Indian DRI, billet & rebar update - 27 Nov

Indian secondary steel market has observed a rebound in prices by INR 100-600/t (d-o-d) on renewed buying interest. The prices surged across locations except in southern India, where a slight decline of INR 100-200/t was observed.

As per SteelMint's assessment, sponge iron prices have increased by INR 100-200/t, however, the southern market declined by INR 100-200/t (Hyderabad & Bellary). Following the same trend, billet prices have increased by INR 150-600/t. Also, the rebar prices have increased by INR 100-450/t in the majority of the markets.

Trade sources in major locations stated improvement in demand on firm price range, however, buyers turned cautious looking at volatility in offers since a few days.

Raw Material

• Karnataka based BMM Ispat offered raw pellets to INR 11,000/t exw Bellary.
  
  
• Singhal Steel, Raigarh based manufacturer has offered 60-14 silico manganese at INR 60,200-60,300/t exw.
  
  

Semi Finished

• Induction grade billet export offers slightly rise to $465/t exw Durgapur, equivalent to $490/t CPT Nepal. About 2,000 t deals reported on revised offers, via road delivery.
  
  
• Kolkata, eastern India based a trading house has concluded about 6,000 t sponge iron (lumps) export deal to Bangladesh at $368-370/t CFR.
  
  
• Raipur based sponge producers have raised P-DRI offer by INR 100/t to INR 24,500/t exw & sufficient trades reported.
  
  
• Raipur based mills booked sponge C-DRI mix material at INR 24,100/t exw Jajpur and freight cost cited at INR 1,100/t via road.
  
  
• Raigarh based Singhal Steel concluded deals of around 1,000 t billet at INR 33,900/t exw (Up by INR 400/t).
  
  
• Neo Metaliks has reduced steel grade pig iron offer by INR 200/t to INR 30,000/t exw Durgapur.
  
  
• Visa Steels concluded deals of around 500 t steel grade pig iron in local market at INR 29,800/t exw Jajpur.
  
  
• Hare Krishna has offered FeM 79-80 P-DRI at INR 23,800/t exw Bellary.
  
  
• BIOP Steels in South India has offered FeM 80 C-DRI lumps at INR 23,700/t exw Bellary.
  
  
• BMM Ispat has reported about 5,000 t sponge P-DRI deals at around INR 23,600/t exw Bellary.
  
  

Rebar (12 mm)

• Shrishtii TMT offers reported at INR 37,000/t exw Raigarh (Up by INR 200/t).
  
  
• Vibrant TMT offers reported at INR 40,800/t FoR Ahmedabad.
  
  
• Kalika TMT is offering at INR 40,200/t exw Jalna (Up by INR 200/t).
  
  
• Sangam TMT is offering at INR 39,000/t exw Wardha.
  
  
• ARS 550 D offers reported at INR 43,200/t exw Chennai.
  
  

Wire Rod & Structure

• Trade discounts in Raipur wire rod drop by INR 500/t to INR 400-600/t, however base offers remained stable at INR 38,600/t exw. Also, trade reference price in Durgapur increased by INR 500/t to INR 38,200-38,500/t exw.
  
  
• Mid scale mills wire rod export offers up by $5/t to $520-525/t exw Durgapur (excluding loading charges), equivalent to $545-550/t CPT Nepal.
  
  
• Raipur based heavy structure manufacturers, reduce the base price by INR 300/t to INR 38,400/t exw, and maintained trade discount at INR 500-800/t, current trade price of 200 Angle assessed at INR 40,500-40,900/t exw.
  
  

Reference prices as on 27 Nov'20