Daily Update: Indian Semis Offer Increases

Indian steel prices increase in the week opening on improved local inquiries and as per assessment prices gain by INR 100-300/MT on day trade activities with major rise of INR 300/MT in Southern region.

As per industry participants, spot trade volume still not up to the mark than the expected, hence there is less scope for stability in prices.

SteelMint's latest price assessment for induction furnaces billet in Indian market stood at INR 27,900-32,000/MT (USD 405-464) ex-plant.

Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 16,900-18,300/MT (USD 245-265); prices are ex-plant & excluding GST.

Rupee & BSE Sensex

-- On 1st Jul 2019 (Monday) INR to USD exchange rate stood at INR 68.93

-- ICEX (Indian Commodity Exchange Ltd) Aug'19 contract for STEELLONG today open at INR 30,900/MT & last traded (IST 18:42) at INR 30,930/MT.

-- BSE Sensex closed at 39,686(+291) on Monday, as against last day (Friday) at 39,394(-191).

-- NSE Nifty50 index was closed today at 11,865(+76) & Nifty Metal at 2,977(-2).

Raw Material

-- Essel Mining, a major iron ore mine in Odisha has reduced its offers for iron ore lumps by INR 200/MT (USD 3/MT) w.e.f. 1st Jul'19.

-- Odisha, India's largest iron ore producing state recorded iron ore production at 11.7 MnT in May'19, down by 6% as against 12.45 MnT in Apr'19, as per provisional data of Odisha Govt. maintained by SteelMint.

-- NMDC supplied total of 310 rakes (1.19 MnT) of iron ore in the month of Jun'19, down 23% against 400 rakes (1.54 MnT) a month before in May'19, according to railway movement data maintained with SteelMint.

Semi Finished

-- BMM Ispat, known as price trend setter in South Indian sponge market has raised P-DRI prices by INR 200/MT to around INR 16,500-16,600/MT ex-Bellary.

-- Rashmi Metaliks in Durgapur has increased prices and offers for P-DRI through the market sources learned at INR 17,300/MT.

-- Raipur based sponge plants have raised sponge prices by INR 200-300/MT, however limited deals reported and the assessment stood at around INR 16,600/MT as against 29th Jun at INR 16,400-16,500/MT ex-plant.

-- Neo Metaliks in Durgapur has maintained pig iron prices and reported steel grade material at around INR 26,800-27,000/MT ex-plant.

-- Officials from Electrosteels reported limited inquiries at the offers of steel grade pig iron at INR 26,500/MT ex-Bokaro, Jharkhand.

-- Durgapur based mid sized mills have slightly raised export offers and reported Billet at USD 410/MT & Wire rod at close to USD 475/MT (ex-mill); freight cost to Nepal at USD 25-30/MT CFR Raxaul border, Nepal.

Wire Rod

-- Trade discounts in Raipur Wire rod unchanged at INR 1,000-1,200/MT as base price up by INR 300/MT to INR 35,000/MT ex-plant. Similarly in Durgapur, where trade reference prices gain by INR 100/MT to INR 33,200-33,700/MT ex-plant.

Rebar (12 mm)

-- Raipur based - SPEED TMT unchanged their offers at INR 32,800/MT.

-- Real Ispat (GK TMT) unchanged their offers at INR 35,200/MT.

-- Raigarh based Anjani Steels Ltd. (Radhe TMT) is offering at INR 33,000/MT.

-- Jalna based Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) is offering at INR 33,700/MT (up by INR 200/MT).

-- Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) is offering at INR 33,800/MT. (up by INR 100/MT).

-- Gujarat based Diamond TMT is offering at INR 34,800/MT.

-- Gujarat based Shreeyam Power & Steel Industries Ltd. (National TMT) is offering at INR 34,700/MT FoR.

Note - Prices mentioned above are ex-work, excluding GST & changes are placed on day basis. Prices are subject to reconfirmation.