Indian DRI, billet and rebar update – 20 Jul

The Indian secondary steel market was buoyed up on 20 Jul’21, with prices moving higher in major locations by up to INR 1,000/tonne (t) ($13), d-o-d.

As per SteelMint assessment, Indian sponge iron offers gained INR 100-300/t in many regions. Domestic billet prices surged INR 300-1,000/t across the country with a major hike of INR 1,000/t witnessed in Hyderabad, whereas offers fell by INR 300/t in the Chennai market.

Induction furnace route rebar prices increased up by to INR 200-800/t. The Chennai rebar market, however, witnessed a fall in offers by INR 300/t.

Demand remained active for semis, while lack of inquiries for finished steel products was observed as buyers felt it would be risky to take positions with expectations of prices trending downwards. However, leading industry participants believe that prices are unlikely to drop sharply as slight shortfall prevails in the sponge iron and billet spot market due to productions curbs, especially in the central and eastern regions.

Raw material

• Jharsuguda based pellet maker sold around 17,000 t raw pellets to local region at INR 14,500/t exw.
• Bellary based sponge manufacturer booked around 3,000 t RB2 coal at INR 8,900/t ex- Krishnapatnam port.
• Karnataka based BMM Ispat sold around 12,000-13,000 t pellets in nearby market at INR 12,700-12,800/t exw Bellary since yesterday.

Semi finished

• Induction grade billet export offers increased by $5/t to $560-565/t exw Durgapur (equivalent to $590/t CPT Nepal), via road delivery. However, demand remains low & a few bids reported at around $550-555/t exw Durgapur.
• Durgapur based Neo Metaliks has raised steel grade pig iron offers by INR 200/t to INR 37,700/t exw & few deals reported by officials.
• Sponge P-DRI prices in Raipur rose by INR 300/t & deals reported at INR 29,500-29,600/t on exw & FoR basis.
• Jharsuguda, Odisha based sponge supplier offered FeM 80 P-DRI at around INR 29,000/t exw (Up by INR 500/t).
• BMM Ispat offered FeM 80 P-DRI lumps at INR 29,000/t exw Bellary & around 2,500 t deals reported in nearby region.
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 30,000/t exw Bellary (Up by INR 400/t).

Rebar (12 mm)

• Shrishtii TMT offers reported at INR 45,300/t exw Raigarh (Up by INR 600/t).
• Century TMT is offering at INR 45,500/t exw Muzaffarnagar (Up by INR 700/t).
• CPC Thermex TMT offers reported at INR 44,300/t exw Durgapur (Up by INR 200/t).
• A One Gold TMT offers reported at INR 48,400/t exw Bellary.
• Metalics 550D TMT offers reported at INR 46,200/t exw Sambalpur (Up by INR 700/t).

Wire rod

• Mid scale mills wire rod export offers hovering $605/t exw Durgapur, equivalent to $630-635/t CPT Nepal, via road delivery.
• Trade reference wire rod prices in Raipur unaltered due to increase in trade discounts & base price, few deals reported at INR 45,500-45,900/t exw. However, assessment prices in Durgapur surged by INR 500/t to INR 45,300-45,500/t exw.

Reference prices as on 20th Jul’21