Indian DRI, billet and rebar update – 11 Aug

Spot trading activity in the Indian secondary steel market regained momentum on 11 Aug’21, with prices increasing by up to INR 700/t ($9/t) d-o-d.

As per SteelMint assessment, semi-finished (including sponge iron and billet) steel prices rose by INR 100-700/t with the maximum increase of INR 700/t seen in Mandi Gobindgarh’s billet market. On the other hand, a slight fall in prices of around INR 100/t was witnessed in Chennai.

Induction furnace route rebar prices, too, moved up by INR 200-600/t across major locations, following a major hike of INR 600/t in central India (Raipur and Raigarh).

Raw material

• Jharsuguda based pellet maker offered raw pellets at INR 14,000/t exw.
• Odisha based sponge manufacturer booked around 5,000 t RB2 coal at INR 8,800/t ex- Paradip port.

Semi finished

• Induction grade (IF) billet export offers increased to around $580/t, exw-Durgapur (equivalent to $605-610/t CPT Nepal).
• Neo Metaliks in Durgapur has reduced steel grade pig iron offers by INR 200/t to INR 38,800/t exw.
• Sponge P-DRI prices in Raipur rose by INR 300/t & healthy deals reported at around INR 31,100-31,300/t exw & FoR Raipur.
• About 2,000 t sponge C-DRI (FeM 80%, lumps 100%) export deals reported to Bangladesh at around $460/t CPT Benapole, equivalent to $485/t CFR Chittagong.
• Sources reported Chandrapur (Maharashtra) based manufacturers offered sponge P-DRI (FeM 80) at INR 31,300/t exw.
• Mahavir Ferro Alloys sold around 500 t sponge iron (mix material) at INR 32,500/t exw Rourkela.
• BMM Ispat offered FeM 80 P-DRI lumps at INR 29,100/t exw Bellary (Up by INR 300/t).
• BIOP Steels in South India has sold around 500 t FeM 80 C-DRI lumps in nearby market at INR 30,700/t exw Bellary. Later on offers increased to INR 30,800/t exw.

Rebar (12 mm)

• GK TMT(Fe 500D) is offering at INR 47,800/t exw Raipur(Up by INR 300/t).
• Shrishtii TMT offers reported at INR 45,800/t exw Raigarh (Up by INR 300/t).
• Swarup TMT is offering at INR 46,600/t exw Muzaffarnagar (Up by INR 200/t).
• Vinayak TMT offers stable at INR 50,200/t FoR Ahmedabad.
• Polaad TMT is offering at INR 49,000/t exw Jalna (Up by INR 100/t).
• Metalics 550D TMT offers reported at INR 46,400/t exw Sambalpur (Up by INR 400/t).
• ARS TMT(Fe 550D) offer reported at INR 52,100/t exw Chennai.

Wire rod and structure

• Mid scale mills wire rod export offers remain stable at $615-620/t exw Durgapur, equivalent to $645/t CPT Nepal, via road delivery.
• Trade reference wire rod prices in Raipur gained by INR 600/t to INR 46,000-46,300/t exw, due to fall in trade discounts. Also, assessment prices in Durgapur rose by INR 500/t to INR 45,800-46,000/t exw.
• Raigarh based Singhal Steel concluded around 800 t deals of wire rod at INR 45,400-45,500/t exw.
• Heavy structural steel, base price of 150 mm channel increase by INR 300/t to INR 47,500/t in Raipur with firm trade discount of INR 700-1,000/t. Trade reference price of 200 mm angle is at INR 49,500-49,900/t exw.

Reference prices as on 11th Aug’21