Daily Update: Indian Sponge & Billet Market
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Indian steel prices remain slightly fluctuates by around INR 100-200/MT through the mid size mills on day trade activities.
The participants in south & western India stated, limited trade activities over festive mood, although in central & eastern regions inquiries has been raised as against last day.
As per industry experts, prices to remain volatile or further increase on assumptions of better demand in coming days.
SteelMint's latest price assessment for induction furnaces billet in Indian market stood at INR 30,500-33,800/MT (USD 429-476) ex-plant.
Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 19,100-20,200/MT (USD 269-285); prices are ex-plant & excluding GST.
Rupee & BSE Sensex
-- On 15th January 2019 (Tuesday) INR to USD exchange rate stood at INR 71.09.
-- ICEX (Indian Commodity Exchange Ltd) Feb'19 contract for STEELLONG today open at INR 33,180/MT & last traded (IST 18:18) at INR 32,980/MT.
-- BSE Sensex closed at 36,318(+464) on Tuesday, as against last day (Monday) at 35,853(-156).
-- NSE Nifty50 index was closed today at 10,886(+149).
Raw Materials
-- NMDC - India's largest iron ore miner; production recorded at 33.14 MnT in CY18, down marginally against 34.03 MnT in CY17.
-- East India based pellet maker - Rashmi Metaliks concluded pellet export deals of 2 vessels containing 55,000 MT pellets each having grade Fe 64% & around 3% alumina at USD 110/MT, CFR China for Feb laycan. Vessel freight from India east coast to China is around USD 9/MT.
-- Durgapur pellet prices have witnessed decline further by INR 100/MT to INR 5,500-5,600/MT this week against last week's assessment of INR 5,600-5,700/MT.
-- According to the latest assessment of Coking coal, spot prices of the Premium HCC are reported at around USD 196.5/MT FoB Australia & USD 208.6/MT CNF India.
-- South African RB2 (5500 NAR) coal offers are assessed at USD 64/MT on FoB basis & USD 78/MT CNF India. Prices incline by USD 2/MT on weekly basis.
Semi Finished
-- Tata Metaliks Limited (TML) recent has declared its quarterly and 9 months results ended on 31st Dec'18, in which the company's pig iron sales reported fall of 27% Q-o-Q & 28% Y-o-Y in Q3 FY19.
-- Raipur, Central India based Integrated plants have rolled over Sponge P-DRI prices to INR 18,600-18,700/MT ex-plant.
-- Rashmi Metaliks in Durgapur, known as price trend setter, has offered Sponge P-DRI at INR 19,100/MT - Sources.
-- Aloke Steel Industries (Jharkhand) offered Fem 78-80 C-DRI lumps at INR 20,000/MT & Sponge mix material (60:40) at INR 19,700/MT ex-plant.
-- Govindam Sponge, an Odisha based plant offered FeM 80 sponge mix material at INR 19,600/MT & fines at INR 19,200/MT ex-plant.
-- Bhaskar Steel and Ferro Alloy Ltd, an Odisha based plant offered FeM 80 C-DRI at INR 19,300-19,400/MT & Billet at INR 30,400-30,500/MT ex-plant. As per officials, trade activities are weak at the offer prices.
-- Sources reported Chandrapur (Maharashtra) based manufacturers offered Sponge C-DRI (FeM 80) at INR 19,700/MT, ex-plant & excluding GST.
Finish Long
-- Raipur based wire rod manufacturers offer unchanged, although trade discount through the manufacturers/suppliers increased by INR 100-300/MT to INR 1,000-1,400/MT. The offers for 5.5 mm wire rod is hovering around INR 38,100/MT ex-Raipur & INR 36,700-36,900/MT ex-Durgapur.
-- Raipur Power and Steel Ltd offering HB Wire (12 Guage) at INR 40,500/MT, Silico Manganese at INR 67,000/MT, Raw Pellet at INR 6,000/MT, P-DRI - at INR 18,500/MT.
-- Mandi Gobindgarh, North India based ERW pipe manufacturers increased prices by INR 200/MT & offers reported at around INR 40,000/MT ex-plant & excluding GST.
-- East region based - Shakambhari Ispat & Power Ltd. offered Wire Rod 5.5 mm at INR 37,000/MT.
