Indian DRI, billet and rebar update – 15 Dec

Indian spot steel trades remained supportive and the prices have increased up to INR 500/t ($7) today.

According to SteelMint’s assessment, sponge iron prices have risen by INR 50-300/t in which a major hike of INR 300/t was noticed in Bellary. Following the same trend, billet prices have moved up by 100-500/t, however, a slight drop of INR 100-200/t was observed in Mumbai, Gujrat and Mandi, Gobindgarh.

In context to finished longs, rebar prices have increased by INR 100-500/t in many locations with a major price hike in Hyderabad location of around INR 500/t, d-o-d.

Market participants are optimistic about future price outlook looking at higher raw material prices. In addition to it, inventories with the mid-sized plants are also reported on an average basis.

Semi Finished

• Induction grade billet export offers increased to $505/t exw Durgapur, equivalent to $530/t CPT Nepal. About 1,500 t deals reported by participants.
• Neo Metaliks in Durgapur has kept steel grade pig iron price stable at INR 34,500/t exw, however inquiries remain limited, as per officials.
• Raipur based sponge makers have increased P-DRI offer by INR 100/t to INR 25,300/t exw, however few trades reported at INR 25,000-25,100/t FoR Raipur from outside suppliers.

Rebars (12 mm)

• GK TMT is offering at INR 42,300/t exw Raipur (Up by INR 200/t).
• Swarup TMT offers assessed at 40,100/t exw Muzaffarnagar.
• Kalika TMT offers reported at INR 42,900/t exw Jalna (Up by INR 400/t).
• Mono TMT is offering at INR 46,000/t FoR Ahmedabad.
• ARS 550 D is offering at INR 47,300/t exw Chennai.

Wire Rod and Structure

• Mid scale mills wire rod export offers surged by $5/t to around $565/t exw Durgapur, equivalent to $590/t CPT Nepal, for commercial grade.
• Trade discounts in Raipur wire rod up by INR 100/t to INR 400-600/t, however base offers stable at INR 40,800/t exw. Meanwhile offers in Durgapur rally by INR 500/t to INR 41,300-41,500/t exw.
• Raipur based heavy structure manufacturers have maintained their base price to INR 40,500/t and slightly increased trade discount by INR 200-300/t to INR 700-1,000/t, current trade price of 200 Angle is at INR 42,600-42,700/t exw.

Reference prices as on 15th Dec’20