Daily Update: Indian Sponge & Billet Market
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Indian Semis market today reported price fall, sponge by INR 200/MT & Billet by INR 100-400/MT. However, by evening of the day the trade activities were improved in most of the major markets and prices gradually rise.
SteelMint's price assessments for induction furnaces billet size 125x125 mm are reported at INR 31,800-35,000/MT (USD 497-547) ex-plant.
Further the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 21,300-22,400/MT (USD 333-350); prices are ex-plant & excluding GST.
Today (Wednesday, January 17, 2018) INR to USD exchange rate stood at INR 63.92 & BSE Sensex closed at 35,081 (+310).
Key Market Updates:
1. Essar Steel's crude steel production has increased by 15% from 5.15 MnT in CY16 to 5.95 MnT in CY17.
2. Central India based Integrated plants have reduced Sponge P-DRI offers by INR 100-200/MT to INR 21,000-21,200/MT. Sponge DR-CLO grade offers also lowered by INR 100/MT to INR 23,200-23,400/MT. Both prices are ex-plant & excluding GST.
3. Rashmi Metaliks in Durgapur, East India has offered Sponge P-DRI at INR 21,300/MT, according to sources.
4. Bhushan Power & Steel has offers Sponge P-DRI at INR 20,200/MT & steel grade Pig iron at INR 27,500/MT ex-Jharsugda, according to the officials.
5. Odisha based manufacturer, Ganesh Metaliks has offered 100*100 billet for domestic buyers at INR 31,800/MT & for Nepal exports at USD 500/MT (INR 32,000). The both prices are ex-mill & excluding 18% GST.
6. BIOP Steels in South India has offered FeM 80 & 82 C-DRI lumps at INR 22,300/MT & INR 22,800/MT ex-plant, Karnataka. According to officials, trade activities are moderate at these offers.
7. South India, Hyderabad based Cauvery Iron & Steel offers FeM 80 P-DRI at INR 21,000/MT & billet at INR 35,000/MT. Also offering 28 MM Rebar at INR 36,000/MT. prices are ex-plant & excluding GST.
8. Raipur Ingot sold to Hyderabad in good quantity, the trade participants reported. The deal price assessed at INR 31,800-31,900/MT (ex-plant) and freight cost via road at INR 2,200-2,300/MT.
9. Tata Metaliks, a major foundry grade pig iron producer has further increased its prices by INR 300/MT. The latest offers are heard at INR 30,500/MT ex-Kharagpur, East India. Prior to this, during Jan'18 the company has raised prices twice by INR 600/MT.
10. Graphite electrode exports from India increases by around 50% during Jan-Oct'17, to 64,000 MT from 43'000 MT during same period in 2016.
11. Jalna, Maharashtra based billet manufacturers reported shortage of sponge iron and domestic scrap. They added, local scrap prices to remain supported as local suppliers are unable to fulfill the Inductions requirement. Offers for HMS (80:20) scrap are assessed at INR 24,500-24,700/MT and Sponge iron (FeM 80) landed cost from Raipur, Rourkela & Bellary to Jalna at INR 23,500-24,000/MT, excluding 18% GST.
12. Raipur based mills today reduced prices for structure by INR 300/MT, Wire rod by INR 500/MT & Rebars by INR 200-300/MT owing to slowdown inquiries.
Reference prices as on 17th January 2018
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 22,400 | 22,300 | 22,500 | - 100 | 21,700 | 20,000 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 21,300 | 21,200 | 21,400 | - 200 | 21,000 | 19,400 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 22,300 | 22,200 | 22,400 | - 100 | 21,400 | 20,600 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 21,800 | 21,700 | 22,000 | - 200 | 20,800 | 19,000 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 21,300 | 21,200 | 21,400 | - 200 | 20,700 | 19,000 |
| Ex-Jharsugda | Lumps, FeM 78%, +/-1 | 20,200 | 20,200 | 20,300 | NA | NA | 18,500 | |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 21,100 | 21,000 | 21,200 | - 150 | 20,200 | 19,650 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 20,800 | 20,700 | 21,000 | - 200 | 20,000 | 18,400 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 21,200 | 21,000 | 21,400 | - 200 | 20,200 | 19,000 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 33,900 | 33,800 | 34,000 | - 100 | 33,100 | 31,550 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 32,100 | 32,000 | 32,200 | - 200 | 31,300 | 29,600 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 31,200 | 31,200 | 31,300 | - 500 | 30,400 | 28,200 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 32,000 | 31,900 | 32,100 | - 400 | 30,900 | 29,500 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 34,800 | 34,700 | 34,900 | - 100 | 33,800 | 32,000 | |
| Ex-Chennai | 3.5 x 4.5 Inch, IS 2830 | 34,000 | 33,800 | 34,000 | 0 | 34,250 | 31,300 | |
| Ex-Hyderabad | 3.5 x 4.5 Inch, IS 2830 | 35,000 | 35,000 | 35,500 | - 1,000 | 34,000 | 32,000 | |
| Billet | Ex-Mandi Gobindgarh | 125x125 mm, IS 2831 | 34,800 | 34,700 | 34,900 | 0 | 33,900 | 32,100 |
| Ex-Durgapur | 125x125 mm, IS 2831 | 32,500 | 32,300 | 32,500 | - 200 | 31,700 | 29,900 | |
| Ex-Rourkela | 125x125 mm, IS 2831 | 31,800 | 31,700 | 31,800 | - 400 | 31,200 | 29,000 | |
| Ex-Raipur | 125x125 mm, IS 2831 | 33,000 | 32,800 | 33,000 | - 400 | 31,800 | 30,400 | |
| Ex-Mumbai | 125x125 mm, IS 2831 | 35,000 | 34,900 | 35,000 | - 100 | 34,000 | 32,200 | |
| Ex-Chennai | 125x125 mm, IS 2831 | 34,500 | 34,250 | 34,500 | 0 | 34,750 | 31,800 | |
| Ex-Hyderabad | 125x125 mm, IS 2831 | 35,000 | 35,000 | 35,500 | - 1,000 | 34,000 | 32,000 | |
| TMT | Ex-Delhi/NCR | 12MM | 38,800 | 38,600 | 39,000 | 0 | 38,200 | 35,600 |
| Ex-Durgapur | 12MM | 36,400 | 36,200 | 36,600 | - 300 | 35,500 | 32,600 | |
| Ex-Raipur | 12MM | 36,800 | 36,600 | 37,000 | - 400 | 35,600 | 33,200 | |
| Ex-Mumbai | 12MM | 39,300 | 38,900 | 39,400 | 0 | 38,700 | 35,500 | |
| Ex-Chennai | 12MM | 38,500 | 38,300 | 38,700 | 0 | 38,600 | 35,000 | |
| Ex-Hyderabad | 12MM | 38,200 | 38,000 | 38,400 | - 1,000 | 37,200 | 35,000 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
