Indian Steel Market Update- 20 May'20
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Spot steel prices rebounded with improved buying inquiries after a slight correction yesterday. As per daily assessment, rebar prices surge by INR 100-400/MT, billet by INR 100-500/MT & sponge iron by INR 100-300/MT in major locations.
The billet prices surged in central & eastern India by INR 300-500/MT & rebar prices in eastern India by INR 300-400/MT on good demand.
Participants believe that, finished steel prices are likely to remain supported on assumptions of active demand & limited stock among producers.
SteelMint's price assessment for induction furnaces billet in Indian market stood at INR 26,700-31,000/MT (USD 350-407) EXW.
Further, the coal-based sponge (78-80 FeM) C-DRI price assessment was at INR 15,500-16,900/MT (USD 204-219); prices are EXW & excluding GST.
Rupee & BSE Sensex
-- On 20th May 2020 (Wednesday) INR to USD exchange rate stood at INR 75.63.
-- ICEX (Indian Commodity Exchange Ltd) May'20 contract for STEELLONG today open at INR 30,800/MT & last traded (IST 18:02 hrs) at INR 30,700/MT.
-- BSE Sensex closed at 30,818(+622) on Wednesday, as against last day (Tuesday) at 30,196(+167).
-- NSE Nifty50 index was closed today at 9,066(+187) & Nifty Metal at 1,711(+17).
Raw Material
-- NMDC has resumed pellet offers from its Donimalai pellet plant after a gap of almost 2.5 months. Current offers for Fe 64% pellets are at INR 6,000/MT FoT (Free on truck) basis.
Semi Finished
-- Mid scale mills billet export offers to Nepal remained strong and assessed at USD 355/MT ex-mill at Durgapur. As per participants few deals concluded last week at USD 348-350/MT ex-mill, Durgapur, equivalent to USD 380/MT CPT Nepal.
-- Durgapur based Neo Metaliks has further raised steel grade pig iron offers by INR 200/MT to INR 23,800-24,000/MT EXW. However no major deals, as per officials.
-- Raipur based major merchant sponge producer has reduced P-DRI offers by INR 100-200/MT to INR 15,200-300/MT EXW. As per participants, deals concluded at INR 15,300/MT EXW & FoR basis.
-- Rashmi Metaliks in Durgapur has raised sponge P-DRI price by INR 200/MT to INR 16,000/MT FoR Durgapur, sources reported.
-- BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 16,200-16,400/MT ex-Bellary.
Rebar (12 mm)
-- Rathi Stelmax Steel is current offering at INR 36,200/MT EXW (North Region).
-- Sarvottam Rolling Mills Pvt. Ltd. (Paras TMT) is offering at INR 34,600/MT EXW (Muzaffarnagar).
-- Real Ispat (GK TMT) has unchanged their offer at INR 36,000/MT EXW (Raipur).
-- Raigarh based Scan Group (Shrishti TMT) is offering at INR 33,700/MT EXW.
-- Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) has unchanged their offers at INR 36,300/MT EXW (Jalna).
-- Mono Steel (India) Ltd. (Mono TMT) unchanged their offer at INR 35,800/MT FoR (Gujarat).
-- Sakthi Ferro Alloys India Pvt. Ltd. (SSI TMT) is offering at INR 36,000/MT EXW (Chennai).
-- Trade discount by Raipur based heavy structure manufacturers have maintained at INR 500-800/MT and the trade reference prices at INR 34,400-34,700/MT (200 Angle) EXW.
Wire Rod & Pipe
-- ERW Pipe Manufacturers have increased offers by INR 100-300/MT to INR 34,700-34,800/MT ex-Raipur, INR 37,000/MT ex-Mandi Gobindgarh & INR 34,500/MT ex-Rourkela.
-- Trade discounts in Raipur wire rod drop sharply to INR 200-400/MT on rising billet prices & improved inquiries. Trade reference prices up by INR 300/MT to INR 30,900-31,100/MT ex-Raipur & by INR 200/MT to INR 31,500-700/MT ex-Durgapur.
