Indian DRI, billet & rebar update- 28th Oct

Spot steel prices in secondary market continued to increase & surged by INR 50-700/t today. Billet prices moved up by INR 50-600/t & sponge iron prices by INR 100-300/t. Also, rebar prices rallied by INR 100-700/t with sharp hike of INR 700/t in southern region (Bangalore).

Trades remained slow today in the central India, however participants believe that prices will remain supported due to high cost of raw materials i.e. sponge iron, pig iron & scrap along with sufficient orders with producers.

Raw Material

• BMM Ispat sold around 10,000 t pellets in nearby market at INR 8,900/t exw.
• Monnet Ispat offered 60-14 silico manganese at INR 58,250/t exw Raipur- Officials.

Semi Finished

• Indian sponge iron (80 FeM, 100% lumps) export offers stood at $315/t CPT Benapole, equivalent to $325-330/t CFR Chittagong, Bangladesh. As per sources, no fresh deals & the prices rose due to rally Indian domestic offers.
• Induction grade billet export offers hovering at $420/t exw Durgapur, equivalent to $445/t CPT Nepal. However, about 1,000 t bookings reported yesterday at around $415/t exw Durgapur, through the Nepal based sources.
• Raipur based sponge P-DRI producers have further raised offers by INR 100-200/t to INR 21,800-22,000/t exw, however no major deals reported due to competitive offers by resellers at near to INR 21,600-21,700/t exw along with healthy bookings in the last couple of days.
• Ind Synergy (Raigarh) offered P-DRI at INR 20,900/t & billet at INR 31,000/t exw.
• Raigarh based BS Sponge offered C-DRI at INR 22,200/t exw (Up by INR 200/t).
• Neo Metaliks has kept steel grade pig iron offer firm at INR 29,500/t exw Durgapur.
• Visa Steels kept offers unchanged for steel grade pig iron at INR 28,000/t exw Jajpur.
• Bhaskar Steel and Ferro Alloy Ltd. has offered FeM 80 C-DRI lumps at INR 21,700/t & billet at INR 30,700/t exw Badtumkela.
• Chandrapur (Maharashtra) based manufacturers offered sponge P-DRI (FeM 80) at around INR 21,800/t exw.
• Hare Krishna has offered FeM 79-80 P-DRI at INR 21,000/t exw Bellary (Up by INR 400/t).
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 20,800/t exw Bellary.
• BMM Ispat increased offers by INR 300/t for FeM 80 P-DRI lumps to INR 20,900/t exw Bellary & around 1,500 t deals reported in nearby region.

Rebar (12 mm)

• GK TMT is offering at INR 36,500/t exw Raipur (Up by INR 400/t).
• Shrishtii TMT offers reported at INR 34,200/t exw Raigarh (Down by INR 100/t).
• Diamond TMT kept offers stable at INR 38,700/t FoR Ahmedabad.
• Sangam TMT offers reported at INR 35,500/t exw Wardha.
• Kalika TMT is offering at INR 35,900/t exw Jalna (Up by INR 200/t).
• Odisha based Scan TMT offers reported at INR 34,000/t exw.
• ARS 550 D unchanged offers at INR 38,300/t exw Chennai.
• Tirumala (Fe 550) offers rebar at INR 37,500/t exw Chennai.

Wire Rod & Structure

• Mid scale mills wire rod export offers stood at $470-472/t exw Durgapur, equivalent to $495-500/t CPT Nepal, via road delivery.
• Trade discounts in Raipur wire rod up by INR 200/t to INR 1,000-1,200/t, also base offers increased by INR 400/t to INR 35,500/t exw. Durgapur based plants have increased offers by INR 200/t to INR 34,700-35,000/t exw.
• Raipur based heavy structure manufacturers, increase the base price by INR 300/t and maintained trade discount at INR 800-1,100/t, current trade price of 200 Angle is at INR 38,000-38,400/t exw.

Reference prices as on 28th Oct’20