Category Archives: Billet

Indian DRI, billet and rebar update – 27 Jul

The Indian secondary steel market witnessed mixed trends on 27 Jul’21 even as prices fluctuated in the range of INR 100-400/t d-o-d.

As per SteelMint assessment, Indian semi-finished steel (sponge iron and billet) prices fluctuated within INR 100-400/t across markets in the country. The induction furnace rebar market recorded mixed trends as prices fluctuated by around INR 100-400/t in all major locations.

Sources are optimistic about market outlook. However, a price correction in Punjab today has resulted in slight price corrections across regions, SteelMint notes.

Semi finished

  • Induction grade billet export offers stable at $565-570/t exw Durgapur (equivalent to $595/t CPT Nepal), via road delivery.
  • Sponge P-DRI prices in Raipur fell by INR 200/t & deals reported at INR 29,800-29,900/t on exw & FoR basis.
  • Durgapur based Neo Metaliks has raised steel grade pig iron offers by INR 300/t to INR 38,500/t exw.
  • Jharkhand based billet manufacturer offered at INR 42,200/t and sponge FeM 79 P-DRI at around INR 29,600/t exw Ramgarh.
  • Jharsuguda, Odisha based sponge supplier offered FeM 80 P-DRI at around INR 30,000/t FoR Raipur.
  • BMM Ispat offered FeM 80 P-DRI lumps at INR 29,100/t exw Bellary & around 1,200 t deals reported in nearby region.

Rebar (12 mm)

  • GK TMT(Fe 500D) offers stable at INR 47,400/t exw Raipur.
  • Shrishtii TMT offers reported at INR 45,200/t exw Raigarh (Down by INR 200/t).
  • Rana 550 TMT offers reported at INR 45,800/t exw Muzaffarnagar (Up by INR 200/t).
  • Mono TMT is offering at INR 49,200/t FoR Ahmedabad (Up by INR 200/t).
  • Polaad TMT offers stable at INR 47,700/t exw Jalna.
  • CPC Thermex TMT is offering at INR 44,300/t exw Durgapur.
  • Metalics 550D TMT offers reported at INR 46,000/t exw Sambalpur.
  • ARS TMT(Fe 550 D) offers unaltered at INR 51,100/t exw Chennai.

Wire rod and structure

  • Mid scale mills wire rod export offers reported at $615-620/t exw Durgapur, equivalent to $645/t CPT Nepal, via road delivery.
  • Trade reference wire rod prices in Raipur down by INR 100/t to INR 45,600-45,800/t exw, due to increase in trade discounts. However, assessment prices in Durgapur increased to INR 45,500-46,000/t exw.
  • Heavy structural steel, base price of 150 mm channel increased by INR 300/t to INR 46,700/t in Raipur with firm trade discount of INR 700-900/t. Trade reference price of 200 mm angle is at INR 48,600-49,000/t exw.

Reference prices as on 27th Jul’21

 

SteelMint: Raipur billet index drops on falling prices in north India – 27 Jul

SteelMint’s daily billet index is assessed at INR 42,400/tonne (t) (-INR 200) exw-Raipur on 27 Jul’21.

About 4,000 t of transactions in steel billet were recorded by SteelMint today, as against 8,920 t on 26 Jul.

The index dropped slightly due to falling prices in Punjab, north India. However, sources are expecting billet prices to remain supported as there is no selling pressure on the part of producers, although supply of ready-delivery material remains tight.

  • This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50% whereas other data sets are considered as T2 and given a weightage of the balance 50%.
  • Transactions (T1) – Nine trades were recorded in the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which three trades were recorded at INR 42,300/t, two deals at INR 42,500/t, and one deal each at INR 42,700/t, INR 42,600/t, INR 42,450/t and INR 42,400/t. The average price of these nine transactions was INR 42,426/t and given a 50% weightage in the final price calculation.
  • Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 42,413/t and given a 50% weightage in the final price calculation.

The final price for billet exw Raipur was at INR 42,419/t, rounded to INR 42,400/t exw.

Click for detailed methodology

T1: Trade
T2: Offer/Bid/Indicative

 

China: Domestic billet prices rise despite sliding futures

Steel billet prices in China’s Tangshan rose by RMB 20/t ($3/t) d-o-d on 27 Jul’21. Prices of domestic billet were reported at RMB 5,260/t ($809/t), inclusive of 13% VAT. SteelMint notes that overall billet trading was smooth. According to data maintained with SteelMint, Chinese rebar futures contract for Oct’21 delivery witnessed a sharp decline of RMB 74/t ($11/t) and settled at RMB 5,613/t ($11/t) on 27 Jul’21.

