Indian DRI, billet and re-bar update – 17 Nov

The Indian induction furnace (IF) steel market saw healthy demand on 17 Nov’21. As per assessment, steel prices of the mid-sized mills increased by up to INR 900/tonne (t) ($12/t).

Semi-finished steel (including sponge iron and billet) offers moved up by INR 50-900/t, although a marginal fall of INR 200/t was seen in Hyderabad’s sponge market.

On the other hand, rebar (Fe 500) prices increased by INR 100-600/t across locations in the country, despite a slight correction in the range of INR 100-300/t in Mandi Gobindgarh and Chennai.

As per market participants, enquiries continue to remain strong especially in the central region, which is supporting prices.

Raw material

• Jharsuguda based pellet maker offered raw pellets at INR 10,800/t exw.
• Odisha based sponge manufacturer booked around 2,000 t RB3 coal at INR 8,800/t ex- Vizag port.
• Singhal Steel, Raigarh based manufacturer has offered 60-14 silico manganese at INR 94,000/t exw.
• A Sponge iron manufacturer based in Goa booked RB2 at INR 10,500/t ex- Mangalore port

Semi finished

• Induction grade billet export offers increased by $5/t to around $565/t exw Durgapur, equivalent to $590/t CPT Nepal.
• Sponge P-DRI deals reported at around INR 29,300-29,600/t, while the later offers increased to around INR 29,700-29,800/t, on exw & FoR Raipur basis.
• Neo Metaliks in Durgapur has reduced steel grade pig iron offers by INR 300/t to INR 42,200/t exw, however sources claimed material available at INR 41,500-41,700/t exw.
• Odisha based sponge supplier sold around 1,200 t FeM 79 P-DRI at around INR 29,300-29,400/t FoR Raipur.
• An export deal for 1,260 t, FeM 80-82 C-DRI lumps reported to Nepal at around INR 33,200/t ($446), loaded to rake, from Odisha.
• Durgapur based producer sold 500 t sponge P-DRI at INR 28,900-29,000/t on FoR basis.
• Jharkhand based billet sellers concluded around 1,000 t deals at INR 41,800-41,900/t & around 700 t low carbon billet sold at INR 43,000/t exw Ramgarh.
• Odisha based manufacturer, Ganesh sponge offered FeM 80 C-DRI mix (70% lumps, 30% fines) at INR 30,800/t exw Angul.
• BMM Ispat offered FeM 80 P-DRI lumps at INR 29,500/t exw Bellary & around 2,000 t deals reported in Hyderabad region.

Wire Rod and structure

• Mid scale mills wire rod export offers stood at around $620-625/t exw Durgapur, equivalent to $645-650/t CPT Nepal.
• Trade reference wire rod prices in Raipur increased by INR 600/t to INR 46,200-46,300/t exw, due to fall trade discounts.
• West Bengal situated mill concluded around 600 t of wire rod at INR 45,500/t on exw Durgapur basis.
• Raigarh based Singhal Steel concluded around 1,000 t deals of wire rod at INR 45,500/t exw.
• In Heavy structural steel, base price of 150 mm channel is stable to INR 50,000/t in Raipur with firm trade discount of INR 1,000-1,300/t. Trade reference price of 200 mm angle is at INR 51,600-52,000/t exw.

Click here for re-bar brand wise details