Indian DRI, billet & rebar update- 29 July '20

Indian steel market observed volatility today. According to the daily assessment sponge iron prices marginally increased by INR 50-100/t in most of the regions however it fell by INR 50-100/t in Raigarh & Rourkela.

Whereas billet prices fell by INR 100-450/t across major locations. Also rebar prices have seen a decline of INR 100-200/t in many locations however it surged up by INR 100-200/t in Ahmedabad, Mumbai & Bangalore respectively.

Sources are of the view that billet prices should not fall rigorously on account of higher sponge iron & raw material prices.

Semi Finished

• Mid scale mills billet export offers to Nepal drop at $370-373/t & wire rod at $421-423/t exw at Durgapur. Freight cost to Nepal (Raxaul border) via road reported at $25/t.
  
  
• Raipur based sponge manufacturers have kept P-DRI offers firm at INR 17,800/t exw, however deals remain limited due to drop in billet prices.
  
  
• Ind Synergy offered P-DRI at INR 16,300/t & billet at INR 28,400-28,500/t exw Raigarh.
  
  
• Durgapur based Neo Metaliks has kept steel grade pig iron offers firm at INR 26,500/t, however another private mill - Kajaria Iron has raised offers by INR 300/t to INR 26,800/t exw.
  
  
• Rashmi Metaliks has offered sponge C-DRI at INR 19,400/t FoR Durgapur, as per market sources.
  
  
• Visa Steels offering steel grade pig iron at INR 25,500/t exw Jajpur.
  
  
• BIOP Steels in South India has decreased sponge prices by INR 200/t, offering FeM 80 & 82 C-DRI lumps at INR 17,700/t & INR 18,100/t exw Karnataka.
  
  
• BMM Ispat a price trend setter in South Indian sponge market has kept offers unaltered today and offered FeM 80 P-DRI lumps at INR 17,600-17,700/t exw Bellary.
  
  

Rebar (12 mm)

• GK TMT keep offer stable at INR 34,200/t exw Raipur.
  
  
• Scan Group (Shrishti TMT) is offering at INR 32,100/t exw Raigarh.
  
  
• Paras TMT offers at INR 33,300/t exw Muzaffarnagar.
  
  
• Guardian TMT is offering at INR 32,500/t exw Mumbai (Up by INR 100/t).
  
  
• Polaad TMT unchanged their offer at INR 33,500/t exw Jalna.
  
  
• Mono TMT is offering at INR 34,100/t FoR Ahmedabad (Up by INR 300/t).
  
  
• Bajrangbali Steel Industries Pvt Ltd is offering rebar at INR 32,000t exw Rourkela.
  
  
• Trade discount by Raipur based heavy structure manufacturers maintained at INR 800-1,000/t and trade price of 200 Angle is at INR 35,400-35,700/t exw.
  
  

Wire Rod & Pipe

• As per Nepal based producers, wire rod export offers by Indian large mills hovering at $440/t ex-mill, however no fresh bookings.
  
  
• ERW Pipe manufacturers have decreased offers by INR 200/t to INR 34,700-34,800/t ex-Raipur.
  
  
• Trade discount in Raipur wire rod increased by INR 200/t to INR 1,200-1,400/t, also base prices unchanged at INR 33,400/t ex-Raipur. However in Durgapur trade reference prices fell by INR 400/t to INR 32,000-32,400/t exw.
  
  

Reference prices as on 29th Jul'20