Indian DRI, billet and rebar update – 17 Mar

Indian secondary steel market has noticed a price decline today as well and prices have dipped upto INR 1,000/t ($14), d-o-d basis.

According to the daily assessment, the domestic sponge iron and billet prices have dropped by INR 100-500/t with a major fall of INR 600-1,000/t in billet seen in Western & Southern parts of India. Also, rebar prices have fallen by INR 100-700/t across major locations.

Trade activities in Northern India – Punjab was largely mute today due to ongoing strike of scrap suppliers & furnace owners due to GST concerns. This seems to be the major factor behind subdued demand in major locations.

Raw Material

• Karnataka based BMM Ispat offered raw pellets at INR 11,500/t exw Bellary.
• Singhal Steel, Raigarh based manufacturer has offered 60-14 silico manganese at INR 84,000/t exw.
• Odisha based sponge manufacturers getting Rb2 coal offers at INR 6,250/t from Paradeep port.

Semi Finished

• Induction grade billet export offers stood at $530-535/t exw Durgapur, equivalent to $560/t CPT Nepal. However demand remains weak, as per participants.
• Raipur based sponge P-DRI manufacturers have reduced offers by INR 200-300/t to INR 27,200/t exw, however deals reported mostly from outside at INR 27,000-27,100/t on FoR basis.
• Neo Metaliks in Durgapur has kept steel grade pig iron offer firm at INR 35,500-35,600/t exw.
• Raigarh based steel manufacturers getting pig iron offers from Odisha at INR 36,500-36,600/t FoR Raigarh.
• Ind Synergy (Raigarh) offered P-DRI at INR 26,200/t & billet at INR 37,900/t exw.
• Raigarh based Singhal Steel offered P-DRI at INR 26,300/t & Billet at INR 37,800/t exw.
• Bhaskar Steel and Ferro Alloy Ltd has offered billet at INR 38,000/t exw Badtumkela (Down by INR 200/t).
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 25,700/t exw Bellary (Down by INR 300/t).
• Hare Krishna concluded deals of FeM 79-80 C-DRI lumps in local region at INR 25,600/t exw Bellary.
• BMM Ispat kept offers unchanged for FeM 80 P-DRI lumps at INR 25,300/t exw Bellary

Rebar (12 mm)

• Shrishtii TMT offers reported at INR 42,700/t exw Raigarh (Down by INR 200/t).
• Metalics 550D TMT offers reported at INR 44,800/t exw Sambalpur (Down by INR 500/t).
• Rathi Stelmax TMT offers stable at INR 45,900/t exw Delhi/NCR.
• Wonder Gold TMT is offering at INR 43,600/t exw Muzaffarnagar (Down by INR 100/t).
• Vinayak TMT offers reported at INR 46,300/t FoR Ahmedabad.
• Polaad TMT is offering at INR 47,200/t exw Jalna (Down by INR 200/t).

Wire Rod and Structure

• Mid scale mills wire rod export offers drop to around $585/t exw Durgapur, equivalent to $610-615/t CPT Nepal.
• Trade discounts in Raipur wire rod reported at INR 1,200-1,400/t & base offers slump by INR 500/t to INR 42,800/t, following which trade reference price dropped to INR 41,400-41,600/t exw. Also, prices in Durgapur fell by INR 300/t to INR 42,200-42,400/t exw.
• Trade discount given by Raipur based heavy structure steel manufacturers is at INR 900-1,200/t, and current trade reference price of 200 mm Angle is at INR 44,700-45,000/t exw.

Reference prices as on 17th Mar’21