Daily Update: Indian Sponge iron Prices Hit 1-Month Low on Demand Concern
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Sponge iron prices in Indian domestic market dipped to 1 month low owing to improved supply, low demand and significant fall in steel prices by mid-sized mills.
On day trade activities, Sponge iron & Billet prices drop by INR 100-500/MT, meanwhile in comparison with beginning of week it plunge close to INR 600-1,200/MT (USD 8-17) in major markets.
The Sponge iron makers in Central & Eastern India stated, prices fall due to poor demand from local EA or Induction furnaces. Meanwhile in Southern region - Bellary few small size sponge producers (100-300 TPD) highlighted that there is less demand from the domestic market as well as from Western region (Maharashtra & Gujarat) owing to declining scrap prices. As per assessment in a week domestic scrap prices plunged by INR 300-700/MT.
SteelMint's latest price assessment for induction furnaces billet in Indian market stood at INR 31,700-35,000/MT (USD 452-500) ex-plant.
Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 19,300-20,400/MT (USD 275-291); prices are ex-plant & excluding GST.
Rupee & BSE Sensex
-- On 6th March 2019 (Thursday) INR to USD exchange rate stood at INR 69.96.
-- ICEX (Indian Commodity Exchange Ltd) Apr'19 contract for STEELLONG today open at INR 34,500/MT & last traded (IST 18:19) at INR 34,320/MT.
-- BSE Sensex closed at 36,725(+89) on Thursday, as against last day (Wednesday) at 36,636(+193).
-- NSE Nifty50 index was closed today at 11,058(+5).
Raw Materials
-- Raipur (central India) based pellet manufacturers have today reduced offers to INR 6,700/MT (ex-Raipur, GST extra) as against last offer of INR 7,200/MT (ex-Raipur, GST extra).
-- China continued to be the largest importer of Indian iron ore in Feb'19 accounting 79% of total exports for the month at 0.26 MnT, down 39% as against 0.42 MnT in Jan'19.
-- According to the latest assessment of Coking coal, spot prices of the Premium HCC are reported at around USD 213.25/MT FoB Australia & USD 225.35/MT CNF India.
-- Paradip Port Trust (PPT) aims to handle 110 MnT of cargo by the close of this financial year.
Semi Finished
-- Neelachal Ispat (NINL) has roll-over steel grade pig iron prices at INR 26,750-27,150/MT ex-plant, Cuttack, Eastern India.
-- Rashmi Metaliks in Durgapur, known as price trend setter, has offered Sponge P-DRI at INR 18,200-18,300/MT - Sources.
-- Raipur, Central India based Integrated plants offers decreased by INR 500-600/MT, offering Sponge P-DRI at INR 18,800-19,000/MT & Sponge DR CLO grade at INR 21,300-21,500/MT ex-plant.
-- Odisha based manufacturer, Ganesh Metaliks offered Billet at INR 31,800/MT ex-plant, an official reported.
-- Hare Krishna, a 300 TPD sponge manufacturer in Bellary, Karnataka has offered FeM 82 P-DRI at INR 20,600/MT ex-plant, an official reported.
-- BIOP Steels in South India has offered FeM 80 & 82 C-DRI lumps at INR 20,300/MT & 20,700/MT ex-plant, Karnataka; an official reported.
-- South India (Telangana) based Cauvery Iron & Steel offers FeM 80 P-DRI & Billet at INR 20,200/MT & INR 34,000/MT. Also offering 12 mm Rebar at INR 37,500/MT. All prices are ex-plant & excluding GST.
Wire Rod & Pipe
-- Raipur, Central India based ERW pipe manufacturers decreased prices by INR 400-500/MT & offers reported at around INR 38,200/MT ex-plant & excluding GST.
-- Raipur based wire rod manufacturers reduced offers by INR 400/MT and trade discount through the manufacturers/suppliers is around INR 1,500-2,000/MT. The offers for 5.5 mm wire rod is hovering at around INR 39,100/MT ex-Raipur & INR 36,800-37,000/MT ex-Durgapur.
-- Mandi Gobindgarh, North India based ERW pipe manufacturers offers reported at around INR 41,400/MT ex-plant & excluding GST.
-- Hyderabad (South India) based manufacturer Mahalakshmi Profiles Pvt. Ltd (MPL) has offered ERW Pipe at INR 40,300/MT ex-plant. (basic & excluding GST).
Rebar (12 mm)
-- Raipur based - SPEED TMT offering at INR 36,500/MT (Down by INR 100/MT).
-- Gujarat based Shreeyam Power & Steel Industries Ltd. (National TMT) offering at INR 39,500/MT FoR (Down by INR 200/MT).
-- Gujarat based, Mono Steel (India) Ltd. (Mono TMT) current offering around INR 39,600/MT FoR (Down by INR 300/MT).