-- East region based - Baba Smelter Pvt. Ltd has unchanged their offering - Structure (125,150 Channel) at INR 38,250/MT.
Rebar (12 mm)
-- Rathi Steels based in North region unchanged their offering at around INR 38,500/MT.
-- Raipur based - SPEED TMT unchanged their offering at INR 35,200/MT.
-- Raigarh based Anjani Steels Ltd. (Radhe TMT) unchanged their offering at INR 35,200/MT.
-- Gujarat based Shreeyam Power & Steel Industries Ltd. (National TMT) unchanged their offering at INR 38,600/MT FoR.
-- Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) TMT unchanged their offering at INR 36,500/MT.
Note - The prices mentioned above are ex-work, excluding GST & changes are on day basis.
Reference prices as on 15th January 2019
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| Scrap | Ex-Alang | HMS(80:20) | 25,900 | 25,800 | 26,000 | NA | 25,300 | 27,000 |
| Ex-Mumbai | HMS(80:20) | 25,000 | 24,900 | 25,200 | - 200 | 25,000 | 25,700 | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 20,200 | 20,100 | 20,300 | 0 | 20,000 | 20,900 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 19,400 | 19,300 | 19,500 | + 100 | 19,200 | 20,400 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 20,150 | 20,100 | 20,200 | 0 | 20,000 | 21,700 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 19,100 | 19,000 | 19,200 | 0 | 19,400 | 20,400 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 19,100 | 19,000 | 19,200 | 0 | 18,900 | 19,700 |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 18,650 | 18,600 | 18,700 | 0 | 18,500 | 20,250 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 18,700 | 18,600 | 18,800 | 0 | 18,900 | 19,900 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 33,600 | 33,500 | 33,700 | - 100 | 33,350 | 34,300 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 30,700 | 30,600 | 30,800 | + 100 | 30,200 | 31,200 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 30,000 | 29,900 | 30,000 | + 200 | 29,600 | 30,500 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 30,700 | 30,600 | 30,800 | + 100 | 30,000 | 31,100 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 32,900 | 32,800 | 33,000 | - 100 | 32,400 | 34,000 | |
| Billet | Ex-Mandi Gobindgarh | 100x100 mm, IS 2831 | 33,800 | 33,700 | 33,900 | - 100 | 33,650 | 34,500 |
| Ex-Durgapur | 100x100 mm, IS 2831 | 31,200 | 31,100 | 31,300 | + 100 | 30,600 | 31,600 | |
| Ex-Rourkela | 100x100 mm, IS 2831 | 30,500 | 30,400 | 30,500 | + 100 | 30,000 | 30,800 | |
| Ex-Raipur | 100x100 mm, IS 2831 | 31,400 | 31,300 | 31,500 | + 100 | 30,800 | 32,000 | |
| Ex-Ahmedabad | 100x100 mm, IS 2831 | 33,500 | 33,400 | 33,600 | - 100 | 32,900 | 34,100 | |
| Ex-Mumbai | 100x100 mm, IS 2831 | 33,100 | 33,000 | 33,200 | - 100 | 32,600 | 34,200 | |
| TMT | Ex-Delhi/NCR | 12-25 MM, IS 1786- 500 Fe | 37,200 | 37,100 | 37,400 | 0 | 36,700 | 37,900 |
| Ex-Durgapur | 12-25 MM, IS 1786- 500 Fe | 35,800 | 35,600 | 36,000 | - 200 | 35,500 | 36,500 | |
| Ex-Raipur | 12-25 MM, IS 1786- 500 Fe | 35,000 | 34,900 | 35,100 | 0 | 34,600 | 35,900 | |
| Ex-Mumbai | 12-25 MM, IS 1786- 500 Fe | 36,400 | 36,100 | 36,600 | - 300 | 35,900 | 37,200 | |
| Wire Rod | Ex-Durgapur | Wire Rod(5.5 MM) | 36,800 | 36,600 | 37,000 | 0 | 36,500 | 37,700 |
| Ex-Raipur | Wire Rod(5.5 MM) | 38,100 | 37,100 | 38,100 | 0 | 37,900 | 38,800 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
