Indian DRI, billet and rebar update - 10 Aug

Spot trading activity in the Indian secondary steel market remained dull on 10 Aug'21, as prices declined by up to INR 800/t ($11/t) d-o-d.

As per SteelMint assessment, the Indian semi-finished (including sponge iron and billet) steel market declined in the range of INR 100-300/t with a major fall of INR 300/t seen in Jalna. Whereas, a slight hike in prices of INR 200/t were seen in Mumbai.

Induction furnace route re-bar prices, too, dropped by INR 100-800/t across the country. However, a major fall of INR 800/t was seen in Hyderabad. On the other hand, offers rose by around INR 200/t in the northern and western regions of the country.

Sources in Raipur informed that semis prices are unlikely to drop further as supply remains tight for sponge iron which, in turn, a drop in margins (conversion spread) for furnace owners. Sponge P-DRI to billet margins in Raipur are currently at INR 11,500/t as against INR 12,000-12,500/t earlier (July).

Raw material

• Jharsuguda based pellet maker sold around 3,000 t raw pellets in local region at INR 14,100/t exw.
  
  

Semi finished

• Induction grade (IF) billet export offers drop to around $570-573/t, exw-Durgapur (equivalent to $600/t CPT Nepal). With slight change in offers, demand remains active from Nepal, sources reported.
  
  
• Sponge P-DRI prices in Raipur unaltered at around INR 31,000/t exw & FoR Raipur. Tight suppliers continue to support prices despite fall in billet prices.
  
  
• Neo Metaliks in Durgapur has kept steel grade pig iron offers stable at INR 39,000/t exw.
  
  
• Sources reported Chandrapur (Maharashtra) based manufacturers offered sponge P-DRI (FeM 80) at INR 31,000/t exw.
  
  
• Mahavir Ferro Alloys sold around 500 t sponge iron (mix material) at INR 32,200/t exw Rourkela.
  
  
• BMM Ispat offered FeM 80 P-DRI lumps at INR 28,800/t exw Bellary & around 5,000 t deals reported in nearby region.
  
  

Rebar (12 mm)

• GK TMT(Fe 500D) offers stable at INR 47,500/t exw Raipur.
  
  
• Shrishtii TMT offers reported at INR 45,500/t exw Raigarh (Down by INR 200/t).
  
  
• Rathi Stelmax TMT offers stable at INR 48,150/t exw Delhi/NCR.
  
  
• Swarup TMT offers stable at INR 46,400/t exw Muzaffarnagar.
  
  
• Mono TMT offers stable at INR 49,900/t FoR Ahmedabad (Down by INR 300/t).
  
  
• Kalika TMT is offering at INR 48,700/t exw Jalna (Up by INR 200/t).
  
  
• CPC Thermex TMT offers reported at INR 45,000/t exw Durgapur.
  
  
• Chaliama based Rungta TMT offers reported at INR 44,700/t exw.
  
  
• Metalics 550D TMT offers reported at INR 46,000/t exw Sambalpur (Down by INR 500/t).
  
  

Wire rod and structure

• Mid scale mills wire rod export offers stable at $615-620/t exw Durgapur, equivalent to $645/t CPT Nepal, via road delivery.
  
  
• Trade reference wire rod prices in Raipur fell by INR 200/t to INR 45,500-45,700/t exw, due to increase in trade discounts. Also, assessment prices in Durgapur down by INR 300/t to INR 45,300-45,500/t exw.
  
  
• Eastern India based a plant has concluded about 5,000 t IF route wire rod export deal to Southeast Asia at around $710/t CIF.
  
  
• Raigarh based Singhal Steel concluded around 1,000 t deals of wire rod at INR 45,200/t exw.
  
  
• Heavy structural steel, base price of 150 mm channel decrease by INR 300/t to INR 47,200/t in Raipur with firm trade discount of INR 700-1,000/t. Trade reference price of 200 mm angle is at INR 49,100-49,500/t exw.
  
  

Reference prices as on 10th Aug'21