Daily Update: Indian Sponge & Billet Market
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Domestic billet & sponge offers witness a minimal decline by INR 100-300/MT owing to softening trade activities.
SteelMint’s price assessments for induction furnaces billet size 125x125 mm are reported at INR 26,000-28,500/MT (USD 406-446) and Sponge C-DRI (FeM 78-80) at INR 17,300-18,300/MT (USD 270-286). The all prices are ex-plant & excluding GST.
Key Updates
1. Central India based Integrated plants have reduced Sponge P-DRI offers by INR 200/MT to INR 16,800-16,900/MT. Sponge DR-CLO grade offers also lowered by INR 100-200/MT to INR 18,900-19,000/MT. Both prices ex-plant & excluding GST.
2. In West Bengal - Durgapur based big manufacturers have further reduced their offers by INR 100-200/MT each; P-DRI at INR 16,500/MT & C-DRI at INR 17,500/MT ex-works.
3. Jharsugda, Odisha based manufacturers sold FeM 79-80 P-DRI at INR 16,300/MT FoR Raigarh (Excl. GST).
4. Odisha based medium size sponge manufacturers reported firm offers; FeM 80 C-DRI (70:30 mix material) at INR 17,200-17,400/MT ex-plant & excluding GST.
5. Sunvik Steels in Karnataka kept sponge prices stable; offering FeM 80 & 82 C-DRI are INR 18,100/MT and INR 18,500/MT ex-plant.
6. According to purchase source in North-east India, recent rake movement have resumed from Odisha to North-east region (Assam) which was halted since more than a month duration. Hence, there are anticipations that demand to boost of Odisha made sponge iron/billet.
7. Furnace operators in West & Southern India are continue to remain under pressure over high input cost as prices of scrap are remain high/stable, while billet prices falling continuously (down by INR 500-1,200/MT, W-o-W).
8. IISCO (SAIL's unit) heard to have booked a rake for Steel grade pig iron around INR 24,200/MT (ex-plant) for Howrah.
9. Raipur based IF/EAF are largely procuring CI mold scrap rather than high cost Pig iron. The offers are reported - mold scrap at INR 22,800-23,000/MT FoR & Pig iron at INR 25,700-26,000/MT ex-plant; both are excluding of GST.
10. Durgapur, East India based private pig iron manufacturers have reduced offers by INR 300-500/MT (USD 4-8). Current offers are at INR 24,500-24,700/MT ex-plant.
11. NMDC rescheduled its auction from 12th Sep’17 to 14th Sep’17 with the revised quantity of 168,000 MT Iron Ore from 178,000 MT Iron Ore.
Reference prices as on 13 September 2017
| Particular/Delivery | Size, Grade, Origin | Prices | Change | 1W | 1M | |
| C-DRI | Ex-Durgapur | Mix, FeM 78%, +/-1 | 17,500 | - 150 | 18,600 | 18,400 |
| Ex-Rourkela | Mix, FeM 80%, +/-1 | 17,300 | - 200 | 18,000 | 17,700 | |
| Ex-Raipur | Mix, FeM 80%, +/-1 | 18,300 | - 100 | 19,000 | 19,200 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 17,700 | 0 | 18,000 | 17,600 | |
| P-DRI | Ex-Durgapur | Lumps, FeM 78%, +/-1 | 16,500 | - 200 | 17,700 | 17,400 |
| Ex-Rourkela | Lumps, FeM 78%, +/-1 | 16,000 | - 400 | 16,900 | NA | |
| Ex-Raipur | Lumps, FeM 80%, +/-1 | 16,900 | - 100 | 17,650 | 18,100 | |
| Ex-Bellary | Lumps, FeM 80%, +/-1 | 17,400 | 0 | 17,500 | 17,500 | |
| Ingot | Ex-Mandi Gobindgarh | 3.5 x 4.5 Inch, IS 2830 | 28,600 | - 50 | 29,350 | 29,800 |
| Ex-Durgapur | 3.5 x 4.5 Inch, IS 2830 | 26,000 | 0 | 26,850 | 27,000 | |
| Ex-Rourkela | 3.5 x 4.5 Inch, IS 2830 | 25,500 | - 300 | 26,100 | 26,500 | |
| Ex-Raipur | 3.5 x 4.5 Inch, IS 2830 | 26,200 | - 100 | 26,900 | 27,000 | |
| Ex-Mumbai | 3.5 x 4.5 Inch, IS 2830 | 27,300 | 0 | 27,800 | 28,700 | |
| Ex-Chennai | 3.5 x 4.5 Inch, IS 2830 | 28,000 | 0 | 28,000 | 28,500 | |
| Billet | Ex-Mandi Gobindgarh | 125x125 mm, IS 2831 | 29,000 | - 100 | 29,800 | 30,000 |
| Ex-Durgapur | 125x125 mm, IS 2831 | 26,400 | 0 | 27,250 | 27,500 | |
| Ex-Rourkela | 125x125 mm, IS 2831 | 26,000 | - 200 | 26,500 | 26,800 | |
| Ex-Raipur | 125x125 mm, IS 2831 | 26,750 | - 50 | 27,500 | 27,450 | |
| Ex-Mumbai | 125x125 mm, IS 2831 | 27,500 | 0 | 28,000 | 28,900 | |
| Ex-Chennai | 125x125 mm, IS 2831 | 28,500 | 0 | 28,500 | 29,000 | |
| TMT | Ex-Delhi/NCR | 12MM | 32,000 | 0 | 32,100 | 33,600 |
| Ex-Durgapur | 12MM | 29,500 | 0 | 30,000 | 29,700 | |
| Ex-Raipur | 12MM | 29,600 | 0 | 30,300 | 29,600 | |
| Ex-Mumbai | 12MM | 31,100 | 0 | 31,000 | 32,200 | |
| Ex-Chennai | 12MM | 32,250 | - 250 | 32,500 | 32,500 |
Basic prices in INR/MT & excluding of GST @ 18%
Source: SteelMint Research
