Indian DRI, billet & rebar update-12th Nov

Indian secondary steel market has recorded a sharp hike in prices of INR 200-1,200/t today due to improved demand & hike in raw material prices on tighter availability.

As per daily assessment, sponge iron prices moved up by INR 400-800/t & billet prices gained by INR 400-1,200/t in many locations. Also, rebar prices have increased by INR 200-1,000/t in majority of the markets.

Participants are hopeful for further support in prices with sufficient orders in hand & prevailing positive global trends.

Raw Material

• BMM Ispat sold around 10,000 t pellets in nearby market at INR 10,000/t exw Bellary.

Semi Finished

• Indian sponge iron export offers further increased by $5-10/t to $335-340/t CPT Benapole, equivalent to $350-355/t CFR Chittagong, Bangladesh on account of rally domestic prices.
• Induction grade billet export offers increased by $10-15/t to $450/t exw Durgapur, equivalent to $475/t CPT Nepal, via road delivery.
• Raipur based sponge producers have raised P-DRI offers by INR 500-700/t to INR 23,400-23,500/t & sufficient deals reported by majority of plants.
• Ind Synergy (Raigarh) offered P-DRI at INR 22,600/t & billet at INR 33,100/t exw.
• Visa Steels offered FeM 80 sponge C-DRI (mix material) at INR 23,100/t exw Jajpur.
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 22,800/t exw Bellary (Up by INR 500/t).
• BMM Ispat increased offers by INR 400-500/t for FeM 80 P-DRI lumps to INR 22,600-22,700/t exw Bellary & around 3,500 t deals reported in nearby region.

Rebar (12 mm)

• GK TMT is offering at INR 38,000/t exw Raipur (up by INR 1,000/t).
• Shrishtii TMT offers reported at INR 36,200/t exw Raigarh (Up by INR 1,000/t).
• Kalika TMT is offering at INR 38,700/t exw Jalna (Up by INR 600/t).
• Sangam TMT offers reported at INR 36,500/t exw Wardha.
• Akshat TMT is offering at INR 39,700/t FoR Ahmedabad.
• ARS 550 D offers reported at INR 40,500/t exw Chennai.
• Bajrangbali Re-rollers is offering rebar at INR 36,000/t exw Rourkela (Up by INR 500/t).

Wire Rod & Structure

• Mid scale mills wire rod export offers up by $10-15/t to $500/t exw Durgapur, equivalent to $525/t CPT Nepal.
• Trade discounts in Raipur wire rod stable at INR 400-600/t, however base offers up by INR 500/t to INR 37,000/t exw. Also, offers in Durgapur gain by INR 800-1,000/t to INR 37,400-37,800/t exw.
• Raipur based heavy structure manufacturers, increase base price by INR 600/t and maintained trade discount by around INR 500-700/t, current trade reference price of 200 Angle assessed at INR 39,400-39,700/t exw.

Reference prices as on 12th Nov’20