Indian DRI, billet and rebar update – 16 Mar

Spot trades in Indian secondary steel market remained dull today, hence prices have declined up to INR 1,000/t ($14), d-o-d basis.

As per SteelMint’s assessment, the domestic sponge iron and billet prices have dropped by INR 100-400/t with a major fall of around INR 1,000/t in billet prices in Gujarat (Ahmedabad & Bhavnagar). Also, rebar prices have dipped by INR 100-500/t across major markets.

Industry sources expect steel prices may drop further, while few sources feel that billet prices should rebound as furnaces production are likely to remain disturbed in the Northern India (Punjab) owing to announced halt activities by scrap traders from 17th Mar’21.

Raw Material

• Karnataka based BMM Ispat offered raw pellets at INR 11,500/t exw Bellary.
• Bhavnagar (Gujarat) based Ingot manufacturers have received silicon manganese offers from the Raipur based suppliers at INR 86,000/t FoR.

Semi Finished

• Eastern India based participants reported about 1,000 t sponge C-DRI export deals to Bangladesh is at around $405/t CFR Chittagong.
• Induction grade billet export offers remain stable at around $535/t exw Durgapur, equivalent to $560/t CPT Nepal. However no fresh deals were reported.
• Raipur based sponge P-DRI manufacturers have kept offers stable at INR 27,500/t exw, however deals from outside reported at INR 27,200-27,300/t on FoR basis.
• Neo Metaliks in Durgapur has slightly lower steel grade pig iron offer by INR 100/t to INR 35,500/t exw.
• Ind Synergy (Raigarh) offered P-DRI at INR 26,500/t & billet at INR 38,300/t exw.
• Raigarh based steel manufacturers getting pig iron offers from Odisha at INR 36,800-37,000/t FoR Raigarh.
• Bhaskar Steel and Ferro Alloy Ltd has offered billet at INR 38,200/t exw Badtumkela.
• BMM Ispat offered FeM 80 P-DRI lumps at INR 25,300/t exw Bellary (Down by INR 100/t).

Rebar (12 mm)

• Rathi Stelmax TMT offers reported at INR 45,900/t exw Delhi/NCR.
• Shrishtii TMT offers reported at INR 42,900/t exw Raigarh (Down by INR 100/t).
• Odisha based Metalics 550D TMT offers reported at INR 45,300/t exw Sambalpur (Down by INR 200/t).
• Century TMT is offering at INR 43,800/t exw Muzaffarnagar (Down by INR 200/t).
• Mono TMT is offering at INR 47,000/t FoR Ahmedabad (Down by INR 300/t).
• Kalika TMT kept offers stable at INR 47,200/t exw Jalna.

Wire Rod and Structure

• Mid scale mills wire rod export offers drop to around $590-595/t exw Durgapur, equivalent to $615-620/t CPT Nepal.
• Trade discounts in Raipur wire increased to INR 1,400-1,700/t, following which trade reference price dropped by INR 600/t to INR 41,800-42,000/t exw. Also, prices in Durgapur fell by INR 300/t to INR 42,500-42,700/t exw.
• Raipur based heavy structure steel manufacturers, reduce the base price of 150 mm Channel by INR 500/t to INR 43,500/t, and given trade discount by INR 1,000-1,300/t, current trade reference price of 200 mm Angle is at INR 45,100-45,500/t exw.

Reference prices as on 16th Mar’21