Indian DRI, billet and re-bar update – 20 Aug

Spot trading in the Indian secondary steel market remained dull on 20 Aug’21. Secondary steel commodity prices dropped by up to INR 600/t ($8), d-o-d.

As per SteelMint assessment, the Indian semi-finished steel market (including sponge iron and billet) declined by INR 100-600/t in many regions, especially a marked decline of INR 400/t in Durgapur’s sponge iron market was observed, not to forget a correction of around INR 600/t witnessed in the northern and western regions.

Also, induction furnace (IF) route re-bar offers slipped by INR 100-300/t across the country with a major drop of INR 300/t in Mumbai.

Falling raw material prices and the prospect of better supply of semi-finished products have turned the market sluggish leading to price downturns observed in the last couple of days, SteelMint notes.

Raw material

• A Chandrapur (Maharashtra) based sponge iron manufacturer getting raw pellet offers from Bellary at INR 14,000/t FoR.
• Jharsuguda based pellet maker sold around 7,000 t raw pellets in local region at INR 12,800/t exw.

Semi finished

• Induction grade (IF) billet export offers drop by $5-10/t to around $575/t, exw-Durgapur (equivalent to $600-605/t CPT Nepal).
• Neo Metaliks in Durgapur has kept steel grade pig iron offers stable at INR 39,200/t exw.
• Sponge P-DRI offers in Raipur fell by INR 100/t & deals reported at INR 31,550-31,700/t on exw & FoR Raipur basis.
• Jharsuguda, Odisha based sponge supplier offered FeM 80 P-DRI at around INR 31,500-31,600/t FoR Raipur.
• Sources reported Chandrapur (Maharashtra) based manufacturers offered sponge P-DRI (FeM 80) at INR 31,800/t exw.

Re-bar (12 mm)

• GK TMT(Fe 500D) offer stable at INR 48,500/t exw Raipur.
• Century TMT is offering at INR 47,200/t exw Muzaffarnagar.
• Mono TMT offers stable at INR 50,000/t FoR Ahmedabad (Down by INR 300/t).
• Polaad TMT offers unchanged at INR 49,500/t exw Jalna.
• Metalics 550D TMT offers reported at INR 46,800/t exw Sambalpur.
• Chaliama based Rungta TMT offers reported at INR 45,500/t exw.

Wire rod and structure

• Mid scale mills wire rod export offers dropped to around $620/t exw Durgapur, equivalent to $645-650/t CPT Nepal, via road delivery.
• Trade reference wire rod prices in Raipur drop further by INR 300/t to INR 46,000-46,200/t exw, due to fall in based offers. Also, assessment prices in Durgapur fell by INR 200/t to INR 45,800-46,000/t exw.
• Heavy structural steel, base price of 150 mm channel decrease by INR 200/t to INR 48,200/t in Raipur with firm trade discount of INR 1,000-1,300/t. Trade reference price of 200 mm angle is at INR 49,900-50,200/t exw.