Daily Update: Indian Sponge & Billet Market
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Indian Semis prices increased further on active demand from local mills. On day trade activities Billet prices surge by INR 200-800/MT (USD 3-12) and majorly in Jalna by INR 800/MT, Hyderabad & Mumbai by INR 500/MT, while in rest of markets it increased near about INR 200/MT.
In context to Sponge iron the prices were firm in major markets except in South India - Bellary & Hyderabad where it enlarged by INR 500-700/MT over strong inquiries from Central India and local market, as reported by manufacturers.
The industry participants have stated that, inventories with the standalone Sponge iron & Billet manufacturers are limited owing to healthy bookings in last few days.
SteelMint's latest price assessment for induction furnaces billet in Indian market stood at INR 35,600-39,000/MT (USD 507-556) ex-plant.
Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 23,100-25,600/MT (USD 329-365); prices are ex-plant & excluding GST.
Rupee & BSE Sensex
-- On 28th August 2018 (Tuesday) INR to USD exchange rate stood at INR 70.12
-- BSE Sensex closed at 38,896(+202) on Tuesday, as against last day (Monday) at 38,694(+442).
Raw Materials
-- Odisha - India's largest iron ore producing state has witnessed 25% decline in production in July'18 at 6.82 MnT as against 9.14 MnT in June'18
-- Rashtriya Ispat Nigam Limited (RINL) has floated a tender for purchase of 150,000 MT iron ore fines from the indigenous source. The due date for bid submission is 7 Sep'18.
-- Rungta Mines - India's largest private merchant miner produced 1.51 MnT iron ore in July'18, down 27% M-o-M as against 2.08 MnT in June'18.
-- Indian crude steel output went up by 3% M-o-M basis to 9 MnT in Jul'18 which was 8.73 MnT in Jun'18 - WSA.
-- Imported scrap offers to India inched against last week; HMS 1&2 (80:20) Dubai origin containers stood at USD 335/MT, CFR Nhava Sheva
-- South African RB2 (5500 NAR) coal offers are assessed at USD 82/MT on FoB basis & USD 96/MT CNF India. Prices decline by USD 2/MT in a week trade activities.
Semi Finished
-- Raipur, Central India based Integrated plants offering Sponge P-DRI at INR 24,500-24,700/MT & Sponge DR CLO grade at INR 26,500-26,700/MT ex-plant
-- Rashmi Metaliks in Durgapur, known as price trend setter, has offered Sponge P-DRI at INR 23,600-23,700/MT - Sources.
-- Sources reported, few Raigarh based furnace owners have purchased FeM 80 C-DRI (70:30 mix material) from Odisha at around INR 25,000/MT on FoR basis.
-- BMM Ispat in South India (Karnataka) has increased offers for FeM 80 P-DRI by INR 500/MT to INR 22,500/MT ex-Bellary, an official reported.
-- BIOP Steels in South India has offered FeM 80 & 82 C-DRI lumps at INR 23,000/MT & 23,500-23,800/MT ex-plant, Karnataka; an official reported.
-- Karnataka based ILC Iron & Steel has reported latest offers for FeM 80 P-DRI lump at around INR 23,000/MT against last trading at INR 22,500/MT ex-plant
-- Electro Steel has offered Steel grade pig iron at INR 30,000/MT ex-plant & INR 30,500/MT FoR (landed) Durgapur. The merchant pig iron manufacturers in Durgapur being raised offers and are currently assessed at INR 30,500-31,000/MT ex-plant.
Finish Long
-- Jalna based rebar manufacturer - SRJ Peety Steels Pvt Ltd branding Shree Om TMT increased their (28 mm) rebar prices by around INR 1,000/MT to INR 37,800/MT, ex-work & excluding GST.
-- Rathi Steels in North region increased their prices by INR 500/MT on day basis & current offering at INR 43,400/MT, size - 12 mm & excluding 18% GST.
-- Central region, Raipur based brand - SPEED TMT has increased their prices by INR 200/MT on day basis and current offering at INR 37,400/MT (28 mm), ex-work & excluding GST.
-- Raipur Power and Steel Ltd offering Wire Rod (5.5 MM) at INR 41,400/MT, Silico Manganese at INR 66,500/MT & Sponge - PDRI at 24,600/MT, ex-mill & excluding GST.
-- Mumbai, Maharashtra based Guardian TMT has raised rebar prices by INR 600/MT on day basis and current offering 28 mm rebar at INR 36,700/MT, ex-work & excluding GST.
-- East region based - Baba Smelter Pvt. Ltd has increased their Structure offers by INR 500/MT on day basis & current (125,150 Channel) offering at INR 41,750/MT, ex-work, excluding GST.
