Indian Steel Market Update- 06 May'20

Spot steel prices in eastern India increased further, while in the central region prices marked stability on daily trade activities, as per SteelMint's assessment.

Meanwhile it is learned that Mandi Gobindgarh, Punjab based steel plants are likely to resume operations in a day or by weekend as the govt allowed them to work but with 8-12 hrs on a daily basis.

Rupee & BSE Sensex

-- On 6th May'20 (Wednesday) INR to USD exchange rate stood at INR 75.90

-- BSE Sensex closed at 31,685 (+232) Wednesday (6th May'20) as against last day (Tuesday) at 31,453 (-261).

-- NSE Nifty50 index was closed today at 9,270 (+65) & Nifty Metal at 1,697 (+4).

Secondary steel market update -

Raipur: Rebar prices remained same on a daily basis but trade volume couldn't gather adequate buying inquiries from nearby locations as trade associates shared that material bundling and lifting are getting slow due to lack of labors.

-- Current trade reference price of Rebar registered at INR 32,600-900/MT EXW.

-- Heavy structures remain same on day basis and basic price registered at INR 32,000/MT where 200 angle current assessed at INR 34,400/MT (+/-200) EXW.

-- Light/Medium structure offers are reported at around INR 26,400/MT, up by INR 200/MT D-o-D and 75/40 Channel assessed at INR 30,700-900/MT, EXW.

-- Real Ispat has further raised GK TMT offers by INR 200/MT to INR 35,8300/MT EXW.

-- Wire rod base offers stable at INR 31,000/MT & deals reported at INR 30,400-30,600/MT EXW. Meanwhile, GI Wire (12 G) offers also unchanged to INR 39,600-39,800/MT & BINDING Wire (20 G) at INR 38,500-39,000/MT EXW.

-- Billet offers marked stability at INR 27,400-500/MT FoR basis from Raigarh & EXW basis through the local plants.

-- Sponge P-DRI offers are hovering at INR 15,700-800/MT EXW, drop by INR 100/MT, D-o-D.

-- Godawari Power & Ispat notified that it is resuming its manufacturing activities across all the divisions including R.R. Ispat Unit. gradually and the production shall be increased in accordance to the product demand.

Raigarh: The manufacturers have kept offers unaltered at INR 14,800/MT (P-DRI) & INR 15,800/MT (C-DRI) EXW. Billet offers reported at INR 26,900-27,000/MT EXW.

-- Billet deals reported at INR 27,500-600/MT FoR Raipur from Raigarh based manufacturers.

-- Anjani Steels Ltd. (Radhe TMT) offers at INR 32,500/MT EXW.

-- Scan Group branding (Shrishti TMT) offers at INR 32,900/MT EXW (up by INR 200/MT).

Durgapur: A Kharagpur based manufacturer has raised rebar offers by INR 200-300/MT to INR 31,500-600/MT, Wire rod by INR 500/MT to INR 30,700-800/MT, however Billet offers remain unaltered to INR 26,400-500/MT, EXW.

As per officials, finished steel stock lessened in the market, which in turn led to surge in price range on daily trade activities along with active demand.

Rourkela: The sponge manufacturers are offering C-DRI mix material at INR 15,600-700/MT EXW, surge by INR 300/MT as against the last day. Similarly, Billet offers up by INR 500-600/MT to INR 26,800/MT EXW.

-- Bajrangbali Steel Industries Pvt Ltd is offering Rebar at INR 32,800/MT EXW.

-- ShubhLabh TMT offers reported at INR 33,000/MT EXW.

-- Manufacturers offering ERW pipe at INR 33,500/MT EXW.

Jharkhand: Giridih based Saluja Gold TMT offering same as yesterday at INR 38300/MT. Most of the secondary plants are still inactive and seems to remain the same until lockdown gets over. The major reason behind assessed, limited availability of labor & no relaxation in fixed demand charge in electricity bills by the state government.

Hyderabad: Billet offers surge by around 500/MT to INR 29,500/MT & Rebar by INR 800-1,000/MT to INR 35,300-35,500/MT; both are EXW.

-- Few furnaces have booked FeM 80 P-DRI from Bellary at INR 16,800-16,900/MT FoR Hyderabad.

Chennai: J.R. Metal Chennai Ltd. (JR TMT) offers at INR 36,000/MT EXW.

-- ARS Steel (ARS 500 D) currently offers Rebar at INR 39,000/MT.

Bellary: BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 16,200-300/MT EXW & around 2,000 MT deals reported in nearby markets in a day.

-- Manufacturers offering Billet at around INR 28,900-29,000/MT EXW.

-- Bangalore based A One Gold Steel offers Rebar at INR 36,500/MT EXW.

Mumbai: Guardian Castings Pvt. Ltd. (Guardian TMT) is offered at INR 34,300/MT EXW.

-- Jaideep Metallics & Alloys Pvt. Ltd. (SUN TMT) offers at INR 34,300/MT EXW.

-- Structure 25*25 Angle price stood at INR 37,000/MT and for 40*40 Angle at INR 35,000/MT EXW.

Jalna: Billet offers stand at INR 29,500/MT EXW.

-- Bhagyalaxmi Rolling Mill Pvt. Ltd. (POLAAD TMT) offers at INR 37,000/MT EXW.

Ahmedabad: Alang based yards offering Ship breaking scrap, Melting scrap equivalent to HMS (80-20) registered at INR 20,900/MT & Attachment at INR 21,800/MT along with few other sizes.

-- Billet offers at INR 27,500/MT FoR.

-- Trade price of Rebar at INR 33,400-33,800/MT FoR.

-- Mono Steel India Ltd. (Mono TMT) offers for Rebar are at INR 33,400/MT FoR.