Indian DRI, billet and re-bar update – 24 Aug

The Indian secondary steel market remained volatile on 24 Aug’21. The prices through the mid-sized mills fluctuated in the range of INR 100-500/t, d-o-d.

As per SteelMint assessment, Indian sponge iron offers dropped by INR 100-300/t except Durgapur where prices increased by INR 100/t. However, domestic billet offers increased by INR 100-200/t in major markets, whereas a downfall of INR 200/t was seen in Jalna (Maharashtra) and Chennai (Tamil Nadu).

Also, induction furnace (IF) route re-bar offers declined by INR 100-500/t across the country following a major drop in prices by around INR 500/t in the eastern and central regions.

Market sources expect prices will softened in view of weakening raw materials prices. Also, the supply of sponge iron has improved especially in the central & eastern regions as most of the pellet makers have started offering sponge iron in the spot market following weak pellet demand and better sponge iron margins.

Semi finished

• Induction grade (IF) billet export offers stable at $565/t, exw Durgapur (equivalent to $590-595/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 unchanged & deals reported at INR 30,100-30,200/t on exw basis.
• Jharkhand Ispat offered billet at INR 42,300/t and sponge P-DRI at INR 29,800/t exw Ramgarh.

Re-bar (12 mm)

• GOEL TMT(Fe 500D) is offering at INR 47,000/t exw Raipur (Down by INR 500/t).
• Rathi Stelmax TMT is offering at INR 48,250/t exw Delhi/NCR (Down by INR 250/t).
• Mono TMT is offering at INR 49,800/t FoR Ahmedabad (Down by INR 200/t).
• Roopam TMT offers reported at INR 48,600/t exw Jalna.
• VRKP TMT offers reported at INR 47,500/t exw Bangalore

Wire rod and structure

• Mid scale mills wire rod export deals reported at around $605-610/t exw Durgapur, equivalent to $635/t CPT Nepal, via road delivery.
• Trade reference wire rod prices in Raipur plunged by INR 500/t to INR 44,300-44,500/t exw, due to fall in base offers & increase in trade discounts. Also, assessment prices in Durgapur fell by INR 500/t to INR 44,500-44,700/t exw.
• Heavy structural steel, base price of 150 mm channel decrease by INR 500/t to INR 47,000/t in Raipur with firm trade discount of INR 1,000-1,200/t. Trade reference price of 200 mm angle is at INR 48,800-49,200/t exw.