Reference prices as on 20th May'20
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M | |
| Scrap | Ex-Alang | HMS(80:20) | 22,400 | 22,300 | 22,500 | - 200 | 21,800 | 22,600 |
| Ex-Chennai | HMS(80:20) | 21,100 | 20,800 | 21,200 | - 100 | 20,900 | 21,800 | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 16,900 | 16,800 | 17,000 | + 300 | 16,400 | 17,450 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 15,500 | 15,400 | 15,600 | 0 | 15,200 | 16,600 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 16,200 | 16,100 | 16,300 | + 100 | 15,900 | 17,700 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 16,200 | 16,100 | 16,300 | 0 | 16,100 | 16,500 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 15,900 | 15,800 | 16,000 | + 300 | 15,400 | 16,550 |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 15,300 | 15,200 | 15,400 | + 100 | 14,900 | 16,900 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 16,300 | 16,200 | 16,400 | 0 | 16,200 | 16,100 | |
| Ex-Hyderabad | Lumps, FeM 80%, +/-1 | 16,900 | 16,800 | 17,000 | + 100 | 16,700 | 16,800 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 30,650 | 30,600 | 30,700 | + 250 | 29,350 | 29,650 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 26,800 | 26,700 | 26,900 | + 500 | 25,900 | 26,150 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 26,200 | 26,100 | 26,300 | + 200 | 25,300 | 25,750 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 27,100 | 27,000 | 27,200 | + 600 | 25,600 | 26,150 | |
| Billet | Ex-Mandi Gobindgarh | 100x100mm, IS 2831 | 30,800 | 30,700 | 30,900 | + 300 | 29,400 | 29,800 |
| Ex-Durgapur | 100x100mm, IS 2831 | 27,300 | 27,200 | 27,400 | + 500 | 26,400 | 26,600 | |
| Ex-Rourkela | 100x100mm, IS 2831 | 26,700 | 26,600 | 26,800 | + 200 | 25,800 | 26,100 | |
| Ex-Raipur | 100x100mm, IS 2831 | 27,500 | 27,400 | 27,600 | + 500 | 26,100 | 26,500 | |
| Ex-Ahmedabad | 100x100mm, IS 2831 | 29,000 | 28,900 | 29,100 | - 100 | NA | 28,400 | |
| Ex-Chennai | 100x100mm, IS 2831 | 31,000 | 31,000 | 31,300 | + 200 | 30,200 | 30,000 | |
| Ex-Hyderabad | 100x100mm, IS 2831 | 28,700 | 28,500 | 29,000 | + 200 | 27,500 | 28,000 | |
| TMT | Ex-Mandi Gobindgarh | 12-25mm, Induction Grade, IS 1786- 500 Fe | 35,800 | 35,600 | 35,900 | + 100 | NA | 34,300 |
| Ex-Durgapur | 12-25mm, Induction Grade, IS 1786- 500 Fe | 33,000 | 32,800 | 33,200 | + 300 | 31,700 | 30,600 | |
| Ex-Rourkela | 12-25mm, Induction Grade, IS 1786- 500 Fe | 33,300 | 33,100 | 33,400 | + 300 | 32,300 | 30,900 | |
| Ex-Raipur | 12-25mm, Induction Grade, IS 1786- 500 Fe | 34,000 | 33,800 | 34,100 | + 100 | 32,500 | 30,800 | |
| Ex-Jalna | 12-25mm, Induction Grade, IS 1786- 500 Fe | 36,000 | 35,800 | 36,200 | + 300 | NA | 35,100 | |
| Ex-Mumbai | 12-25mm, Induction Grade, IS 1786- 500 Fe | 34,200 | 34,000 | 34,300 | 0 | NA | 33,400 | |
| Ex-Chennai | 12-25mm, Induction Grade, IS 1786- 500 Fe | 36,500 | 36,300 | 36,600 | 0 | 36,000 | 34,800 | |
| Ex-Hyderabad | 12-25mm, Induction Grade, IS 1786- 500 Fe | 34,500 | 34,400 | 34,600 | 0 | 34,500 | 32,500 | |
| Wire Rod | Ex-Durgapur | 5.5 mm, Wire Rod, Induction grade | 31,600 | 31,500 | 32,000 | + 200 | 30,700 | 29,700 |
| Ex-Raipur | 5.5 mm, Wire Rod, Induction grade | 31,100 | 30,900 | 31,300 | + 300 | 29,300 | 29,300 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
