Indian Steel Market Update- 07 May'20

Spot steel prices in the finished segment increased further in central & eastern India due to active demand from user segments.

Meanwhile in central India - Raipur, the electricity board has announced reduction in the late payment surcharge to 1% from 1.5% & a moratorium on fixed demand charges for three consecutive months from April.

Rupee & BSE Sensex

-- On 6th May'20 (Wednesday) INR to USD exchange rate stood at INR 75.82

-- BSE Sensex closed at 31,443 (-242) Thursday (7th May'20) as against last day (Wednesday) at 31,685 (+232).

-- NSE Nifty50 index was closed today at 9,199 (-71) & Nifty Metal at 1,695 (-2).

Secondary steel market update -

Raipur: Rebar prices moved up marginally by INR 200/MT to INR 33,200/MT EXW, on a day basis but trade volume remains mild and no major deals were concluded.

-- Current trade reference Rebar price registered at INR 32,700-33,000/MT EXW.

-- Heavy Structures remain same on day basis and basic price registered at INR 32,000/MT, where 200 Angle assessed at INR 34,200-400/MT EXW.

-- Light/Medium structure offerings reported at around INR 26,500/MT, up by INR 100/MT on day basis and 75/40 Channel assessed at INR 30,800-31,000/MT, EXW.

-- Real Ispat has unchanged GK TMT offers at INR 35,300/MT EXW.

-- Wire rod base offers & deal prices remained stable at INR 31,000/MT & INR 30,400-30,600/MT EXW, respectively. Meanwhile, GI Wire (12 G) offers up by INR 200/MT to INR 39,800-40,300/MT & BINDING Wire (20 G) by INR 300/MT to INR 38,800-39,300/MT EXW.

-- Billet offers fell by INR 300-400/MT to INR 27,000-27,100/MT EXW basis through the local plants.

-- Sponge P-DRI offers declined by INR 200/MT to INR 15,600-700/MT EXW.

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 26,700-26,800/MT EXW.

-- Raigarh based Anjani Steels Ltd. (Radhe TMT) is offered at INR 32,800/MT EXW (Up by INR 300/MT).

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

Durgapur: Manufacturers have raised Rebar offers by INR 500/MT to INR 32,000/MT, Wire rod by INR 400/MT to INR 31,200/MT & Billet by INR 500-600/MT to INR 27,000-27,200/MT, EXW.

As per trade sources, less supply leads to support in price range, while demand is not upto the mark.

Rourkela: The sponge manufacturers are offering C-DRI mix material at 15,500-700/MT EXW, offers remain the same as against yesterday. Billet offers fell by INR 300/MT to INR 26,400-500/MT EXW.

-- Bajrangbali Steel Industries Pvt Ltd is offering Rebar at INR 32,500/MT EXW.

-- Odisha based Shubhlabh TMT offers reported at INR 32,800/MT EXW.

-- Manufacturers offering ERW pipe at INR 33,400/MT EXW.

Hyderabad: Trade activities remained limited today, Billet offers unaltered at INR 29,500/MT EXW & Rebar declined by INR 300/MT to INR 35,000/MT EXW.

Bellary: BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 16,200-300/MT EXW & around 1,200 MT deals reported in nearby markets. Officials also added they sold around 10,000 MT Pellets in a nearby market at INR 6,100/MT (ex-plant) a day before.

Mumbai: Guardian Castings Pvt. Ltd. (Guardian TMT) is offering 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: Bhagyalaxmi Rolling Mill Pvt. Ltd. (Polaad TMT) offers at INR 37,000/MT EXW.

-- Kalika Steels Alloys Pvt. Ltd. (Kalika TMT) is offering at INR 36,700/MT EXW.

Ahmedabad: Alang based yards are offering Ship breaking scrap where Melting scrap equivalent to HMS (80-20) registered at 21,000/MT along with few other sizes.

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

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

-- Diamond TMT & Procon Pvt. Ltd. offer Rebar at INR 34,100/MT FoR.

Note: The prices mentioned above for Rebar at 12-25mm, Wire rod at 5.5mm & Billet of 100*100mm.