Daily Update: Indian Steel Market 2 Mar'20

Indian billet & rebar prices drop further due to weak demand & strong supply. As per daily assessment, the prices fell by INR 100-500/MT today, with major drop of INR 300-500/MT in western region.

Following the trend, sponge iron prices moved down by INR 100-200/MT, day on day in major markets.

Participants believed that domestic steel demand to remain subdued on account coming festive holidays, which will also impact logistic to inter-states.

Rupee & BSE Sensex

-- On 2nd March 2020 (Monday) INR to USD exchange rate stood at INR 72.82.

-- ICEX (Indian Commodity Exchange Ltd) April'20 contract for STEELLONG today open at INR 31,720/MT & last traded (IST 19:10 hrs) at INR 31,450/MT.

-- BSE Sensex closed at 38,144(-153) on Monday, as against last day (Friday) 38,297(-1,448).

-- NSE Nifty50 index was closed today at 11,133(-69) & Nifty Metal at 2,198(-48).

Semi finished

-- Vizag Steel, one of the largest finished long steel producer in south India has resumed operations in their blast furnace which was closed since Sep'19. Currently the company is producing around 15,000-16,000 MT hot metal per day, as per sources.

-- Silicon Manganese trades learned at around INR 61,000-61,500/MT ex-works, Raipur,

-- Medium scale mills export offers to Nepal drop sharply by USD 10/MT W-o-W and assessed at around USD 390/MT for Billet (100*100 mm) & USD 440/MT for Wire rod, ex-mill at Durgapur.

-- Rashmi Metaliks in Durgapur has reduced sponge P-DRI offers by INR 100/MT to INR 18,500-18,600/MT, as per sources.

-- Sponge iron demand remains poor in Central region as inquiries remain limited despite reduced prices by INR 100/MT to INR 18,300-18,400/MT for P-DRI, ex-plant & FoR from Odisha/Raigarh.

-- BMM Ispat, a renowned sponge manufacturer has cuts Sponge P-DRI (80 FeM) prices by INR 100/MT to INR 18,000-18,100/MT ex-Bellary.

Rebar (12 mm)

-- Rathi Steels based in North region is offering at INR 36,300/MT (down by INR 200/MT).

-- Muzaffarnagar based Sarvottam Rolling Mills Pvt. Ltd.(Paras TMT) is offering at INR 34,200/MT.

-- Raipur based Real Ispat (GK TMT) is offering at INR 35,600/MT.

-- Raigarh based Anjani Steels Ltd. (Radhe TMT) is offering at INR 33,000/MT (down by INR 400/MT).

-- Jalna based Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) is offering at INR 36,000/MT

-- Chennai based Ponneri Steel Ind. (Triple Power) is offering at INR 35,500/MT.

Wire rod & Pipe

-- Wire rod offers in Raipur declined by INR 200-300/MT to INR 31,900-32,000/MT by traders & INR 32,200-32,400/MT through the manufacturers, ex-works. Also in Durgapur offers down trend and assessed at INR 32,300-32,700/MT ex-plant.

-- ERW Pipe Manufacturers have reduced prices by INR 100/MT to INR 33,800-33,900/MT ex-Raipur & INR 36,700-33,800/MT ex-Mandi Gobindgarh.

Reference prices as on 2nd March 2020

Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research