 
Indian DRI, billet and rebar update - 26 Jul

Indian DRI, billet and rebar update – 26 Jul

Spot trading in the Indian secondary steel market remained active on 26 Jul’21 with prices increasing by up to INR 600/t ($8) d-o-d.

As per SteelMint assessment, sponge iron prices surged by INR 100-500/t in major markets, with a sharp hike of INR 500/t in Raigarh’s sponge iron market. Also, domestic billet offers moved up by INR 100-600/t across the country. However, a major hike was witnessed in Mumbai (Maharashtra).

In addition, the induction furnace rebar market recorded positive trends as prices increased by INR 100-300/t in many regions, while price correction of INR 100/t was seen in the central and southern parts of India.

Raw material

  • Jharsuguda based pellet maker sold around 15,000 t raw pellets to Raigarh & local region at INR 14,600/t exw.
  • Singhal Steel, Raigarh based manufacturer has offered 60-14 silico manganese at INR 93,500/t exw.
  • Karnataka based BMM Ispat offered raw pellets at INR 13,000/t exw Bellary

Semi finished

  • Induction grade billet export offers stood at $565-570/t exw Durgapur (equivalent to $595/t CPT Nepal), via road delivery.
  • Sponge P-DRI prices in Raipur surged by INR 300/t & deals reported at INR 29,600-30,000/t on exw & FoR basis.
  • Durgapur based Neo Metaliks has raised steel grade pig iron offers by INR 200/t to INR 38,200/t exw.
  • Jharsuguda, Odisha based sponge supplier sold around 1,700 t FeM 80 P-DRI at around INR 28,900/t exw.
  • BMM Ispat offered FeM 80 P-DRI lumps at INR 29,200-29,300/t exw Bellary & around 1,000 t deals reported in nearby region.
  • Jindal Steel has offered panther shots (granulated pig iron) at INR 38,000/t exw Angul.

Rebar (12 mm)

  • GK TMT(Fe 500D) offers stable at INR 47,400/t exw Raipur.
  • Shrishtii TMT offers reported at INR 45,400/t exw Raigarh (Up by INR 400/t).
  • Mono TMT offers unchanged at INR 49,100/t FoR Ahmedabad (Up by INR 200/t).
  • Century TMT is offering at INR 45,700/t exw Muzaffarnagar.
  • Polaad TMT is offering at INR 47,700/t exw Jalna (Up by INR 200/t).
  • Brahma TMT offers reported at INR 44,500/t exw Durgapur (Up by INR 400/t).
  • ARS TMT(Fe 550 D) offer reported at INR 51,100/t exw Chennai.
Wire rod and structure
  • Mid scale mills wire rod export offers hovering at $615/t exw Durgapur, equivalent to $640-645/t CPT Nepal, via road delivery.
  • Trade reference wire rod prices in Raipur rose by INR 200/t to INR 45,700-46,000/t exw, due to increase in base prices. However, assessment prices in Durgapur are stable at INR 45,500-45,700/t exw.
  • Raigarh based Singhal Steel concluded around 1,200 t deals of wire rod at INR 45,200/t exw.
  • Heavy structural steel, base price of 150 mm channel decreased by INR 300/t to INR 46,400/t in Raipur with firm trade discount of INR 600-900/t. Trade reference price of 200 mm angle is at INR 48,300-48,700/t exw.

Reference prices as on 26th Jul’21Reference prices as on 26th Jul'21

 

 

SteelMint’s billet index climbs INR 300/t as buying improves – 26 Jul

SteelMint’s daily billet index is assessed at INR 42,600/tonne (t) (+INR 300) exw-Raipur on 26 Jul’21.

About 8,920 t of transactions in steel billet were recorded by SteelMint today, which was up by over 140% as against 3,600 t on 24 Jul.

The index increased further following strong demand along with slight supply shortage of ready-to-deliver material. Hence, suppliers raised offers.

