Indian steel market update- 16 July’20

Spot sponge iron & billet prices fluctuated by INR 100-200/t on limited trades, while rebar prices fell in same proportion in central, east & northern India.

Sources mentioned, due to limited margins (conversion) the producers are trying to keep offers firm, however if demand remains limited they may forced to cut prices

Raw Material

• BMM Ispat located in Bellary, Karnataka sold around 5,000 t pellets in Tamil Nadu at INR 5,700/t EXW.

Semi Finished

• Gujarat based Mono Steel reported, billet export deals of around 5,000 t to two different destinations, out of which 3,000 t to Malaysia at $388/t CnF and 2,000 t to Africa at $415/t CnF, Size – 100 & 130.
• Rashmi Metaliks deal for sponge C-DRI reported by market sources at INR 17,700/t FoR Durgapur.
• Raipur based major sponge producers have reduced P-DRI offers by INR 200/t to INR 16,100-200/t EXW & few deals reported in local market. Also about 500 t deals reported at INR 16,200-300/t on FoR Raipur basis.
• Singhal Steel offered billet at INR 27,200/t ex-Raigarh.
• Aloke Steel Industries (Jharkhand) offered Fem 78-80 C-DRI lumps at INR 17,200/t & Sponge mix material (60:40) at INR 16,800/t EXW.
• BIOP Steels in South India has kept offers unaltered; offering FeM 80 & 82 C-DRI lumps at INR 15,500/t & INR 15,800/t EXW, Karnataka.
• BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 15,300-15,400/t ex-Bellary.

Rebar (12 mm)

• Scan Group (Shrishti TMT) is offering at INR 31,100/t EXW Raigarh.
• Bajrangbali Steel Industries Pvt Ltd is offering rebar at INR 30,700/t EXW Rourkela.
• Odisha based Scan TMT offers reported at INR 30,500/MT EXW.
• Paras TMT is offering at INR 32,500/t EXW Muzaffarnagar.
• GK TMT stable at INR 33,600/t EXW Raipur.
• Rajuri TMT is offering at INR 32,000/t EXW Jalna.
• Diamond TMT unchanged their offer at INR 33,400/t FoR Ahmedabad.
• ARS 550 D keep offer stable at INR 39,000/t EXW Chennai.
• Trade discount by Raipur based heavy structure manufacturers maintained at INR 500-800/t and trade price of 200 Angle is at INR 34,500-34,800/t EXW.

Wire Rod & Pipe

• Trade discounts in Raipur wire rod further up by INR 100-200/t to INR 1,200-1,300/t, however base price remains firm at INR 31,900/t EXW. In Durgapur trade reference price dropped by INR 100-200/t to INR 31,400-31,800/t EXW.
• ERW Pipe manufacturers have decreased offers by INR 300/t to INR 33,700/t ex-Raipur.

Reference prices as on 16th Jul’20

Basic prices in INR/t & excluding GST @ 18%
Source: SteelMint Research