Indian DRI, billet & rebar update- 13th Aug

Indian steel market continued positive trend & the prices of sponge iron further increased by INR 200-400/t & billet prices by INR 300-700/t, d-o-d in major locations.

Also, on daily basis, trades rebar prices moved up by INR 100-500/t & melting scrap (HMS) by INR 200-600/t across major markets.

However with rising prices, conversion spread (margins) of standalone rolling-mills & furnaces remained low, which seems to support price range as there are limited scope for fall in raw material prices due to shortage.

Raw Material

• BMM Ispat sold around 5,000 t pellets at INR 7,900/t exw & kept offers unaltered to INR 8,000/t exw.
  
  

Semi Finished

• Raipur based major sponge manufacturers have sharply raised P-DRI offers to INR 21,000-21,200/t exw, however demand was limited, as per participants.
  
  
• Ind Synergy (Raigarh) offered P-DRI at INR 20,300/t & billet at INR 30,900/t exw Raigarh.
  
  
• Singhal Steel offered billet at INR 31,000/t exw Raigarh.
  
  
• Bhaskar Steel and Ferro Alloy Ltd (Odisha) sold around 400 t sponge C-DRI (mix material) at INR 21,000/t exw & increased offers to INR 21,400/t exw.
  
  
• Visa Steels offering steel grade pig iron at INR 29,000/t exw Jajpur. However no major sales reported by officials.
  
  
• Shri Hari Sponge offered FeM 80 sponge C-DRI (mix material) at INR 21,000/t exw Rourkela (Up by INR 300/t).
  
  
• Durgapur based Neo Metaliks has further gained steel grade pig iron prices by INR 500/t to INR 29,500/t & few trades reported at INR 29,300-29,500/t, exw.
  
  
• Rashmi Metaliks has raised sponge P-DRI offers by INR 400/t to INR 21,500/t FoR Durgapur, as per sources.
  
  
• BMM Ispat increase offers by INR 300/MT for FeM 80 P-DRI lumps to INR 20,300/t exw Bellary.
  
  

Rebar (12 mm)

• GK TMT is offering at INR 36,300/t exw Raipur (up by INR 300/t).
  
  
• Sagar TMT is offering at INR 34,900/t exw Raipur (up by INR 500/t).
  
  
• Shrishti TMT offers reported at INR 34,000/t exw Raigarh (Up by INR 200/t).
  
  
• National TMT is offering at INR 36,600/t FoR Ahmedabad.
  
  
• Akshat TMT is offering at INR 36,300/t FoR Ahmedabad.
  
  
• Sangam TMT is offering at INR 34,700/t exw Wardha.
  
  
• Kalika TMT is offering at 35,000/t exw Jalna.
  
  
• Triple Power is offering at INR 35,500/t exw Chennai (up by INR 500/t).
  
  

Wire Rod & Pipe

• ERW Pipe manufacturers have increased offers by INR 400-500/t to INR 36,500-36,600/t exw Raipur & INR 39,000/t exw Mandi Gobindgarh.
  
  
• Trade discount in Raipur wire rod is hovering at INR 700-900/t and base price remains firm at INR 34,500/t exw. However in Durgapur trade reference prices up by INR 400/t to INR 34,400-34,700/t exw.
  
  

Reference prices as on 13th Aug'20