Indian DRI, billet and rebar update – 18 Feb

Indian secondary steel market trades gained momentum in the second half today after observing a dull start. Prices have increased up to INR 700/t ($10), d-o-d.

As per the assessment, prices for domestic sponge iron and billet have surged by INR 100-700/t in most of the locations. In addition to it, rebar prices moved up by INR 200-700/t across major markets.

Further trade sources are optimistic about future market trends on account of sufficient bookings with domestic producers & rally in global scrap & billet prices.

Raw Material

• BMM Ispat sold around 10,000 t pellets in nearby market at INR 11,000/t exw Bellary.
• Odisha based sponge manufacturer booked 5,000 t Rb2 coal at INR 5,650/t from Paradeep port.
• Bellary based sponge manufacturer booked around 8,000 t Rb2 coal at INR 5,700/t from Mangalore port.

Semi Finished

• Indian sponge iron export offers increased by $20/t, w-o-w, to $375/t CPT Benapole, equivalent to $395/t CFR Chittagong, Bangladesh.
• Induction grade billet export offers slightly rise to around $505/t exw Durgapur, equivalent to $530/t CPT Nepal. Few parcels have been sold, as per market sources.
• Raipur based sponge P-DRI manufacturers have further raised offers by INR 300-500/t to INR 25,300-25,500/t exw & sufficient deals reported. Supply shortage led to a constant surge in offers.
• Durgapur based Neo Metaliks has further raised steel grade pig iron price by INR 300/t to INR 34,000/t & deals reported by officials.
• Raigarh based Singhal Steel offered billet at INR 36,300/t exw.
• Rourkela based manufacturer, Mahavir Ferro Alloys offered billet at INR 36,500/t exw. (Up by INR 500/t).
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 25,000/t exw Bellary (Up by INR 200/t).
• BMM Ispat offered FeM 80 P-DRI lumps at INR 25,000/t exw Bellary & around 1,500 t deals reported in nearby region.

Rebar (12 mm)

• GK TMT is offering at INR 44,000/t exw Raipur (Up by INR 500/t).
• BS TMX TMT offers reported at INR 41,500/t exw Raigarh.
• Wonder Gold TMT offers concluded at INR 41,500/t exw Muzaffarnagr (Up by INR 300/t).
• Vinayak TMT is offering at INR 44,800/t FoR Ahmedabad (Up by INR 1,000/t).
• Polaad TMT is offering at INR 45,500/t exw Jalna (Up by INR 1,000/t).
• Shubhlabh TMT offers reported at INR 41,800/t exw Rourkela.

Wire Rod and Structure

• Mid scale mills wire rod export offers rise further by $5/t to around $565/t exw Durgapur, equivalent to $590/t CPT Nepal.
• Trade discount in Raipur wire rod is hovering at INR 800/t & trade reference price stood at INR 40,700-41,000/t exw. Meanwhile, prices in Durgapur rose by INR 200/t to INR 40,700-40,900/t exw.
• Heavy structural steel manufacturers at Raipur, kept base price stable of 150 mm Channel at INR 41,500/t, and given trade discount by INR 700-1,000/t, current trade reference price of 200 mm Angle is stood at INR 43,500-43,800/t exw.

Reference prices as on 18th Feb’21