Indian DRI, billet and rebar update – 1 June

The Indian secondary steel market continue to find support as prices have increased by up to INR 700/t ($10) on a d-o-d basis.

The semi-finished steel market (including sponge iron and billet) witnessed an upward movement in prices by INR 200-700/t across many locations. Notably, a major increase of INR 700/t was noticed in the sponge iron markets in Bellary and Hyderabad.

In addition, induction furnace grade rebar offers have also moved up by INR 100-600/t, with a significant hike of INR 600/t seen in Muzaffarnagar.

Sources remain optimistic about the price outlook in view of anticipated rise in demand with the lifting of lockdown restrictions in many states. Moreover, hike in steel prices announced by some primary mills has also fuelled trade activities.

Raw Material

• Karnataka based BMM Ispat sold around 6,000 t pellets in nearby market at INR 12,700-12,800/t exw Bellary. Later on offers increased to INR 13,000/t exw.
• A Chandrapur (Maharashtra) based sponge iron manufacturer booked around 4,000 t raw pellet from Bellary at INR 15,000/t FoR.
• Singhal Steel, Raigarh based manufacturer has offered 60-14 silico manganese at INR 90,000/t exw.
• Odisha based sponge manufacturer booked around 5,000 t RB2 coal at INR 8,000/t ex- Paradip port.
• Karnataka based sponge manufacturers getting Rb2 coal offers at INR 7,900/t ex- Krishnapatnam port.

Semi Finished

• Induction grade billet export offers stood at around $575/t exw, eastern India, equivalent to $605/t CPT Nepal.
• Neo Metaliks in Durgapur has kept steel grade pig iron prices firm at INR 38,000/t exw.
• Sponge P-DRI prices in Raipur further rise by INR 500/t and trades reported at INR 29,900-30,000/t as against offers of INR 30,200-30,300/t exw & FoR basis.
• Odisha based sponge supplier sold around 800 t FeM 80 C-DRI mix material at around INR 31,300-31,400/t FoR Raipur.
• Maharashtra (Jalna) based smelters booked around 1,000 t FeM 80 C-DRI lumps from Odisha at around INR 32,900/t FoR Jalna.
• Jharsuguda, Odisha based sponge supplier offered FeM 79 P-DRI at around INR 30,300/t FoR Raipur.
• Sources reported Chandrapur (Maharashtra) based manufacturers offered sponge P-DRI (FeM 80) at INR 30,200/t exw.
• Ind Synergy offered P-DRI at INR 29,100/t & billet at INR 41,500/t exw Raigarh.
• BMM Ispat offered FeM 80 P-DRI lumps at INR 28,300/t exw Bellary (Up by INR 700/t).
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 28,700/t exw Bellary (Up by INR 500/t).

Rebar (12 mm)

• GK TMT is offering at INR 48,300/t exw Raipur (Up by INR 300/t).
• Shrishtii TMT offers reported at INR 46,100/t exw Raigarh (Up by INR 500/t).
• Metalics 550D TMT offers reported at INR 46,700/t exw Sambalpur (Up by INR 900/t).
• Century TMT offers reported at INR 47,700 (Up by INR 400/t).
• Mono TMT is offering at INR 49,000/t FoR Ahmedabad (Up by INR 400/t).
• Polaad TMT offer stable at INR 49,000/t exw Jalna.

Wire Rod and Structure

• Mid scale mills wire rod export offers reported at $620-625/t exw Durgapur, equivalent to $655/t CPT Nepal, via road delivery.
• Trade discounts for wire rod in Raipur remained low at INR 200-300/t & base offers up by INR 600/t to INR 46,600/t exw. Also, prices in Durgapur have risen by INR 500/t to INR 45,300-45,500/t exw.
• Raipur based heavy structure steel manufacturers, increased the base price of 150 mm channel by INR 300/t to INR 45,800/t and given trade discounts by INR 200-400/t. Trade reference prices of 200 mm angle are at INR 48,200-48,600/t exw.

Reference prices as on 1st June’21