  • This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50% whereas other data sets are considered as T2 and given a weightage of the balance 50%.
  • Transactions (T1) – Thirteen trades were recorded in the 2:30 pm to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which four trades were recorded at INR 42,600/t, four deals at INR 42,500/t, two deals at INR 42,400/t, and one deal each at INR 42,750/t, INR 42,550/t and INR 42,300/t. The average price of these thirteen transactions was INR 42,584/t and given a 50% weightage in the final price calculation.
  • Other Price Indicators – bids/offers/indicative (T2) – Nine offers reported in the trading window and considered as T2 inputs. The average price of these nine was INR 42,586/t and given a 50% weightage in the final price calculation.

The final price for billet exw Raipur was at INR 42,585/t, rounded to INR 42,600/t exw.

Click for detailed methodology

T1: Trade
T2: Offer/Bid/Indicative

 

SteelMint: Raipur billet index witnesses 1% fall in trading volumes in Jun’21

SteelMint’s Raipur billet index witnessed total traded volumes at 89,220 t in Jun’21 – a marginal drop of a little over 1% compared with more than 94,000 t in May.

Billet prices & the broader market

Prices of induction furnace (IF) billets in Raipur had been volatile since the second week of May dropping from INR 44,000/t levels to a little above INR 40,000/t in end-May. Prices recovered to around INR 43,600/t in the first week of Jun, again to fall back to INR 42,600/t on 9 Jun.

However, the index moved up on active trading subsequently along with prevailing supply crunch in the spot market due to closed furnaces in Raigarh. Rising prices in the northern region, the Punjab market in particular, was a major factor behind the price rally.

The index remained supported, as producers associated with the Mini Steel Plant Association in Raipur, set prices higher even though buying remained weak. The subdued IF rebar market poured cold water on prices, as deals were reported mainly from plants based outside Raipur, such as Raigarh. Resellers were also active in that bear market.

Towards the end of Jun, SteelMint’s billet index hit rock bottom on weak buying sentiments. Prices were recorded at INR 40,600/t on 29 Jun. However, prices are on the rise with recovering sentiments in the IF rebar market through into Jul’21.

Therefore, despite the seasonal lull in the long steel market, enhanced capacity utilisation by secondary steel producers, stiff iron ore and pellet prices as well as rising sponge iron prices across regions are expected to keep secondary billet prices supported.

Billet index

SteelMint’s daily billet index records transactions and offers by both Raipur-based players as well as billet producers from other key markets such as Odisha, Punjab, Maharashtra, Gujarat and Hyderabad. It provides a precise and mathematically accurate assessment for traders through rigorous deal-by-deal monitoring of billet price movements.

 

Weekly round-up: Finished longs prices rise but rain plays spoilsport

Indian semi-finished steel market remains supported as prices gain further by up to INR 2,000/t, w-o-w. In the first half during the week good demand was noticed in the spot market, while trades were dull later on.

The sponge iron prices surged sharply in eastern region by INR 500-1,000/t, while billet prices rose majorly in the west & northern regions by INR 700-2,000/t, w-o-w.

India’s induction furnace rebar market, in this week witnessed an upward trend and in most of the major markets rebar steel prices increased by INR 300-1,400/t w-o-w, except in Chennai market of southern region, SteelMint assessment shows.

In addition, Domestic HRC prices continued to remain under pressure due to bearish market sentiments and sluggish sales. The prices for HRC 2.5 mm remained unchanged at INR 64,000-65,000/tonne (t) exy-Mumbai for the second consecutive week, as per SteelMint’s assessment.

Iron ore and pellet

  • Steel Authority of India Ltd (SAIL) conducted an auction on 20th July for 76,000 t of iron ore tailings (Fe 51.11% and Fe 52.5%) from its Dalli iron ore mines in Chhattisgarh. The tender failed to fetch any response.
  • NMDC, conducted an auction on 20 Jul’21 for 159,600 t of iron ore from the Bacheli mines in Chhattisgarh. The auction received active participation with the entire quantity getting booked, except the ROM lot of 16,800 t. Bids for DR-CLO moved up by around INR 1,560/t over the set base price.
  • NMDC, conducted an auction on 20 Jul’21 for 50,400 t of iron ore from the company’s Kirandul mines in Chhattisgarh, Entire quantity got booked with bids for Baila iron ore lump moving up by around INR 2,060/t over the set base price. Bids for fines moved up by around INR 620/t over the set base price.
  • Odisha Mining Corporation (OMC) held an auction for 689,000 t of iron ore fines on 22nd July. The auction received weak response, with only 117,000 t* getting booked at the base price.
  • SteelMint’s bi-weekly domestic pellet index, PELLEX, remains stable at INR 14,700/t DAP Raipur after a sharp decline of INR 850/t on 20 Jul’21.
  • SteelMint’s pellet export index (Fe 64%, 3% Al, FoB east coast) has recorded a drop of around $4/t w-o-w and currently stands at $217/t.
  • SteelMint’s weekly export index for low-grade Indian iron ore fines (Fe 57%) decreased by $4/t w-o-w to $80/t FoB east coast India.

