Indian steel market update- 7 July'20

Indian billet & rebar prices fluctuated by INR 100-300/MT today due to average trade inquiries. While sufficient orders among sponge producers, led to slight gain in sponge prices by INR 100/t in few locations.

SteelMint's price assessment for induction furnaces billet in Indian market stood at INR 26,400-30,300/t ($352-405) EXW.

Further, the coal-based sponge (78-80 FeM) C-DRI price assessment was at INR 15,300-16,800/t ($204-225); prices are EXW & excluding GST.

Rupee & BSE Sensex

-- On 7th July 2020 (Tuesday) INR to USD exchange rate stood at INR 74.83.

-- BSE Sensex closed at 36,674(+187) on Tuesday, as against last day (Monday) at 36,487(+465).

-- NSE Nifty50 index was closed today at 10,799(+36) & Nifty Metal at 2,022(-35).

Raw Material

-- SAIL had scheduled auction for 100,000t iron ore fines (Fe 62.5%) from its Bolani iron ore mines today i.e 07th Jul'20 & received no participation.

-- NMDC has increased prices in today's Karnataka e-auction by around INR 200/t in both lumps and fines. Revised price of lump (Fe 64%) stands at INR 2,863/t and fines (Fe 64%) is at INR 2,066/t (basic, royalty, and other taxes extra).

-- MOIL has floated tenders for the sale of 9,825t HC ferro-manganese, ferro-manganese slag & manganese ore of dioxide grade through e-auctions. The due date for the auction is 14 Jul'20.

Semi Finished

-- Durgapur based Neo Metaliks has resumed offer for steel grade pig iron at INR 24,500/t EXW.

-- SAIL has floated an auction for around 4,000t steel grade pig iron on 10 Jul'20 from its Bhilai steel plant, Chhattisgarh.

-- Sponge P-DRI offers through the Rashmi Metaliks remained firm at around INR 16,000/t, sources reported.

-- Raipur based sponge manufacturers have slightly reduced P-DRI offers by INR 100/t to INR 15,700-800/t ex-plant & about 10,000t deals reported by few major producers for local & outside market.

-- Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 15,800/t & Billet at INR 26,300/t EXW.

-- BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 14,900-15,000/t ex-Bellary & around 3,000 t deals reported in nearby region.

Rebar (12 mm)

-- Swarup TMT offering at INR 32,200/t EXW Muzaffarnagar.

-- Scan Group (Shrishti TMT) is offering at INR 30,500/t EXW Raigarh.

-- Odisha based Shubhlabh TMT offers reported at INR 30,500/MT EXW.

-- Kalika TMT offers stable at INR 32,000/t EXW Jalna.

-- National TMT is offering at INR 33,000/t FoR Ahmedabad.

-- Triple Power offers at INR 36,000/t EXW Chennai.

-- SSI TMT is offering at INR 36,000/t EXW Chennai.

-- ARS 550 D is current offering at INR 40,200/t EXW Chennai.

-- Trade discount given by Raipur based heavy structure manufacturers is at INR 600-900/t and trade price of 200 Angle is at INR 34,000-34,000/t EXW.

Wire Rod & Pipe

-- Trade discounts in Raipur wire rod assessed at INR 800-1,000/t & base price unchanged at INR 30,800/t ex-Raipur & INR 30,700-31,000/t ex-Durgapur.

-- ERW Pipe Manufacturers have kept offers at firm level to INR 33,300/t ex-Raipur, INR 36,600/t ex-Mandi Gobindgarh & INR 33,500/t ex-Rourkela.

Reference prices as on 7th Jul'20

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