Indian steel market update- 17 July'20

Indian sponge iron & billet prices fell today by INR 100-200/t due to poor off-take in finished products, in which rebar prices fell by INR 100-500/t with major drop of INR 300-500/t in southern & northern regions.

The billet manufacturers in the central & eastern regions shared that sponge iron prices have remained strong, however due to weak finished steel demand, billet prices are softening.

Raw Material

• SAIL had scheduled an auction for 100,000 t iron ore fines (Fe 61.3%) from its Barsua iron ore mines in Odisha yesterday (16th Jul'20) & failed to fetch bids from participants.
  
  

Semi Finished

• About 3000-4,000 t sponge iron export deals have been concluded to Bangladesh recently at $245-250/t CPT Benapole
  
  
• Neo Metaliks in Durgapur reported limited inquiries on reduced offers of steel grade pig iron by INR 200/t to INR 24,800/t EXW.
  
  
• Visa Steels concluded deals of around 600t steel grade pig iron at INR 23,700/t EXW for Raigarh.
  
  
• Raipur based major sponge producers have kept sponge P-DRI offers firm at INR 16,100-200/t EXW & about 2,000-2,500 t deals reported.
  
  
• SAIL has floated an auction for around 5,000 t prime steel grade pig iron to be held on 21 Jul'20 from its Bhilai Steel Plant, Chhattisgarh.
  
  
• Ind Synergy (Raigarh) offered P-DRI at INR 15,800/t & Billet at INR 26,900/t ex-Raigarh.
  
  
• BIOP Steels in South India is offering FeM 80 & 82 C-DRI lumps at INR 15,500/t & INR 15,800/t EXW.
  
  
• BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 15,400-15,500/t ex-Bellary.
  
  

Rebar (12 mm)

• Vizag Steel has floated an ocean export tender for about 10,000 t wire rod coils (SAE 1008, SAE 1010, SAE 1018) & the due date of bid submission is 22 Jul'20 at 13:00 hrs (IST).
  
  
• Paras TMT is offering at INR 32,300/t EXW Muzaffarnagar.
  
  
• GK TMT offers at INR 33,200/t EXW Raipur (Down by INR 400/t).
  
  
• Scan Group (Shrishti TMT) is offering at INR 30,900/t EXW Raigarh.
  
  
• Bajrangbali Steel Industries Pvt Ltd is offering rebar at INR 30,500/t EXW Rourkela.
  
  
• Odisha based Shubhlabh TMT offers reported at INR 30,500/MT EXW.
  
  
• Kalika TMT offers at INR 31,800/t EXW Jalna (Down by INR 200/t).
  
  
• Vinayak TMT is offering at INR 33,700/t FoR Ahmedabad.
  
  
• Trade discount by Raipur based heavy structure manufacturers maintained at INR 700-1,000/t and trade price of 200 Angle is at INR 34,300-34,600/t EXW.
  
  

Wire Rod & Pipe

• Trade discounts in Raipur wire rod stable at INR 1,100-1,300/t, however base price fell by INR 400/t to INR 31,500/t EXW. Also, in Durgapur trade reference price dropped by INR 200/t to INR 31,200-31,500/t ex-plant.
  
  
• ERW Pipe manufacturers have decreased offers by INR 400/t to INR 33,300-33,400/t ex-Raipur.
  
  

Reference prices as on 17th Jul'20

Basic prices in INR/t & excluding GST @ 18%
Source: SteelMint Research