Indian DRI, billet and re-bar update - 1 Dec

Bearish sentiments prevailed in the Indian induction furnace (IF) steel market due to poor demand on 1 Dec'21. Prices of semi-finished steel products of the mid-sized mills dropped by up to INR 1,000/tonne (t) ($13/t), d-o-d.

Indian semi-finished steel (including sponge iron and billet) offers declined by INR 200-1,000/t, with a major fall of INR 1,000/t seen in Hyderabad's billet market.

Moreover, re-bar (Fe 500) prices decreased by INR 100-500/t across regions, whereas a slight hike of INR 200-300/t in offers was observed in Punjab and Mumbai.

Sources are expecting prices to soften further, especially in the central and eastern regions due to the decline in prices of iron ore lumps, pellets, and coal. As a result, all the major buyers are waiting before taking positions.

Raw material

• Karnataka based BMM Ispat offered raw pellets at INR 10,000/t exw Bellary.
  
  
• Maharashtra based sponge manufacturers getting RB2 coal offers at INR 9,000/t from Gangavaram port.
  
  

Semi finished

• Induction grade billet export offers drop to around $555/t exw Durgapur, equivalent to $580/t CPT Nepal.
  
  
• Raipur sponge P-DRI offers reported at INR 28,300-28,400/t, however deals reported at around INR 28,100-28,200/t on exw & DAP basis.
  
  
• Neo Metaliks in Durgapur has reduced steel grade pig iron offers by INR 500/t to INR 38,200/t exw.
  
  
• Raigarh based steel manufacturers getting pig iron offers from Odisha at INR 37,700/t FoR Raigarh.
  
  
• An export deal for 1,250 t, FeM 80-82 sponge C-DRI (lumps 100%) reported to Nepal at around INR 32,500/t ($434), loaded to rake, from Odisha.
  
  
• Jharkhand based sponge maker sold around 500 t of P-DRI at INR 28,200-28,300/t exw Ramgarh.
  
  
• Durgapur located mill colcluded 600 t sponge P-DRI at 29,000-29,200/t on DAP basis.
  
  
• BMM Ispat offered FeM 80 P-DRI lumps at INR 28,500/t exw Bellary.
  
  

Wire rod and structure

• West Bengal based manufactures, recently concluded around 2,500 t of wire rod export deals to Nepal at around $610/t on exw Durgapur basis, however the fresh offers reduced to around $605/t exw.
  
  
• Raigarh based Singhal Steel concluded around 500 t deals of wire rod at INR 44,800/t exw.
  
  
• In Heavy structural steel, base price of 150 mm channel is stable to INR 50,000/t in Raipur with firm trade discount of INR 1,700-2,000/t. Trade reference price of 200 mm angle is at INR 51,100-51,500/t exw.
  
  

Click here for re-bar brand wise details