Indian DRI, billet and re-bar update - 29 Sep

The Indian induction furnace (IF) steel market witnessed positive sentiments on improved demand on 29 Sep'21 and steel prices of the mid-sized mills surged by up to INR 1,600/t ($22), d-o-d.

As per SteelMint assessment, semi-finished (including sponge iron and billet) offers increased by INR 200-1,000/t throughout the country, with a major price hike of INR 800-1,000/t observed in the central and western regions.

Moreover, rebar prices also surged by INR 100-1,600/t across locations following a sharp increase of around INR 1,600 in the Jalna market in Maharashtra.

Participants are expecting coal prices to rise and the primary steel producers may hike prices in the coming month. Thus, sentiments remain strong, leading to active demand despite a sharp surge in offers.

Raw material

• Jharsuguda based pellet maker sold around 11,000 t raw pellets in Raigarh & local region at INR 10,500/t exw in 2 days
  
  

Semi finished

• IF route billet export offers increased by $5/t to around $590/t exw Durgapur, equivalent to $615-620/t CPT Nepal, via road delivery.
  
  
• Steel grade pig iron offers in Durgapur remain strong & stood at INR 43,000-43,500/t exw.
  
  
• Sponge P-DRI (FeM 80%) offers in Raipur rose by INR 400/t & deals reported at around INR 31,000-31,300/t on exw & FoR Raipur basis.
  
  
• Jharsuguda, Odisha based sponge supplier sold around 1,000 t FeM 79 P-DRI at around INR 31,300/t FoR Raipur.
  
  
• BMM Ispat offered FeM 80 P-DRI lumps at INR 30,500/t exw Bellary & around 1,000 t deals reported in nearby region.
  
  

Re-bar (12 mm)

• GK TMT(Fe 500D) is offering at INR 48,500/t exw Raipur(Up by INR 700/t).
  
  
• Shrishtii TMT offers reported at INR 46,400/t exw Raigarh (Up by INR 400/t).
  
  
• Rathi Stelmax TMT offers reported at INR 49,000/t exw Delhi/NCR.
  
  
• Swarup TMT offers reported at INR 47,000/t exw Muzaffarnagar (Up by INR 200/t).
  
  
• Vinayak TMT offers reported at 47,900/t FoR Ahmedabad.
  
  
• Gajkesari TMT is offering at INR 47,200/t exw Jalna(Up by INR 1,200/t).
  
  
• Trishakti TMT is offering at INT 45,500/t exw Durgapur.
  
  
• A One Gold TMT offers reported at INR 52,200/t exw Bellary.
  
  
• ARS TMT(Fe 550D) offers reported at INR 51,600/t exw Chennai.
  
  

Wire rod and structure

• Mid scale mills wire rod export rose to $630-635/t exw Durgapur, equivalent to $660/t CPT Nepal, via road delivery.
  
  
• Trade reference wire rod prices in Raipur increased by INR 1,000/t to INR 47,100-47,300/t exw, due to surge in base offers. Also, prices in Durgapur surged by INR 500/t to INR 46,500-46,700/t exw.
  
  
• Heavy structural steel, base price of 150 mm channel is increased by INR 800/t at INR 49,100/t in Raipur with firm trade discount of around INR 1,000/t. Trade reference price of 200 mm angle is at INR 50,900-51,300/t exw.