Indian DRI, billet and rebar update – 18 Jan

Indian secondary steel market has observed further fall in prices and have declined upto INR 1,400/t ($19) today.

As per the SteelMint’s assessment, sponge iron and billet prices have dropped by INR 100-700/t in many locations and a major price fall in billet was noticed in southern India (Hyderabad and Chennai) by INR 800-1,400/t. Also, rebar prices plunged by INR 100-500/t with a sharp fall of INR 800-1,000/t being observed in Durgapur and Hyderabad respectively.

The industry sources highlighted that major buyers continued to remain away from taking positions due to constant drop in prices. The demand is expected to find support, once prices stabilize.

Raw Material

• Karnataka based BMM Ispat offered raw pellets at INR 11,900/t exw Bellary.

Semi Finished

• Induction grade billet export offers hovering at $515-520/t exw Durgapur, equivalent to $540-545/t CPT Nepal.
• Neo Metaliks in Durgapur has maintained steel grade pig iron offer firm at INR 35,300/t exw.
• Raipur based sponge P-DRI makers have reduced offers by INR 200/t to INR 25,300/t, however few buying inquiries reported at INR 25,000-25,100/t exw.
• Visa Steels is offering steel grade pig iron at INR 35,000/t exw Jajpur.
• Ind Synergy (Raigarh) offered P-DRI at INR 25,700/t & billet at INR 37,700/t exw.
• Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI lumps at INR 25,000/t & billet at INR 37,500/t exw Badtumkela.
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 25,800/t exw Bellary.
• BMM Ispat decreased offers by INR 100/t for FeM 80 P-DRI lumps to INR 25,300/t exw Bellary. However no deals reported from officials.

Rebar (12 mm)

• BS TMX TMT offers reported at INR 42,000/t exw Raigarh (Down by INR 300/t).
• GK TMT is offering at INR 45,000/t exw Raipur (Down by INR 300/t).
• Rathi Stelmax TMT offers assessed at INR 44,500/t exw Delhi/NCR.
• Mono TMT is offering at INR 47,750/t FoR Ahmedabad (Up by INR 400/t).
• Kalika TMT offers reported at INR 48,000/t exw Jalna.
• ARS 550 D offers reported at INR 51,800/t exw Chennai.

Wire Rod and Structure

• Trade discount in Raipur wire rod increased by INR 500/t to INR 1,800-2,000/t, however base offers remain unchanged at INR 44,500/t exw. Also, trade reference price in Durgapur fell by INR 500/t to INR 43,500/t exw.
• Raipur based heavy structure manufacturers, kept stable their base price at INR 43,000/t, and maintained trade discount by INR 600-1,000/t, current trade price of 200 mm Angle is at INR 45,100-45,500/t exw.

Reference prices as on 18th Jan’21