Indian DRI, billet and rebar update - 12 May

Spot trades in Indian secondary steel market slowed down slightly today due to a constant surge in prices by up to INR 1,200/t ($16) today.

According to SteelMint's assessment, domestic sponge iron offers have increased sharply by INR 100-1,200/t with a major hike noticed in Central and Southern regions by INR 1,000-1,200/t. Also, billet prices have surged by INR 100-1,000/t in many locations with a major hike of around INR 800-1,000/t witnessed in Rourkela, Mumbai & Chennai respectively.

In line with this, rebar prices have risen by INR 100-500/t in all the major markets.

Inquiries remained subdued as buyers resisted placing orders at such higher offers amidst lockdown in major states, SteelMint learned from industry participants.

Raw Material

• Karnataka based BMM Ispat sold around 5,000 t pellets in nearby market at INR 14,000/t exw Bellary.
  
  
• Odisha based sponge manufacturer booked 5,000 t RB2 coal at INR 7,200/t from Gopalpur port.
  
  

Semi Finished

• Raipur based sponge P-DRI makers have further raised offers by INR 1,000-1,200/t to INR 32,500-32,600/t exw, however a few deals reported at INR 32,000-32,400/t FoR Raipur from outside plants.
  
  
• Neo Metaliks in Durgapur has reported active demand on floated steel grade pig iron offers at INR 39,800-40,000/t as against yesterday at INR 39,000-39,200/t exw.
  
  
• Jindal Steel concluded deals of around 1,000 t steel grade pig iron at INR 39,500/t exw Raigarh. Later on manufacturer holding sales to maintain margins and supply-demand chain.
  
  
• Jharsuguda, Odisha based sponge supplier offered FeM 80 P-DRI at around INR 32,400-32,500/t FoR Raipur.
  
  
• Ind Synergy (Raigarh) offered billet at INR 43,900/t exw (Up by INR 600/t).
  
  
• Mahavir Ferro Alloys sold around 2,500 t billet (100×100 mm) to Nepal at INR 44,500/t ($610) exw Rourkela.
  
  
• Bhaskar Steel and Ferro Alloy Ltd has offered billet at INR 43,900/t exw Badtumkela. (Up by INR 600/t).
  
  
• Odisha based sponge supplier sold around 1,200 t FeM 80 C-DRI mix material at around INR 32,800-32,900/t FoR Raipur.
  
  
• BMM Ispat offered FeM 80 P-DRI lumps at INR 31,000/t exw Bellary (Up by INR 1,000/t).
  
  

Rebar (12 mm)

• Metalics 550D TMT offers reported at INR 49,500/t exw Sambalpur (Up by INR 700/t).
  
  
• Shrishtii TMT offers reported at INR 48,300/t exw Raigarh (Up by INR 300/t).
  
  
• Rathi Stelmax TMT offers stable at INR 51,500 exw Delhi/NCR.
  
  
• Swarup TMT offers reported at INR 50,200/t exw Muzaffarnagar (Up by INR 200/t).
  
  
• Mono TMT is offering at INR 52,100/t FoR Ahmedabad (Up by INR 300/t).
  
  
• Polaad TMT offers unchanged at INR 50,800/t exw Jalna.
  
  
• VRKP TMT offers reported at INR 51,300/t exw Banglore.
  
  

Wire Rod and Structure

• Trade discounts in Raipur wire rod stands at INR 1,500-1,700/t & base offers up by INR 1,000/t to INR 50,000/t exw. Also, prices in Durgapur gain by INR 500/t to INR 49,500-49,800/t exw.
  
  
• Raipur based heavy structure steel manufacturers, increase the base price of 150 mm channel by INR 2,000/t to INR 50,000/t, and given trade discount at INR 1,000-1,400/t, current trade reference price of 200 mm angle is at INR 51,500-52,000/t exw.
  
  

Reference prices as on 12th May'21