-- Jalna based Kalika Steels Alloys Pvt. Ltd. (Kalika TMT) offering at INR 38,600/MT (Down by INR 300/MT).
-- Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) TMT offering at INR 38,700/MT (Down by INR 500/MT).
-- Chennai based ARS Steel (ARS 500 D) unchanged their offering at INR 41,600/MT.
Note - Prices mentioned above are ex-work, excluding GST & changes are placed on day basis.
Reference prices as on 7th March 2019
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| Scrap | Ex-Alang | HMS(80:20) | 25,600 | 25,500 | 25,700 | - 200 | 26,300 | 26,800 |
| Ex-Mumbai | HMS(80:20) | 25,200 | 25,100 | 25,400 | - 100 | 25,300 | 25,500 | |
| Ex-Chennai | HMS(80:20) | 25,200 | 25,000 | 25,300 | - 100 | 25,300 | 24,700 | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 19,300 | 19,200 | 19,400 | - 400 | 20,000 | 21,500 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 19,800 | 19,700 | 19,900 | - 100 | 20,400 | 20,200 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 20,400 | 20,300 | 2,500 | - 500 | 21,300 | 21,500 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 20,200 | 20,100 | 20,300 | - 100 | 20,300 | 20,100 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 18,100 | 18,000 | 18,200 | - 400 | 18,800 | 20,200 |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 18,900 | 18,800 | 19,000 | - 600 | 20,000 | 20,500 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 19,800 | 19,700 | 19,900 | - 300 | 20,000 | 19,900 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 20,400 | 20,300 | 20,500 | - 300 | 20,500 | 20,300 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 34,650 | 34,600 | 34,700 | - 100 | 35,000 | 34,850 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 31,400 | 31,300 | 31,500 | - 300 | 31,800 | 32,500 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 31,500 | 31,400 | 31,600 | - 200 | 31,700 | 31,700 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 31,900 | 31,800 | 32,000 | - 300 | 32,700 | 32,400 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 34,400 | 34,300 | 34,500 | - 400 | 35,200 | 34,700 | |
| Billet | Ex-Mandi Gobindgarh | 100x100 mm, IS 2831 | 35,000 | 35,000 | 35,100 | - 300 | 35,400 | 35,250 |
| Ex-Durgapur | 100x100 mm, IS 2831 | 31,900 | 31,800 | 32,000 | - 300 | 32,300 | 33,000 | |
| Ex-Rourkela | 100x100 mm, IS 2831 | 31,800 | 31,700 | 31,900 | - 200 | 32,200 | 32,200 | |
| Ex-Raipur | 100x100 mm, IS 2831 | 32,200 | 32,100 | 32,300 | - 300 | 33,500 | 33,400 | |
| Ex-Ahmedabad | 100x100 mm, IS 2831 | 34,750 | 34,700 | 34,800 | - 350 | 35,300 | 34,350 | |
| Ex-Mumbai | 100x100 mm, IS 2831 | 34,600 | 34,500 | 34,700 | - 400 | 35,450 | 34,900 | |
| Ex-Chennai | 100x100 mm, IS 2831 | 34,300 | 34,200 | 34,400 | + 100 | 34,150 | 34,000 | |
| Ex-Hyderabad | 100x100 mm, IS 2831 | 34,000 | 33,900 | 34,100 | 0 | 34,500 | 34,000 | |
| TMT | Ex-Delhi/NCR | 12-25 MM, IS 1786- 500 Fe | 37,900 | 37,700 | 38,000 | - 100 | 37,900 | 38,100 |
| Ex-Durgapur | 12-25 MM, IS 1786- 500 Fe | 36,800 | 36,600 | 37,000 | - 300 | 36,800 | 37,300 | |
| Ex-Raipur | 12-25 MM, IS 1786- 500 Fe | 36,500 | 36,300 | 36,600 | - 100 | 36,300 | 36,100 | |
| Ex-Mumbai | 12-25 MM, IS 1786- 500 Fe | 38,000 | 37,800 | 38,300 | - 200 | 38,300 | 38,000 | |
| Ex-Chennai | 12-25 MM, IS 1786- 500 Fe | 38,800 | 38,600 | 39,000 | - 100 | 38,500 | 37,500 | |
| Ex-Hyderabad | 12-25 MM, IS 1786- 500 Fe | 37,500 | 37,300 | 37,700 | 0 | 37,500 | 38,000 | |
| Wire Rod | Ex-Durgapur | Wire Rod(5.5 MM) | 36,900 | 36,700 | 37,200 | - 300 | 37,300 | 37,900 |
| Ex-Raipur | Wire Rod(5.5 MM) | 39,100 | 37,600 | 39,100 | - 400 | 39,700 | 39,500 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
