Indian DRI, billet and rebar update – 1 Feb

Indian secondary steel prices remained stable as market was awaiting budget announcement. However, later the market has seen a significant drop in prices and have fallen up to INR 1,200/t ($16).

As per SteelMint’s assessment, sponge iron prices have declined by INR 100-800/t and billet prices by INR 100-700/t across regions. In line, rebar prices have also plunged by INR 200-1,200/t in many locations with a major fall by INR 1,000-1,200/t in Ahmedabad and Chennai.

Industry experts are expecting bearish market trends due to a cut in import duties of steel & scrap in today’s budget.

Semi Finished

• Raipur based sponge P-DRI manufacturers have floated offers at INR 23,200-23,400/t exw, however deals reported mostly from outside suppliers at around INR 23,000/t on FoR Raipur basis.
• Neo Metaliks has reduced steel grade pig iron offers by INR 300/t to INR 32,000/t exw & few deals reported in local market.
• Visa Steels is offering steel grade pig iron at INR 32,000/t exw Jajpur. (Down by INR 700/t).
• Ind Synergy (Raigarh) offered P-DRI at INR 22,300/t & billet at INR 33,500/t exw.
• Jsw Ispat Special Products Limited offered sponge P-DRI at INR 23,800/t exw, Raipur- Officials.
• Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered billet at INR 33,500/t exw Badtumkela.

Rebar (12 mm)

• GK TMT unchanged their offers at INR 41,200/t exw Raipur.
• Shrishtii TMT offers reported at INR 38,800/t exw Raigarh (Down by INR 500/t).
• Century TMT is offering at INR 38,000/t exw Muzaffarnagar (Down by INR 500/t).
• Vinayak TMT offers assessed at INR 42,800/t FoR Ahmedabad.
• Polaad TMT is offering at INR 43,000/t exw Jalna (Down by INR 500/t).

Wire Rod and Structure

• Trade discounts in Raipur wire rod stable at INR 1,600-1,800/t along with base offers at INR 39,000/t exw. However in Durgapur trade reference price fell by INR 400/t to INR 38,400-38,500/t exw.
• Raipur based heavy structure manufacturers, reduces their base price by INR 500/t to INR 39,500/t, and given trade discount by INR 900-1,200/t, current trade reference price of 200 mm Angle is at INR 41,300-41,700/t exw.

Reference prices as on 1st Feb’21