Daily Update: Indian Steel Market 26 Feb'20

Indian sponge iron & billet prices remained slightly fluctuate by INR 100-200/MT today on account of average demand.

However it is learned that, future bookings are limited among mid scale mills specifically in central & eastern India.

Rupee & BSE Sensex

-- On 26th February 2020 (Wednesday) INR to USD exchange rate stood at INR 71.68.

-- ICEX (Indian Commodity Exchange Ltd) Mar'20 contract for STEELLONG today open at INR 31,740/MT & last traded (IST 18:18 hrs) at INR 31,600/MT.

-- BSE Sensex closed at 39,889 (-392) on Wednesday, as against last day (Tuesday) at 40,281 (-82).

-- NSE Nifty50 index was closed today at 11,678 (-119) & Nifty Metal at 2,430 (-40).

Trade Updates

-- India's crude steel output remain unchanged with 9.29 MnT in Jan '20 against 9.28 MnT in the preceding month. Meanwhile, the output down by 3% Y-o-Y in Jan'20 as against 9.59 MnT in Jan'19.

-- Godawari Power and Ispat (GPIL) from Central India, informed that it has commenced commercial production in the Rolling Mill (4,00,000 MT) and Iron Ore Beneficiation Plant (1,00,000 MT) with effect from 25 Feb'20.

-- India's Vedanta (Sesa Goa) has floated export tender for 25,000 MT pig iron. The company has invited offers which are to be submitted by 26th Feb'20 and shall remain valid till 27th Feb'20.

-- Silicon Manganese offers more or less firm on day trades and assessed at INR 61,500-62,000/MT ex-works, Raipur,

-- Indian Sponge iron export prices to Bangladesh dropped further by USD 5/MT in recent deals of around 5,000 MT. The deal has concluded near to USD 282-283/MT CPT Benapole, equivalent to USD 295-300/MT CFR Chittagong.

-- SAIL's auction for 2,200 MT steel grade pig iron from its Rourkela steel plant, has received weak response. Only about 250 MT material have been sold on reduce base price by INR 300/MT to INR 27,500/MT EXW-Rourkela.

-- Induction grade billet (100*100 mm) export offers remained firm at USD 400-402/MT ex-mill at Durgapur, equivalent to USD 425-428/MT CPT Nepal. Meanwhile large mills export offers of blast furnace grade billet assessed at USD 445-450/MT CPT Nepal.

-- Rashmi Metaliks in Durgapur has raised sponge P-DRI offers by INR 100/MT to INR 18,700/MT, as per sources.

-- Sponge iron demand remains weak in Central region due to power cuts in Raigarh, punjipatra based mills. Limited deals learned in Raipur at offers of INR 18,600-18,700/MT ex-plant & FoR basis from Raigarh for sponge P-DRI.

-- Neo Metaliks in Durgapur has roll-over steel grade Pig iron price to INR 27,500-27,600/MT ex-plant.

-- BMM Ispat, a renowned sponge manufacturer has sold about 6,000 MT Sponge P-DRI (80 FeM) at around INR 18,100-18,200/MT ex-Bellary.

-- BIOP Steels has unchanged their offers & reported FeM 80 & 82 C-DRI lumps at INR 18,400/MT & INR 18,800/MT ex-plant, Karnataka.

-- Wire rod offers in Raipur up by INR 100/MT to INR 32,500-32,600/MT by traders & INR 32,700-32,800/MT through the manufacturers, ex-works. Also in Durgapur offers surge by INR 200/MT to 32,500-33,000/MT ex-plant.

-- ERW Pipe Manufacturers have kept offers at firm level to INR 33,800/MT ex-Raipur, INR 36,700-36,800/MT ex-Mandi Gobindgarh & INR 33,900-34,000/MT ex-Rourkela.

Reference prices as on 26th February 2020

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