Indian DRI, billet and rebar update – 17 Jun

The Indian secondary steel market continued to remain dull and subdued on 17 Jun’21, with prices dropping by up to INR 500/t ($7) day-on-day.

As per SteelMint assessment, semi-finished steel (sponge iron and billet) offers fell in the range of INR 100-500/t in many regions of the country, with a significant drop of INR 500/t witnessed in Mandi Gobindgarh, Rourkela and Hyderabad’s billet market.

In addition, induction furnace grade rebar prices decreased by INR 100-500/t across markets: the West, East and Southern markets witnessed major fall in prices to the tune of INR 500/t, as per SteelMint reports.

According to trade sources, poor offtake of finished steel products has resulted in bids for semi-finished products remaining low. This, in turn, has led to a constant fall in prices and the conversion spread (margins) of standalone plants continue to remain lower than required.

Semi finished

• Induction grade billet export offers hovering at $570/t exw Durgapur, equivalent to $595-600/t CPT Nepal, via road delivery.
• Sponge P-DRI prices slightly drop in Raipur by INR 100/t to INR 30,600-30,700/t exw & FoR, meanwhile deals reported through the participants.
• Jharsuguda, Odisha based sponge supplier offered FeM 79 P-DRI at around INR 30,600-30,700/t FoR Raipur.
• BMM Ispat offered FeM 80 P-DRI lumps at INR 29,000/t exw Bellary (Down by INR 200/t).
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 29,800/t exw Bellary (Down by INR 200/t).

Rebar (12 mm)

• GK TMT offers stable at INR 48,500/t exw Raipur.
• Shrishtii TMT offers reported at INR 46,000/t exw Raigarh (Down by INR 300/t).
• Metalics 550D TMT offers reported at INR 47,200/t exw Sambalpur.
• Rathi Stelmax TMT kept offers stable at INR 49,750/t exw Delhi/NCR.
• Swarup TMT is offering at INR 47,600/t exw Muzaffarnagar (Down by INR INR 700/t).
• Mono TMT is offering at INR 49,100/t FoR Ahmedabad (Down by INR 600/t).
• Polaad TMT offer unchanged at INR 48,000/t exw Jalna.
• ARS TMT(Fe 550 D) offer reported at INR 54,800/t exw Chennai.

Wire rod and structure

• Mid scale mills wire rod export offers hovering at $620/t exw Durgapur, equivalent to $645-650/t CPT Nepal, via road delivery.
• Trade reference prices for wire rod in Raipur dropped by INR 200/t to INR 45,300-45,500/t due to increase in discount. Also, prices in Durgapur fell by INR 300/t to INR 45,200-45,300/t exw.
• Raipur based heavy structure steel manufacturers, kept stable the base price of 150 mm channel at INR 46,900/t and given trade discounts by INR 500-800/t. Trade reference prices of 200 mm angle are at INR 49,100-49,500/t exw.

Reference prices as on 17th June’21