Indian Billet & Sponge Trade Log, 22 Aug

On daily basis, domestic billet prices fall by INR 100-450/MT (USD 2-7) on 22 August. The prices fall in line with low purchase by re-rollers following weak demand in finished products.

Further with decline in billet offers, sponge producers also reduced their offers by INR 100-300/MT D-o-D against price assessment on 21 August.

Today, SteelMint’s price assessment for induction furnaces billet (size 125×125 mm) are reported at INR 26,500-29,500/MT (USD 414-461). While, coal based sponge C-DRI offers was at INR 17,700-19,000/MT (USD 276-297); all prices are ex-plant & excluding of GST.

Trade Updates:

1. Sponge offers by integrated plants in Raipur, Central India remains firm for P-DRI at INR 18,000/MT. However, trades being reported at less price by INR 100-200/MT. Sponge C-DRI offers by medium size kilns are reported at INR 18,800-19,000/MT & DR-CLO grade material at INR 19,500-19,700/MT. All prices are ex-plant & excluding of GST.

2. Big plants in Durgapur, East India decreases Sponge prices by INR 100/MT day on day. Today, the offers are reported – C-DRI at INR 18,300/MT & P-DRI at INR 17,400/MT; basic & excluding of GST.

3. Odisha, Rourkela based small size Sponge manufacturers decreases offers by INR 200/MT; FeM 80 C-DRI mix material are reported at INR 17,800/MT & 100% lumps at INR 18,000-18,200/MT ex-plant & excluding of GST.

4. Conversion spread (margins) in Raipur are evaluated at INR 9,000-9,200/MT from P-DRI ( FeM 80) to billet; down approximately INR 2,000/MT as the same during Jun-Jul’17 was reported near INR 11,000/MT.

5. South Indian domestic pellet offers have been up by INR 300/MT due to short supply.

Indian sponge & billet reference prices as on 22 August 2017

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