Coal

  • Australian premium hard coking coal prices continued to increase over the past week, with several high-priced spot deals concluded in the ex-China markets.
  • Furthermore, a major European end-user issued a buy tender for Australian Peak Downs North branded premium mid-volatile matter, with an end-Aug’21 laycan.
  • Even as demand for Australian coking coal has been persistently high in most Asian markets excluding China, Indian demand for seaborne coking coal has lately remained largely subdued, primarily because both steel demand and metallurgical coke prices are declining due to the prevalence of the monsoon.
  • Meanwhile, ongoing safety checks and suspension of operations at various coal mines in China, coupled with the country’s ongoing import restrictions on Australian coals, have fuelled supply concerns among end-users seeking prompt delivery of premium grade coking coal.
  • Latest prices for the premium HCC grade are assessed at around $212.50/t FoB Australia, $315.00/t CNF China and $239.40/t CNF India.
  • South African RB2 portside prices remained largely unchanged this week, averaging INR 8,100/t ex-Gangavaram.
  • South African RB1 prices for Aug’21 have been assessed at $130.6/t. Operations at RBCT Port have been normalised post last week’s disruption but Transnet’s rail line has gone on maintenance till 26 Jul’21.

Ferrous scrap

  • India’s imported scrap market continued to remain dull for yet another week. No active bookings were recorded this week due to discrepancies in bids and offers. SteelMint’s assessment for UK/EU-origin shredded stood at $540/t CFR Nhava Sheva . Imported scrap offers into India remained slightly up this week with limited deals heard for West Africa-origin HMS, SteelMint learnt.
  • Indian mills are still struggling with lower finished steel sales in the domestic market. Mills are getting their scrap requirement fulfilled from the local market itself, which reduced imported scrap demand. Once mills resume their full production, demand for imported scrap willautomatically increase.

Ferro alloys

  • Silico manganese producers have been reducing prices w-o-w due to weak demand in the domestic market. SteelMint assessed the prices at INR 94,000/t exw-Raipur and INR 93,375/t exw-Durgapur for 60-14 grade.
  • SteelMint learnt, current market prices of ferro manganese for HC-70% grade are hovering at around INR 98,500-99,000/t for both Durgapur and Raipur. Due to dull demand for silico manganese, some producers shifted to ferro manganese production.
  • Ferro chrome prices spiked by INR 5,000/t to INR 111,300/t owing to increased inquiries from the Chinese market. The prices increased significantly in China throughout the week, triggering the rally in the Indian market.
  • Ferro silicon prices slumped this week to INR 133,000/t exw-Bhutan and to INR 135,500/t exw-Guwahati owing to low demand as buyers resisted purchasing at higher prices.

Semi-finished

The Indian semi-finished steel market remained supported as prices gained further by up to INR 2,000/t, w-o-w. Demand was subdued during the week as, at the beginning of the week, there was good demand in the spot market, while, in the later days, trade was dull.

Sponge iron prices increased sharply in the eastern region by INR 500-1,000/t, while billet prices rose sharply in the western and northern regions by INR 700-2,000/t, w-o-w.

Sources expect that semi-finished steel prices will remain supported due to balanced supply-demand as well as sufficient orders with manufacturers following optimistic global market trends.

  • Indian sponge iron export offers increased this week by $20/t to around $450/t, CPT Benapole, equivalent to $470/t, CFR Chittagong, Bangladesh. Demand was weak due to the ongoing Eid festival and lockdown in Bangladesh.
  • Steel grade pig iron prices picked up by INR 300-1,000/t across regions with major hikes seen in the northern and eastern regions by INR 700-1,000/t, followed by INR 300-500/t in the central region. Active demand as well as supply shortage in the spot market continued to support Indian pig iron prices.
  • Induction grade (IF) billet export offers increased by $10-15/t w-o-w with fresh offers at $560-565/t, exw-Durgapur (equivalent to $590/t CPT Nepal). About 15,000 t deals were confirmed this week.

