Steel prices fell further due to limited spot trades and as per daily assessment rebar prices fell by INR 100-500/t, billet by INR 100-600/t, while sponge iron by about INR 100-200/t.
The major price corrections were noticed in Mumbai & Rourkela by INR 500-600/t & INR 400/t, respectively. Market sources in Mumbai reported dull demand due to rising cases of Covid-19. Meanwhile in Rourkela limited bookings from outside buyers led to fall in price range.
Sources expect that rising inventories & lower demand may continue to keep prices under pressure.
SteelMint’s price assessment for induction furnaces billet in Indian market stood at INR 27,300-30,700/t ($ 372-416) EXW.
Further, the coal-based sponge (78-80 FeM) C-DRI price assessment was at INR 15,700-16,500/t ($ 207-217); prices are EXW & excluding GST.
Rupee & BSE Sensex
— On 16th June 2020 (Tuesday) INR to USD exchange rate stood at INR 76.12.
— ICEX (Indian Commodity Exchange Ltd) Jul’20 contract for STEELLONG today open at INR 30,500/t & last traded (IST 17:30 hrs) at INR 30,430/MT.
— BSE Sensex closed at 33,605(+376) on Tuesday, as against last day (Monday) at 33,228(-552).
— NSE Nifty50 index was closed today at 9,914(+100) & Nifty Metal at 1,955(+27).
Raw Material
— A Jamshedpur based pellet maker has reduced pellet offer by INR 300/t to INR 5,500-5,600/t EXW against last week due to low demand, as per sources.
Semi Finished
— Mid scale mills billet export offers hovering at $360/t ex-Durgapur, equivalent to $390/t CPT Nepal, via road delivery. However primary mills billet offers stood at around $400/t CPT Nepal, via rake delivery.
— SAIL has floated a billet export tender of 20,000 t (150*150 mm) from IISCO Steel Plant and 16,200 t (105*105 mm) from Bhilai Steel Plant. The due date for IISCO plant tender is 18 Jun’20 while for Bhilai plant is 19 Jun’20.
— Neo Metaliks in Durgapur has reduced pig iron price to INR 24,300/t ex-plant, however no major inquiries as per officials.
— Foundry grade pig iron prices in northern India drop further due to improved availability and low demand. Fresh offers stood at INR 29,200-300/t FoR Ludhiana & INR 29,500-600/t ex-Delhi.
— Rashmi Metaliks has offered sponge P-DRI at INR 15,700/t FoR Durgapur, as per sources.
— The major sponge producers in Raipur have kept P-DRI offers firm at INR 15,100-300/t, meanwhile few buying inquiries reported at near to INR 15,000/t ex-plant.
— Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 16,200/t & Billet at INR 27,100/t EXW.
— BIOP Steels in South India has decreased sponge prices by INR 100/t, offering FeM 80 & 82 C-DRI lumps at INR 15,900/t & INR 16,200/MT ex-plant, Karnataka.
— BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 15,200/t ex-Bellary.
Rebar (12 mm)
— Swarup TMT offering at INR 34,400/t EXW (Muzaffarnagar).
— GK TMT offers at INR 35,000/t EXW (Raipur).
— Scan Group branding (Shrishti TMT) is offering at INR 33,000/t EXW (Raigarh).
— Bajrangbali Steel Industries Pvt Ltd in Rourkela is offering Rebar at INR 32,800/t EXW.
— Kalika TMT offers at INR 33,700/t EXW (Jalna).
— Vinayak TMT Bars is offering at INR 35,400/t FoR. (Ahmedabad).
— Triple Power offers at INR 36,500/t EXW (Chennai).
— Tirumala TMT is offering at INR 37,000/t EXW (Chennai).
— Trade discount by Raipur based heavy structure manufacturers is at INR 400-700/t and trade price of 200 Angle is at INR 34,300-34,600/t EXW.
Wire Rod & Pipe
— Trade discounts in Raipur wire rod reported at INR 800-1,000/t through traders, while base price dropped by INR 200/t to INR 31,700/t ex-Raipur & by INR 200/t to INR 32,200-500/t ex-Durgapur.
— Raipur based major secondary wire rod producers have raised price difference for HB wire by INR 200/t to INR 2,800/t.
— ERW Pipe manufacturers have decreased offers by INR 300-500/t to INR 34,800-35,000/t ex-Raipur, INR 37,300/t ex-Mandi Gobindgarh & INR 35,500/t ex-Rourkela.
