Indian DRI, billet and rebar update – 11 Jan

Indian secondary steel prices remained on downtrend due to limited spot trades and prices have dropped by up to INR 500/t ($7) today.

As per SteelMint’s assessment, induction grade billet & rebar prices have declined by INR 100-500/t, while sponge iron offers have fallen by INR 100-300/t, d-o-d, in most of the locations.

Further trade sources stated that, amid less scope of rebound in prices, the suppliers are in a hurry to trade material, resulting in a significant fall in prices. On another side, buyers are waiting for clear market direction before taking positions.

Raw Material

• Karnataka based BMM Ispat offered raw pellets to INR 11,900-12,000/t exw Bellary.

Semi Finished

• Raipur based sponge P-DRI manufacturers have floated offers at INR 26,200-26,300/t, however few trades reported at INR 26,000/t on exw & FoR basis.
• Induction grade billet export offers to Nepal dropped by $5-10/t to $535-538/t (equivalent to 570/t CPT Nepal), however buyers moved away to take positions on assumption of further lower offers, as per participants.
• Indian sponge iron export offers fall by $10/t to $390-395/t CPT Benapole (equivalent to $410/t CFR Chittagong, Bangladesh). The prices declined on account of fall in domestic prices.
• Neo Metaliks in Durgapur has further lowered steel grade pig iron prices by INR 200/t to INR 35,800/t exw, however inquiries remain limited, as per officials.
• Visa Steels concluded deals of around 1,000 t steel grade pig iron in local region at INR 35,900/t exw Jajpur.
• Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI lumps at INR 26,600/t & billet at INR 39,200/t exw Badtumkela.
• Aryan Ispat & Power Pvt Ltd offered FeM 80 C-DRI at INR 26,000/t exw Sambalpur.
• Odisha based Rungta Sponge iron plant offered FeM 78 C-DRI mix (60:40) at INR 25,000/t exw kasira.
• Hare Krishna has offered FeM 79-80 P-DRI at INR 26,500-26,700/t exw Bellary.
• BMM Ispat has kept offers unaltered for FeM 80 P-DRI lumps at INR 26,800/t exw Bellary. However no deals reported from officials.

Rebar (12 mm)

• BS TMX TMT offers reported at INR 44,200/t exw Raigarh.
• Rathi Stelmax TMT offer assessed at INR 45,750/t exw Delhi/NCR.
• Century TMT is offering at INR 43,700/t exw Muzaffarnagar.
• Mono TMT is offering at INR 48,750/t FoR Ahmedabad (Down by INR 400/t).
• Polaad TMT kept stable their offer at INR 49,400/t exw Jalna.

Wire Rod and Structure

• Mid scale mills wire rod export offers plunged by $5-10/t with fresh offers of around $625-630/t exw Durgapur, equivalent to $650-655/t CPT Nepal.
• Trade discount in Raipur wire rod is hovering at INR 1,500/t & base offers unchanged at INR 46,500/t exw. Also, trade reference price in Durgapur down by INR 300/t to INR 45,800-46,300/t exw.
• Raipur based heavy structure manufacturers, reduces their base price by INR 500/t to INR 44,500/t, and given trade discount by INR 1,000-1,300/t, current trade price of 200 Angle is at INR 46,200-46,600/t exw.

Reference prices as on 11th Jan’21