Finished long

India’s finish long steel manufactured via the induction furnace(IF) route, this week, witnessed an upward trend in terms of prices. In most of the major markets, rebar steel prices increased by INR 300-1,400/t w-o-w, except in Chennai in the southern region, SteelMint assessment shows.

At the beginning of this week, improved demand and appropriate transactions for rebar steel in the spot market supported the manufacturers to keep prices high. However, limited buying interest and slow trade observed from middle of the week, owing to heavy rainfall in many cities and volatile semi-finished steel prices lowered trade activities which pushed the sellers to slightly adjust prices as per requirements of the market.

  • Trade reference induction grade rebar steel prices of 10-25 mm were assessed at INR 44,500-44,800/t exw-Raipur and at INR 46,900-47,300/t exw-Jalna.
  • Trade discounts given by Raipur-based heavy structural steel manufacturers stand at INR 700-1,000/t and trade reference prices for the 200-mm angles were at INR 48,500-48,900/t exw-Raipur.
  • Trade discounts given by Raipur based suppliers stood at INR 800-1,000/t and trade reference prices stood at INR 45,500-45,700/t exw Raipur & INR 45,500-45,700/t exw Durgapur, size 5.5 mm.

Finished flats

Domestic HRC trade prices continued to remain under pressure as market sentiments were bearish amid sluggish sales.

SteelMint’s prices for the benchmark 2.5 mm hot-rolled coils (HRC) remained unchanged at INR 64,000-65,000/tonne (t) exy-Mumbai for the second consecutive week. The prices mentioned above are exclusive of GST @18%.However, prices in the other key markets of Chennai and Faridabad saw a decline over the previous week.

  • Anticipation of rebates from mills to push buying- The downstream industries and end-users have turned observant and are postponing purchases on expectations that mills may provide rebates to whet buying interest. Market participants expect a rebate of INR 1,500-2,000/t from major steel mills in Aug’21.
  • Traders holding enough stocks- Trade participants told SteelMint that currently they are holding around 20-25 days’ inventory in hand and are less likely to procure fresh material at higher prices. Once this inventory starts easing, traders might resume buying.
  • Inactive buying in auto, consumer segments- End-user demand for auto and consumer durable goods had taken a hit in the early months of FY’22.
  • On the other hand, SteelMint expects that prices may remain range-bound.A few HRC export deals aggregating to 60,000 t were reported to be concluded to Vietnam at around $925-930/t CFR in the last week. Recently Indian mills booked 30,000 t HRC to South Korea at $950/t CFR basis for Aug-Sep shipments.

Reference prices as on 24th Jul’21 (Week 30)
Prices are exw & exclusive of GST

Indian export reference prices as on 24th Jul’21
Prices in $/t
Source: SteelMint Research

 

SteelMint’s billet index up INR 200/t as buying interest surges – 24 Jul

SteelMint’s daily billet index is assessed at INR 42,300/tonne (t) (+INR 200) exw-Raipur on 24 Jul’21.

About 3,600 t of transactions in steel billets were recorded by SteelMint today as against 3,520 t on 23 Jul.

The index rebounded on renewed buying in the spot market and sellers’ preference for not dealing at lower offers. Hence, buyers resumed purchases with expectations that prices wouldn’t decline further.

  • This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50% whereas other data sets are considered as T2 and given a weightage of the balance 50%.
  • Transactions (T1) – Five trades were recorded in the 11:30 am to 3:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. Out of which, two trades were recorded at INR 42,100/t, and one deal each at INR 42,450/t, INR 42,300/t, and INR 42,200/t. The average price of these five transactions was INR 42,253/t and given a 50% weightage in the final price calculation.
  • Other Price Indicators – bids/offers/indicative (T2) – Seven offers reported in the trading window and considered as T2 inputs. The average price of these seven was INR 42,300/t and given a 50% weightage in the final price calculation.

The final price for billet exw Raipur was at INR 42,276/t, rounded to INR 42,300/t exw.

Click for detailed methodology

T1: Trade
T2: Offer/Bid/Indicative