-- Shakti Ferro Alloys in Chennai, South region has increased their Rebar to INR 41,500/MT (12 mm) and Billet INR 36,500/MT on immediate payment term, ex-work & excluding GST.
-- South India - Chennai based ARS Trusteel increased their prices by INR 400/MT on day basis & current offering Rebar 12 mm at INR 42,700/MT, ex-plant & excluding GST.
-- Further, Chennai based few plants closure due to pollution affects still lying with same situation and market is rising amid strengthening semi finish prices amid less availability of rebars, as per sources.
-- The suppliers in Raipur increased trade discount on Wire Rod and today's discount at INR 400-700/MT.
Reference prices as on 28th August 2018
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| Scrap | Ex-Mumbai | HMS(80:20) | 25,800 | 25,700 | 25,900 | + 50 | 25,400 | 25,000 |
| Ex-Chennai | HMS(80:20) | 24,300 | 24,200 | 24,500 | + 50 | 23,800 | 22,700 | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 24,800 | 24,700 | 24,900 | 0 | 24,000 | 21,200 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 24,500 | 24,400 | 24,600 | + 100 | 22,500 | 20,600 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 25,600 | 25,400 | 25,600 | + 100 | 24,000 | 21,900 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 23,100 | 23,000 | 23,200 | + 700 | 20,800 | 19,300 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 23,700 | 23,600 | 23,800 | 0 | 22,800 | 19,900 |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 24,600 | 24,500 | 24,700 | 0 | 22,800 | 20,200 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 22,500 | 22,400 | 22,600 | + 500 | 20,100 | 18,500 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 22,700 | 22,500 | 22,800 | + 500 | 20,600 | 19,000 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 38,500 | 38,400 | 38,600 | 0 | 36,200 | 34,000 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 36,500 | 36,400 | 36,600 | + 100 | 34,200 | 31,300 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 34,600 | 34,500 | 34,700 | 0 | 32,500 | 30,000 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 35,400 | 35,300 | 35,500 | 0 | 32,900 | 30,500 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 36,300 | 36,200 | 36,400 | + 600 | 34,000 | 32,000 | |
| Ex-Chennai | 3.5 x 4.5 Inch, IS 2830 | 36,500 | 36,400 | 36,600 | + 200 | 35,200 | 33,600 | |
| Ex-Hyderabad | 3.5 x 4.5 Inch, IS 2830 | 36,700 | 36,600 | 36,800 | + 500 | 34,200 | 33,200 | |
| Billet | Ex-Mandi Gobindgarh | 125x125 mm, IS 2831 | 39,000 | 38,900 | 39,100 | 0 | 36,700 | 34,500 |
| Ex-Durgapur | 125x125 mm, IS 2831 | 37,000 | 36,900 | 37,100 | + 100 | 34,800 | 32,000 | |
| Ex-Rourkela | 125x125 mm, IS 2831 | 35,600 | 35,500 | 35,700 | + 100 | 33,400 | 30,750 | |
| Ex-Raipur | 125x125 mm, IS 2831 | 36,300 | 36,200 | 36,400 | - 100 | 33,600 | 31,200 | |
| Ex-Mumbai | 125x125 mm, IS 2831 | 36,550 | 36,500 | 36,600 | + 550 | 34,250 | 32,350 | |
| Ex-Chennai | 125x125 mm, IS 2831 | 37,000 | 36,900 | 37,100 | + 200 | 35,700 | 34,100 | |
| Ex-Hyderabad | 125x125 mm, IS 2831 | 37,000 | 36,900 | 37,000 | + 500 | 34,500 | 33,500 | |
| TMT | Ex-Delhi/NCR | 12-25 MM, IS 1786- 500 Fe | 41,700 | 41,600 | 41,900 | + 500 | 39,400 | 36,700 |
| Ex-Durgapur | 12-25 MM, IS 1786- 500 Fe | 40,800 | 40,600 | 41,000 | + 300 | 38,200 | 35,600 | |
| Ex-Raipur | 12-25 MM, IS 1786- 500 Fe | 39,400 | 39,300 | 39,600 | + 400 | 37,300 | 34,400 | |
| Ex-Mumbai | 12-25 MM, IS 1786- 500 Fe | 39,900 | 39,500 | 40,000 | + 600 | 38,100 | 36,000 | |
| Ex-Chennai | 12-25 MM, IS 1786- 500 Fe | 41,000 | 40,800 | 41,200 | + 400 | 39,900 | 38,700 | |
| Ex-Hyderabad | 12-25 MM, IS 1786- 500 Fe | 40,500 | 40,300 | 40,700 | + 500 | 38,000 | 37,500 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
