna) with some improve demand the producers have increase finished steel prices by INR 200-300/MT.

6. Domestic Pig iron & Scrap offers further increase owing to shortage and with rise in sponge & billet prices.

Indian sponge & billet reference prices as on 16 August 2017

Basic, ex-works prices & excluding of GST @ 18%
Source: SteelMint Research