Indian DRI, billet and re-bar update – 3 Sep

Indian induction furnace (IF) route steel market sentiments remained dull on 3 Sept’21 as steel prices of mid-sized mills declined by up to INR 500/t ($7), d-o-d.

As per SteelMint assessment, sponge iron offers dropped by INR 50-300/t in many regions except the south where prices moved up by INR 100-200/t (in Bellary and Hyderabad). Domestic billet prices declined by INR 50-200/t in most locations.

Moreover, IF route re-bar markets also witnessed dull trading activity as prices dropped by INR 100-500/t, whereas offers increased slightly by INR 100-300/t in Delhi/NCR, Raigarh and Bangalore.

Raw material

• Karnataka based BMM Ispat offered raw pellets at INR 11,500/t exw Bellary.
• Jharsuguda based pellet maker offered raw pellets at INR 11,400/t exw.

Semi finished

• Indian IF route billet export offers slightly drop by $5/t to around $570/t exw Durgapur, equivalent to $595-600/t CPT Nepal.
• Neo Metaliks in Durgapur has kept steel grade pig iron offers stable at INR 38,000/t exw.
• Sponge P-DRI offers in Raipur unchanged at INR 30,000-30,200/t, however SteelMint’s assessment price fell by INR 100/t to INR 29,800/t exw, in a few deals.
• Sources reported Chandrapur (Maharashtra) based manufacturers offered sponge P-DRI (FeM 80) at INR 29,800/t exw.
• Jharkhand based manufacturers sold around 1,800 t billet at 41,800/t and almost 1,100 t sponge P-DRI at INR 29,000-29,100/t on exw Ramgarh basis.
• Jharsuguda, Odisha based sponge supplier offered FeM 79 P-DRI at around INR 29,800-29,900/t FoR Raipur.

Rebar (12 mm)

• GK TMT(Fe 500D) is offering at INR 47,000/t exw Raipur (Down by INR 300/t).
• Shrishtii TMT offers reported at INR 45,000/t exw Raigarh.
• Rathi Stelmax TMT offers reported at INR 47,750/t exw Delhi/NCR.
• National TMT is offering at INR 50,700/t FoR Ahmedabad (Down by INR 100/t).
• Polaad TMT offers stable at INR 48,500/t exw Jalna.
• Metalics 550D TMT offers reported at INR 45,500/t exw Sambalpur.

Wire rod and structure

• Mid scale mills wire rod export offers hovering at $615/t exw Durgapur, equivalent to $640-645/t CPT Nepal, via road delivery.
• Trade reference wire rod prices in Raipur fell by INR 300/t to INR 44,500-44,700/t exw due to increase in trade discounts & fall in base offers. However, prices in Durgapur are stable at INR 44,500-44,700/t exw-Durgapur.
• Heavy structural steel, base price of 150 mm channel offers stable at INR 46,800/t in Raipur with firm trade discount of INR 1,000-1,300/t. Trade reference price of 200 mm angle is at INR 48,500-48,800/t exw.