Indian DRI, billet, rebar update - 18 Aug

India's induction furnace (IF) steel market experienced moderate trading today. Offers varied in the range of INR 50-500/tonne (t) d-o-d.

Sponge iron offers increased by INR 50-100/t d-o-d. Prices increased the steepest, by INR 100/t, in Ramgarh, Raigarh and Jharsuguda markets. Only in Durgapur market where prices marginal fell by INR 50/t.

Billet tags varied by INR 50-500/t d-o-d, with the highest fall of INR 500/t in the Chennai market.

Rebar (Fe 500) prices increased by INR 200-300/t d-o-d across the locations except in Ahmedabad and Rourkela markets where prices inched down by INR 100/t and 200/t respectively.

Overall, limited trading activities were observed today. Buyers mostly restricted purchases to immediate needs and avoided bulk bookings. Sellers adjusted trade discounts, depending upon payment and delivery terms, to encourage buyer interest. Although, active movement were noticed in later half of the day in Central region (Raipur market) in terms of sales. Given the current market conditions, prices are likely to remain rangebound.

The conversion spread from sponge iron (PDRI) to billets for standalone induction furnaces in the Raipur cluster was assessed at INR 13,500/t.

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BigMint's price assessment (region-wise)