Indian DRI, billet & rebar update- 9th Sep

Indian steel market has seen a downward trend today. As per SteelMint’s daily assessment, semi finished prices (including sponge, pig iron & billet) dropped by INR 50-500/t across major markets, following which the rebar prices have also come down by INR 100-500/t.

Inquiries among mid scale mills remained limited, however limited margins (conversion spread) indicated no major fall in prices in the near term.

Raw Material

• BMM Ispat sold around 10,000 t pellets in nearby market at INR 7,700/t exw Bellary.
• Silicon Manganese (60-14) offers in Raipur is hovering at INR 61,500-62,000/t exw through the manufacturers, however by traders it was offering at INR 61,000-61,250/t exw.

Semi Finished

• Induction grade billet export offers dropped by $5/t to around $410-412/t exw Durgapur, equivalent to $435-437/t CPT Nepal, via road delivery.
• Raipur based major sponge manufacturers have reduced P-DRI offers by INR 200/t to INR 20,000-20,100/t, however few buying inquiries learned at INR 19,800-19,900/t exw.
• Ind Synergy (Raigarh) offered P-DRI at INR 19,400/t & billet at INR 29,700/t exw.
• Chandrapur (Maharashtra) based manufacturers offered sponge P-DRI (FeM 80) at around INR 20,000/t exw.
• Jharkhand Ispat, one of the major sponge manufacturers has kept P-DRI offers firm at INR 20,800/t exw Giridih.
• Neo Metaliks has kept steel grade pig iron price firm at INR 29,000/t exw Durgapur.
• Visa Steels offering steel grade pig iron at INR 28,000/t exw Jajpur. However no deals reported from officials.
• BMM Ispat has kept offers unaltered for FeM 80 P-DRI lumps at INR 19,200-19,300/t exw Bellary & around 1,000 t deals reported in nearby region.

Rebar (12 mm)

• GK TMT offers stable at INR 35,300/t exw Raipur.
• Shrishtii TMT offers reported at INR 33,200/t exw Raigarh (Down by INR 400/t).
• Rathi Stelmax TMT is offering at INR 36,100/t exw Delhi/NCR (Down by INR 300/t).
• Swarup TMT offers repoted at INR 34,500/t exw Muzaffarnagar (Down by INR 200/t).
• Diamond TMT has unchanged offers at INR 36,200/t FoR Ahmedabad.
• Rajuri TMT kept offers stable at INR 34,800/t exw Jalna.

Wire Rod, Pipe & Structure

• Mid scale mills wire rod export offers dropped by $5/t due to fall in domestic prices and current offers stood at $450-452/t exw Durgapur, equivalent to $475-478/t CPT Nepal.
• Trade discount in Raipur wire rod increased by INR 300-400/t to around INR 1,300-1,400/t, however base price remained firm at INR 34,300/t exw. Also, in Durgapur trade reference prices declined by INR 400/t to INR 33,100-33,500/t exw.
• ERW Pipe manufacturers have kept offers at firm level to INR 35,200-35,300/t exw Raipur, INR 38,200/t exw Mandi Gobindgarh & INR 35,500/t exw Rourkela.
• Hari Om Pipe Industries Ltd has offered ERW pipe at INR 40,500/t exw Hyderabad (Up by INR 200/t).
• Trade discount by Raipur based heavy structure manufacturers is at INR 800-1,100/t and trade price of 200 Angle is at INR 36,800-37,200/t exw.

Reference prices as on 9th Sep’20