Indian DRI, billet and re-bar update - 31 Aug

Indian induction furnace (IF) route steel market sentiments recovered on 31 Aug'21 as prices rose by up to INR 350/t ($5), d-o-d.

As per SteelMint assessment, sponge iron markets in the country witnessed a hike in prices by around INR 50-250/t except Hyderabad where a slight correction of INR 100/t was observed.

Also, domestic billet offers moved up by INR 200-350/t in many regions following a major hike of INR 350/t seen in Mandi Gobindgarh and Rourkela.

Moreover, the IF route re-bar market witnessed volatility in prices by INR 100-400/t across the country.

With overall lack of participation in OMC's iron ore auctions today, sources are hopeful that domestic raw material prices will remain under pressure and will ultimately bring down steel prices in the coming days.

Semi finished

• Indian IF route billet export offers rose due to strengthening rupee against US dollar along with slight rise in domestic offers. The fresh offers floated at $568-570/t exw Durgapur, equivalent to $595-600/t CPT Nepal.
  
  
• Neo Metaliks in Durgapur has kept steel grade pig iron offers firm at INR 38,300/t exw.
  
  
• Sponge P-DRI offers in Raipur up by INR 100/t to INR 29,700-29,800/t & deals reported at INR 29,300-29,600/t on exw & FoR Raipur basis.
  
  
• Jharkhand based manufacturer concluded 700 t billet deals at INR 42,000/t exw Ramgarh.
  
  
• Jharsuguda, Odisha based sponge supplier offered FeM 79 P-DRI at around INR 29,700/t FoR Raipur.
  
  
• Mahavir Ferro Alloys sold around 500 t FeM 80 C-DRI mix material at INR 31,000/t exw Rourkela.
  
  
• BMM Ispat offered FeM 80 P-DRI lumps at INR 28,200/t exw Bellary & around 2,500 t deals reported in nearby region.
  
  
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 30,000/t exw Bellary (Up by INR 200/t).
  
  

Re-bar (12 mm)

• GK TMT(Fe 500D) is offering at INR 47,100/t exw Raipur (Up by INR 300/t).
  
  
• Shrishtii TMT offers reported at INR 44,700/t exw Raigarh.
  
  
• Rathi Stelmax TMT is offering at INR 47,800/t exw Delhi/NCR (Up by INR 300/t).
  
  
• Mono TMT offers stable at INR 49,800/t FoR Ahmedabad.
  
  
• Polaad TMT offers stable at INR 48,500/t exw Jalna.
  
  
• Chaliama (Jharkhand) based Rungta TMT offers reported at INR 43,850/t exw.
  
  
• BMM Ispat is offering Fe 500 rebar at INR 44,600/t exw Bellary (Down by INR 1,000/t).
  
  

Wire rod and structure

• Mid scale mills wire rod export offer increases by $5/t to $605-610/t exw Durgapur, equivalent to $635/t CPT Nepal, via road delivery.
  
  
• Trade reference wire rod prices in Raipur rose by INR 500/t to INR 44,500-44,700/t exw due to fall in trade discounts & increase in base offers. However, prices in Durgapur unchanged at INR 44,000-44,200/t exw-Durgapur.
  
  
• Heavy structural steel, base price of 150 mm channel stable at INR 46,500/t in Raipur with firm trade discount of INR 700-1,000/t. Trade reference price of 200 mm angle is at INR 48,200-48,600/t exw.