Indian Steel Prices in Secondary Market Rally - 05 May'20

Spot steel prices increased further in central & eastern regions on account of active demand & less supply. This has influenced mills to deal with increased price range.

Also it is learned that, most of the mills in Raipur, central India are resuming finished steel (Rebar, structure & pipe) production. Hence it seems soon prices of finished steel may find stability, if demand remains intact.

Rupee & BSE Sensex

-- On 5th May'20 (Tuesday) INR to USD exchange rate stood at INR 75.72

-- BSE Sensex closed at 31,453 (-261) Tuesday (5th May'20) as against last day (Monday) at 31,715 (-2,002).

-- NSE Nifty50 index was closed today at 9,205 (-87) & Nifty Metal at 1,693 (-20).

Secondary steel market update -

Raipur: Rebar prices have increased sharply by INR 700/MT on D-o-D basis and current assessment at INR 33,000/MT, where as decent trade volumes were concluded up to INR 32,700/MT (100+/-) EXW, due to strengthening raw material prices (Ingot/billet).

-- Heavy structure offers moved up by INR 400/MT on daily basis and basic price registered at INR 32,000/MT, where 200 angle assessed at INR 34,400/MT (+/-200) EXW.

-- Light/Medium structure offers were reported at around INR 26,200/MT and 75/40 Channel current assessed at INR 30,500-700/MT, EXW.

-- Real Ispat has raised GK TMT offers by INR 600/MT to INR 35,100/MT EXW.

-- Wire rod base offers rallied by INR 500/MT to INR 31,000/MT & deals hovering at INR 30,500-30,700/MT EXW. GI Wire (12 G) offers also gain by INR 300/MT to INR 39,600-39,800/MT & BINDING Wire (20 G) by INR 500/MT to INR 38,500-39,000/MT EXW.

-- Billet offers moved up by INR 200-300/MT to INR 27,400-500/MT FoR basis from Raigarh & EXW basis through the local plants.

-- Sponge P-DRI offers up by INR 200/MT to INR INR 15,800-900/MT EXW. As per producers demand from outside markets improved as Hot Rolling Mills (HRM) are going to resume operations.

Raigarh: The sponge manufacturers have increased offers by INR 100/MT to INR 14,800-900/MT (P-DRI) & INR 15,800-900/MT (C-DRI) EXW. Billet offers rise by INR 500/MT to INR 26,900-27,000/MT EXW.

-- Billet deals learned at INR 27,600-700/MT FoR Raipur from Raigarh based manufacturers.

-- Raigarh based Anjani Steels Ltd. (Radhe TMT) is offered at INR 32,400/MT (up by INR 400/MT).

-- Scan Group branding (Shrishti TMT) offers are at INR 32,700/MT EXW (up by INR 600/MT).

-- Jindal Steel has reported deals of about 1,000 MT steel grade Pig iron at around INR 22,600/MT EXW.

-- Monnet Ispat resumed operation in its Raigarh, central India based integrated steel plant.

Durgapur: The Kharagpur based manufacturer has slightly raised Rebar offers by INR 200/MT to INR 31,300-500/MT, Wire rod by INR 300/MT to INR 30,300-400/MT, while Billet offers unaltered to INR 26,400-500/MT, EXW.

As per officials, Finished steel demand is average from local & north-east region based buyers.

-- Supershakti Metaliks Ltd, also known as Super Smelters partially resumed operations. The company is one of the major Wire rod, Rebar & Billet producers; supply material majorly to north-east regions.

Rourkela: As of now, steel manufacturing units in Odisha which are opening are facing issues in managing their workforce, hence anticipations are high about operations remain disturbed. Meanwhile, offers for sponge C-DRI mix material surge by INR 200/MT to INR 15,200-400/MT EXW. Few billet deals reported at INR 28,200-300/MT FoR Jalna.

-- Bhaskar Steel and Ferro Alloy Ltd is offering Billet at INR 26,000/MT EXW.

-- Bajrangbali Steel Industries Pvt Ltd is offering Rebar at INR 32,200/MT EXW .

-- Shubhlabh TMT offers reported at INR 32,200-32,300/MT EXW.

-- Manufacturers offering ERW pipe at INR 33,000/MT EXW.

Jharkhand: Giridih based Saluja Steel & Power Pvt. Ltd (Saluja Gold TMT) resumed production with 25% of production from the installed capacity i.e; 125 TPD & offering TMT at INR 38,300/MT EXW.

Hyderabad: Trade activities started by manufacturers, Billet offers surge by around INR 1,000/MT to INR 29,000/MT & Rebar by INR 500/MT to INR 34,500/MT; both are EXW.

Bellary: BMM Ispat, a renowned sponge manufacturer offered FeM 80 P-DRI lumps at INR 16,400-500/MT ex-Bellary (up by INR 100-200/MT) & around 1,300 MT deals reported in nearby markets in a day. Officials also added, raw Pellet offers at INR 6,200/MT ( EXW).

Mumbai: Guardian Casting Pvt. Ltd (Guardian TMT) has unchanged offers at INR 34,300/MT EXW.

-- Structure price increased by INR 200/MT & offers for 25*25 and 40*40 Angle stood at INR 37,000/MT and INR 35,000/MT respectively, EXW.

Jalna: Jalna based majority of mill owners are expected to resume their production in next 3 - 5 days.

-- Bhagyalaxmi Rolling Mill Pvt. Ltd. (POLAAD TMT) offers at INR 37,000/MT (up by INR 300/MT) EXW.

Ahmedabad: Alang based few yards offering Ship breaking scrap where Melting scrap equivalent to HMS (80-20) registered at INR 21,000-21,100/MT & Attachment at INR 22,000-22,100/MT along with few other sizes.

-- Billet offers vary from plant to plant and currently stand at INR 27,500-800/MT FoR.

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

-- Shreeyam Power & Steel Industries Ltd. (National TMT) has kept offers unchanged at at INR 34,200/MT FoR.

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