CG Govt May Continue with Partial Subsidy on Power Tariff - Sources
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The Chhattisgarh state government may approve rebate on power tariff given to steel industry from 1st of Oct'17 & will expire on Mar'18, according to steelmakers based in the state.
As per the assessment it was noticed that, the government may continue with a subsidy of 80 paise per unit on power tariff, which was earlier Rs 1.40 per unit but was valid till 30th Sep 2017 according to the sources, although notifications yet to receive from the Govt.
After the effective power charges in the Raipur, Chhattisgarh Industrial will be approximately INR 5.40-5.50 per unit, which was earlier at INR 6.20-6.30 per unit (at the time of removal of subsidy).
Chattisgarh is one of the largest steel producing state in the country with an annual crude steel capacity of around 8-10 MnT, mostly made through induction furnace route.
Indian Semi-finished offers increased further over positive sentiment in major markets, while in South India, Bellary where sponge prices down by INR 100-200/MT.
SteelMint's price assessments for induction furnaces billet size 125x125 mm are reported at INR 26,500-29,400/MT (USD 410-455) ex-plant, billet offers inched upto INR 600/MT D-o-D
Further the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 16,900-18,500/MT (USD 262-286); prices are ex-plant & excluding GST, offers up by INR 200-300/MT D-o-D
Today (Thursday, November 23, 2017) INR to USD exchange rate stood at INR 64.60 & BSE Sensex closed at 33,588 (+26).
Key Market Updates:
1. A Vessel of 50,000 MT mill scale reported at Kandla Port, likely to be exported to Philippines
2. Raipur, Central India based Integrated plants offers increased by INR 200/MT D-o-D, offering Sponge P-DRI at INR 17,300-17,400/MT ex-plant
3. In West Bengal - Durgapur, big manufacturers have increased sponge offers by INR 200-300/MT D-o-D; P-DRI at INR 17,000/MT & C-DRI at INR 18,000-18,100/MT ex-plant
4. Odisha based medium size sponge manufacturers reported rise offers by INR 300/MT; FeM 80 C-DRI (70:30 mix material) at INR 17,400-17,500/MT ex-plant & excluding GST.
5. BMM Ispat in Karnataka has offered sponge P-DRI at INR 16,800/MT and Sunvik Steels sponge C-DRI lumps at INR 17,600/MT. Both offers for FeM 80, excluding GST & ex-plant basis.
6. Hare Krishna, a 300 TPD sponge manufacturer in Bellary, Karnataka has offered 80 FeM P-DRI at INR 16,300-16,500/MT ex-plant.
7.Rathi Steels, one of the big manufacturer for rebars in North India - Delhi has unchanged offer with INR 34,000/MT, 12 mm & excluding GST @ 18%.
8. Gujarat based Akshar TMT has kept rebar offers unaltered for the day. The fresh offers are reported at INR 38,000/MT FOR & including GST at 18%, Size - 20 mm.
9.Maharashtra - Jalna based Kalika Steel Alloys has increased rebar offers with INR 200/MT to INR 30,700/MT for 12mm.
Reference prices as on 23rd November 2017
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 18,100 | 18,000 | 18,100 | + 300 | 18,000 | 17,200 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 17,500 | 17,400 | 17,500 | + 300 | 17,200 | 16,100 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 18,500 | 18,400 | 18,600 | + 200 | 18,300 | 17,300 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 16,900 | 16,800 | 17,000 | - 200 | 16,900 | 16,800 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 17,300 | 17,200 | 17,400 | - 100 | 17,200 | 17,000 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 17,000 | 16,900 | 17,100 | + 100 | 17,100 | 16,400 |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 17,350 | 17,300 | 17,400 | + 200 | 17,100 | 15,950 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 16,600 | 16,500 | 16,700 | - 100 | 16,600 | 16,600 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 17,300 | 17,200 | 17,400 | - 100 | 17,200 | 17,000 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 30,100 | 30,000 | 30,200 | + 250 | 29,850 | 28,500 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 27,500 | 27,400 | 27,600 | + 200 | 27,400 | 26,150 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 26,100 | 26,000 | 26,200 | + 100 | 26,000 | 25,100 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 26,550 | 26,500 | 26,600 | - 150 | 26,700 | 25,750 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 28,400 | 28,300 | 28,500 | + 600 | 27,750 | 26,750 | |
| Ex-Chennai | 3.5 x 4.5 Inch, IS 2830 | 27,700 | 27,500 | 28,000 | + 200 | 27,000 | 27,000 | |
| Ex-Hyderabad | 3.5 x 4.5 Inch, IS 2830 | 28,000 | 28,000 | 28,000 | 0 | 28,000 | 26,500 | |
| Billet | Ex-Mandi Gobindgarh | 125x125 mm, IS 2831 | 30,550 | 30,500 | 30,600 | + 250 | 30,400 | 29,000 |
| Ex-Durgapur | 125x125 mm, IS 2831 | 27,800 | 27,700 | 27,900 | + 100 | 27,650 | 26,600 | |
| Ex-Rourkela | 125x125 mm, IS 2831 | 26,500 | 26,400 | 26,600 | + 200 | 26,400 | 25,600 | |
| Ex-Raipur | 125x125 mm, IS 2831 | 27,000 | 26,900 | 27,100 | - 100 | 27,250 | 26,300 | |
| Ex-Mumbai | 125x125 mm, IS 2831 | 28,600 | 28,500 | 28,700 | + 600 | 27,950 | 27,000 | |
| Ex-Chennai | 125x125 mm, IS 2831 | 28,200 | 28,100 | 28,300 | + 200 | 27,500 | 27,500 | |
| Ex-Hyderabad | 125x125 mm, IS 2831 | 28,000 | 27,800 | 28,200 | 0 | 28,000 | 26,500 | |
| TMT | Ex-Delhi/NCR | 12MM | 33,300 | 33,100 | 33,500 | 0 | 33,800 | NA |
| Ex-Durgapur | 12MM | 30,600 | 30,500 | 30,800 | 0 | 30,700 | 29,700 | |
| Ex-Raipur | 12MM | 29,800 | 29,600 | 30,000 | + 200 | 30,000 | 29,100 | |
| Ex-Mumbai | 12MM | 31,600 | 31,200 | 31,700 | + 200 | 31,100 | 30,100 | |
| Ex-Chennai | 12MM | 31,700 | 31,500 | 32,000 | + 200 | 31,000 | 31,700 | |
| Ex-Hyderabad | 12MM | 31,000 | 30,800 | 31,100 | 0 | 30,850 | 29,500 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
