Indian DRI, billet & rebar update- 11th Aug

Indian steel market remained strong and the prices were supportive with spot trades seen happening across major markets. Sponge iron prices further increased by INR 200-800/t with major hike of INR 700-800/t in southern region.

Also, billet prices surged by INR 150-500/t in many regions except central India where it fell by INR 50-100/t, d-o-d.

In context to finished products, rebar prices moved up by INR 200-700/t following hike in sponge iron & billet offers along with scrap prices which rose upto INR 800/t, d-o-d, in Maharashtra & Gujarat.

Industry sources believe that prices would remain strong on account of shortage of raw materials amid higher prices along with limited conversion of standalone rebar & billet plants.

Raw Material

• Raigarh based steel manufacturer concluded deals of around 12,000 t raw pellets at INR 7,800/t exw
• BMM Ispat sold around 6,000 t pellets in nearby market at INR 7,300/t exw Bellary.

Semi Finished

• Indian induction grade billet export offers increased to $398-400/t exw Durgapur, equivalent to $425/t CPT Raxaul border, Nepal.
• Indian sponge iron export offers further increased to $300-305/t CPT Benapole, equivalent to $320-325/t CFR Chittagong, Bangladesh. No fresh deals as buyers bidding at low offers, exporters from eastern region mentioned.
• Raipur based sponge manufacturers have further raised P-DRI offers by INR 200/t to INR 20,500-20,700/t exw. Few deals reported at near to INR 20,500/t exw, by a couple of manufacturers.
• Visa Steels concluded deals of around 700 t steel grade pig iron at INR 28,000/t exw for Raipur, Central India.
• As per Ingot/billet manufacturers in Raigarh, Central India steel grade pig iron offers by traders at around INR 28,800-29,000/t exw.
• Central India, Durg based manufacturer sold around 500 t billet at INR 30,700/t exw in local region.
• Ind Synergy (Raigarh) offered P-DRI at INR 19,600-19,700/t & billet at INR 30,200/t exw Raigarh.
•  Durgapur based Neo Metaliks has further raised steel grade pig iron prices by INR 500/t to INR 28,500/t exw.
• Shri Hari Sponge offered FeM 80 sponge C-DRI (mix material) at INR 20,200/t exw Rourkela.
• BMM Ispat increase offers by INR 1,000/t for FeM 80 P-DRI lumps to INR 19,500/t exw Bellary; an official reported.

Rebar (12 mm)

• Bhagyalaxmi Rolling Mill Pvt. Ltd. (Polaad TMT) sold around 3,000 t rebar at INR 35,000/t and increased their offer by INR 100/t to 35,100/t ( 12-25 mm) exw Jalna.
• Shrishti TMT kept offers unchanged & reported at INR 33,600/t exw Raigarh.
• Odisha based Scan TMT offers reported at INR 33,300/t exw (Up by INR 200-300/t).
• Shubhlabh TMT offers stood at INR 33,500/t exw Rourkela.
• Radhe TMT is offering at INR 33,700/t exw Raigarh.
• Swarup TMT offers at INR 34,200/t exw Muzaffarnagar.
• Diamond TMT kept offers stable at INR 35,600/t FoR Ahmedabad.
• Tirumala TMT is offering at INR 37,000/t exw Chennai.

Wire Rod & Pipe

• APL Apollo Tubes Ltd, has increased pipe prices by INR 2,000/t to INR 41,500/t ($558) exw in Raipur, Chhattisgarh
• ERW Pipe manufacturers have increased offers by INR 100-200/t to INR 35,600/t exw Raipur, INR 38,000/t exw Mandi Gobindgarh & INR 35,700/t exw Rourkela.
• Trade discount in Raipur wire rod is hovering at INR 800-1,000/t and base price firm at INR 34,500/t exw. Also in Durgapur trade reference prices up by INR 500/t to INR 33,300-33,700/t exw.

Reference prices as on 11th Aug’20