Reference prices as on 16th Jun’20
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| Scrap | Ex-Alang | HMS(80:20) | 20,900 | 20,800 | 21,000 | – 100 | 22,500 | 22,600 |
| Ex-Mumbai | HMS(80:20) | 20,600 | 20,500 | 20,700 | – 100 | 21,200 | NA | |
| Ex-Chennai | HMS(80:20) | 21,000 | 20,800 | 21,200 | 0 | 21,200 | 21,200 | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 16,500 | 16,500 | 16,600 | 0 | 17,500 | 16,600 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 16,000 | 15,900 | 16,100 | 0 | 16,700 | 15,500 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 16,100 | 16,000 | 16,200 | – 200 | 16,800 | 16,100 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 15,700 | 15,600 | 15,800 | – 100 | 15,900 | 16,200 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 15,500 | 15,500 | 15,600 | 0 | 16,500 | 15,600 |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 15,100 | 15,000 | 15,200 | – 50 | 16,050 | 15,200 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 15,100 | 15,000 | 15,200 | – 200 | 15,500 | 16,300 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 15,900 | 15,800 | 16,000 | – 100 | 16,100 | 16,800 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 30,650 | 30,600 | 30,700 | – 150 | 31,850 | 30,400 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 27,350 | 27,300 | 27,400 | – 50 | 28,600 | 26,300 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 27,000 | 26,900 | 27,100 | – 300 | 28,350 | 26,000 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 27,650 | 27,600 | 27,700 | – 150 | 28,950 | 26,500 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 27,500 | 27,400 | 27,600 | – 500 | 29,000 | NA | |
| Billet | Ex-Mandi Gobindgarh | 100x100mm, IS 2831 | 30,700 | 30,600 | 30,800 | – 200 | 32,000 | 30,500 |
| Ex-Durgapur | 100x100mm, IS 2831 | 27,750 | 27,700 | 27,800 | + 150 | 29,100 | 26,800 | |
| Ex-Rourkela | 100x100mm, IS 2831 | 27,300 | 27,200 | 27,400 | – 400 | 28,800 | 26,500 | |
| Ex-Raipur | 100x100mm, IS 2831 | 28,000 | 27,900 | 28,100 | – 200 | 29,450 | 27,000 | |
| Ex-Ahmedabad | 100x100mm, IS 2831 | 28,400 | 28,300 | 28,500 | – 100 | 29,900 | 29,100 | |
| Ex-Mumbai | 100x100mm, IS 2831 | 27,800 | 27,700 | 27,900 | – 600 | 29,400 | NA | |
| Ex-Chennai | 100x100mm, IS 2831 | 29,500 | 29,500 | 29,700 | – 200 | 30,000 | 30,800 | |
| Ex-Hyderabad | 100x100mm, IS 2831 | 28,500 | 28,400 | 28,600 | 0 | 29,500 | 28,500 | |
| TMT | Ex-Delhi/NCR | 12-25mm, Induction Grade, IS 1786- 500 Fe | 35,500 | 35,200 | 35,600 | – 200 | 36,900 | NA |
| Ex-Durgapur | 12-25mm, Induction Grade, IS 1786- 500 Fe | 32,700 | 32,500 | 32,900 | – 300 | 34,300 | 32,700 | |
| Ex-Rourkela | 12-25mm, Induction Grade, IS 1786- 500 Fe | 32,900 | 32,700 | 33,000 | – 200 | 35,200 | 33,000 | |
| Ex-Raipur | 12-25mm, Induction Grade, IS 1786- 500 Fe | 32,500 | 32,400 | 32,600 | – 100 | 34,800 | 33,900 | |
| Ex-Jalna | 12-25mm, Induction Grade, IS 1786- 500 Fe | 33,700 | 33,500 | 33,800 | – 300 | 35,200 | 35,700 | |
| Ex-Mumbai | 12-25mm, Induction Grade, IS 1786- 500 Fe | 33,000 | 32,800 | 33,000 | – 500 | 34,100 | 34,200 | |
| Ex-Chennai | 12-25mm, Induction Grade, IS 1786- 500 Fe | 35,600 | 35,500 | 35,800 | 0 | 35,800 | 36,500 | |
| Ex-Hyderabad | 12-25mm, Induction Grade, IS 1786- 500 Fe | 33,000 | 32,900 | 33,100 | 0 | 34,000 | 34,500 | |
| Wire Rod | Ex-Durgapur | 5.5 mm, Wire Rod, Induction grade | 32,300 | 32,200 | 32,700 | – 200 | 33,700 | 31,400 |
| Ex-Raipur | 5.5 mm, Wire Rod, Induction grade | 31,200 | 30,900 | 31,700 | – 200 | 33,200 | 30,800 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
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