Indian DRI, billet and rebar update - 27 Apr

Indian secondary steel market has noticed a price correction by up to INR 800/t ($11), d-o-d basis.

As per the assessment, the domestic billet offers have fallen by INR 200-500/t, whereas, a major hike of INR 500/t was observed in Eastern India (Durgapur). Also, sponge iron prices have declined by INR 100-300/t with a sharp fall of INR 600/t seen in Raigarh.

Meanwhile, rebar prices have also dropped by INR 100-800/t across the major locations, while a slight hike of around INR 300/t was recorded in Hyderabad.

Market sources are expecting, semis prices to remain under pressure as finished steel off-take is poor due to extension in lockdown in majority of the states.

Raw Material

• Karnataka based BMM Ispat offered raw pellets at INR 12,200/t exw Bellary.
  
  

Semi Finished

• Induction grade billet export offers gain by $10/t to $555/t exw Durgapur, equivalent to $580-585/t CPT Nepal.
  
  
• Neo Metaliks has kept steel grade pig iron offers firm at INR 38,500/t exw, however demand is weak, as per officials.
  
  
• Sponge P-DRI offers further fall in Raipur due to weak demand. The plants have floated offers at INR 28,700-28,800/t, however a few deals reported at INR 28,400-28,500/t on FoR Raipur basis.
  
  
• Visa Steels concluded deals of around 500 t steel grade pig iron in local region at INR 38,400/t exw Jajpur.
  
  
• Raigarh based Singhal Steel offered billet at INR 40,000/t exw (Down by INR 400/t).
  
  
• Jharsuguda, Odisha based sponge supplier offered FeM 80 P-DRI at around INR 28,700/t FoR Raipur. However no major deals, as per officials.
  
  
• Jajpur, Odisha based sponge supplier sold around 500 t FeM 80 C-DRI mix material at around INR 29,900/t FoR Raipur.
  
  
• BMM Ispat kept offers unchanged for FeM 80 P-DRI lumps at INR 28,000/t exw Bellary.
  
  
• Jalna based billet sellers have observed no buying inquiries consecutively on the second day due to lack of demand in finished steel and most of the rolling mills have resumed billet productions, so the buyers are not willing to procure billet from merchant market.
  
  

Rebar (12 mm)

• GK TMT is offering at INR 48,200/t exw Raipur (Down by INR 800/t).
  
  
• Metalics 550D TMT offers reported at INR 47,500/t exw Sambalpur.
  
  
• Shrishtii TMT offers reported at INR 45,800/t exw Raigarh (Down by INR 200/t).
  
  
• Rathi Stelmax TMT offers reported at INR 49,750 exw Delhi/NCR.
  
  
• Century TMT offers unchanged at INR 46,500/t exw Muzaffarnagar.
  
  
• Mono TMT is offering at INR 49,900/t FoR Ahmedabad (Down by INR 500/t).
  
  
• Polaad TMT offer unchanged at INR 50,200/t exw Jalna.
  
  

Wire Rod and Structure

• Mid scale mills wire rod export offers gain by $5-10/t to $620/t exw Durgapur, equivalent to $645-650/t CPT Nepal.
  
  
• Trade discounts in Raipur wire rod slightly increased to INR 1,300-1,500/t & base offers dropped by INR 200/t to INR 46,000/t exw. However, trade reference price in Durgapur increased by INR 400/t to INR 45,500-45,700/t exw.
  
  
• Raipur based heavy structure steel manufacturers, kept stable the base price of 150 mm channel at INR 47,200/t, and given trade discount at INR 1,200-1,500/t, current trade reference price of 200 mm angle is at INR 48,600-49,000/t exw.
  
  

Reference prices as on 27th Apr'21