Indian DRI, billet and rebar update – 27 May

Spot trades in Indian secondary steel market turned further subdued today and prices have fallen by up to INR 700/t ($11) on a d-o-d basis.

According to SteelMint’s assessment, Indian semi-finished steel prices (including sponge iron & billet) have fallen by INR 100-800/t in many locations, however, a major fall of INR 800/t was noticed in Gujrat.

In line with this, the rebar offers have also declined by INR 100-600/t in all the markets, however a major drop of INR 600/t was seen in Muzaffarnagar & Raipur.

Industry sources stated that suppliers are seen adopting ‘wait & watch’ approach amid recent development in Chinese market. It seems the Indian producers may keep offers firm, however dull domestic demand remains a key concern for them.

Raw Material

• Jharsuguda based pellet maker sold around 10,000 t raw pellets to Central India at INR 14,600/t exw.

Semi Finished

• Induction grade billet export offers stable at around $560-565/t exw Durgapur, equivalent to $590/t CPT Nepal, via road delivery.
• Neo Metaliks in Durgapur has reduced steel grade pig iron offers by INR 300-500/t to INR 38,000/t exw.
• Sponge P-DRI price assessment slightly dropped in Raipur at INR 28,400-28,500/t as against INR 28,500/t, exw, yesterday. Offers from outside plants were floated at INR 28,400-28,500/t FoR basis.
• Jharsuguda, Odisha based sponge supplier offered FeM 79 P-DRI at around INR 28,400-28,500/t FoR Raipur.
• Raigarh based Singhal Steel offered P-DRI at INR 28,000/t & Billet at INR 40,000/t exw.
• Jindal Steel is offering steel grade pig iron at INR 38,700/t exw Raigarh.
• Jharkhand based manufacturer offered billet at INR 41,200/t & sponge C-DRI mix (60:40) at INR 29,300/t exw Ramgarh.
• Mahavir Ferro Alloys offered billet at INR 40,000/t exw Rourkela, however no major deals, as per officials.

Rebar (12 mm)

• GK TMT offers stable at INR 47,500/t exw Raipur.
• Shrishtii TMT offers reported at INR 45,300/t exw Raigarh (Down by INR 500/t).
• Metalics 550D TMT offers reported at INR 45,800/t exw Sambalpur (Down by INR 400/t).
• Rathi Stelmax TMT is offering at INR 48,000/t exw Delhi/NCR (Down by INR 250/t).
• Century TMT is offering at INR 46,500/t exw Muzaffarnagar (Down by INR 500/t).
• Mono TMT is offering at INR 48,900/t FoR Ahmedabad (Down by INR 300/t).
• Polaad TMT offers stable at INR 49,000/t exw Jalna.

Wire Rod and Structure

• Mid scale mills wire rod export offers stand at $615-620/t exw Durgapur, equivalent to $645/t CPT Nepal, via road delivery.
• Trade discounts for wire rod in Raipur increased to INR 700-900/t, following which trade reference price dropped by INR 500/t to INR 43,500-43,700/t exw. However, prices in Durgapur unaltered at INR 44,500-44,700/t exw.
• Raipur based heavy structure steel manufacturers, kept stable the base price of 150 mm channel at INR 46,500/t and given trade discount by INR 1,200-1,500/t. Current trade reference prices of 200 mm angle are at INR 48,000-48,400/t exw.

Reference prices as on 27th May’21