Indian DRI, billet and rebar update – 24 Feb

Indian secondary steel market has observed an uptrend today and prices have increased up to INR 900/t ($12) d-o-d. Prices in the Central India gained on the back of improved billet demand from outside state buyers, while a slight improved demand was also reported in other markets.

According to the daily assessment, sponge iron prices have moved up by INR 200-400/t. Also, billet prices have boosted up by INR 300-900/t & rebars price by INR 100-600/t, across major locations.

Sources are expecting, volatility in prices on account of subdued domestic demand as well improved availability of raw materials. However, if global demand boosts, the Indian domestic steel market may remain supported.

Raw Material

• BMM Ispat sold around 5,000 t pellets in nearby market at INR 11,300/t exw Bellary.
• JSW Ispat Special Products Limited offered 60-14 silico manganese at INR 70,000-70,500/t exw Raipur- Officials.
• Bellary based sponge manufacturers booked around 30,000 t RB2 coal at INR 6,000/t from Mangalore port.

Semi Finished

• Induction grade billet export offers rebound by $10-15/t to $512-515/t exw Durgapur, equivalent to $540/t CPT Nepal, via road delivery. About 2,000 t deals reported on revised offers by trade sources.
• Durgapur based Neo Metaliks has further reduced steel grade pig iron offer by INR 500/t to INR 35,000/t exw.
• Raipur based sponge manufacturers have raised P-DRI offers by INR 400/t to INR 25,700-25,900/t & sufficient deals reported.
• Raigarh based Singhal Steel offered billet at INR 36,500-36,600/t exw (Up by INR 300/t).
• JSW Ispat Special Products Limited offered sponge DR-CLO grade at INR 27,500/t exw Raipur.
• Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered billet at INR 36,300/t exw Badtumkela.
• BIOP Steels in South India has kept FeM 80 C-DRI lumps offers unchanged at INR 25,200/t exw Bellary.
• BMM Ispat offered FeM 80 P-DRI lumps at INR 25,100/t exw Bellary (Down by INR 200/t).

Rebar (12 mm)

• GK TMT offers stable at INR 43,800/t exw Raipur.
• Shrishtii TMT offers reported at INR 41,600/t exw Raigarh (Up by INR 400/t).
• Rathi Stelmax TMT offers reported at INR 44,100/t exw Delhi/NCR.
• Century TMT is offering at INR 42,300/t exw Muzaffarnagar (Up by INR 300/t).
• Vinayak TMT kept offers stable at INR 45,500/t FoR Ahmedabad.
• Kalika TMT is offering at INR 45,900/t exw Jalna (Up by INR 500/t).

Wire Rod and Structure

• Mid scale mills export offers for commercial grade wire rod stood at around $570-575/t exw Durgapur, equivalent to $595-600/t CPT Nepal.
• Trade discounts in Raipur wire rod drop to INR 1,000-1,200/t, following which trade reference price up by INR 500/t to INR 40,300-40,500/t exw. Also, prices in Durgapur surged by INR 400/t to INR 41,000-41,200/t exw.
• Raipur based heavy structure steel manufacturers, kept stable the base price of 150 mm Channel at INR 41,700/t, and given trade discount by INR 700-1,000/t, current trade reference price of 200 mm Angle is at INR 43,400-43,800/t exw.

Reference prices as on 24th Feb’21