Daily Update: Indian Sponge & Billet Prices Decline on Demand Concern

Participants reported less inquiries from the re-rollers end resulted gradual decline in Billet & Sponge iron prices by INR 100-300/MT day on day in major markets.

In line Finished products, Rebar prices slip by INR 200/MT. Meanwhile in structural steel, the mills have keep prices unaltered, however trade discounts have further raised in Wire rod & Structures by INR 100-200/MT.

SteelMint's latest price assessment for induction furnaces billet in Indian market stood at INR 31,200-34,800/MT (USD 450-501) ex-plant.

Further, the coal based sponge (78-80 FeM) C-DRI price assessment was at INR 18,900-20,000/MT (USD 273-288); prices are ex-plant & excluding GST.

Rupee & BSE Sensex

-- On 6th May 2019 (Friday) INR to USD exchange rate stood at INR 69.39

-- ICEX (Indian Commodity Exchange Ltd) Jun'19 contract for STEELLONG today open at INR 34,140/MT & last traded (IST 18:21) at INR 34,110/MT.

-- BSE Sensex closed at 38,600(-362) on Monday, as against last day (Friday) at 38,963(-18).

-- NSE Nifty50 index was closed today at 11,598(-114).

Trade updates - Raw materials

-- South India (Karnataka) based - NMDC Donimalai Pellet Plant has reduced pellet offer by INR 370/MT to INR 7,030/MT (FoT basis) as against last offer at INR 7,400/MT (FoT basis).

-- Indian metallurgical coke imports have shown tremendous growth of 64.8% to 0.42 MnT in Apr’19 as compared to 0.25 MnT in Mar’19, as per the vessel lineup data compiled by CoalMint Research.

-- According to vessel line up data maintained with SteelMint, India imported 53,860 MT pellets from Iran in Apr'19 compared to nil imports in last month. Since the data maintained with SteelMint, it’s for the first time that India has imported pellets from Iran.

-- NMDC, India's largest iron ore mine has recorded production at 32.47 MnT in FY19, down by 8.7% as against 35.6% during FY18.

-- Indian Silico Manganese prices under pressure due to the sluggish steel market. Prices for 60-14 grade is hovering at INR 66,000-66,500/MT Ex-Raipur and Ex-Durgapur.

Semi finished

-- Rashtriya Ispat Nigam Limited (RINL)- a state-owned steel maker under the Ministry of Steel, has invited a tender for export of 30,000 MT Billets and 30,000 MT Bloom. The bid due date is 13th May‘19 & delivery scheduled by 15 Jun’19 on FoB basis.

-- Odisha, Rourkela based 100-300 TPD Sponge producers reported heathly bookings, hence not looking to decline in prices. Deals are mostly reported for North-east regions and price range at INR 18,900-19,000/MT (ex-plant) for 80 FeM Sponge C-DRI mix material.

-- As per sponge iron suppliers in Raipur, no major inquiries for Sponge P-DRI at INR 19,000-19,100/MT, however small parcels have been sold them at INR 18,800-18,900/MT ex-plant.

-- SteelMint in conversation with Durgapur based participants learned that, selling pressure mount with the major sponge producers, thus willing for bulk bookings on additional trade discounts. Price range for P-DRI was at INR 17,900-18,100/MT FoR Durgapur.

-- Pig iron producers in eastern region - Durgapur, Jharkhand & Odisha reported poor inquiries, however offers are unaltered today as against last trades on 4th May'19.

Wire rod & Pipe

-- Trade discounts in Raipur Wire rod has increased today by INR 200/MT to INR 1,200-1,400/MT, meanwhile basic prices for 5.5mm unchanged at INR 38,300/MT ex-Raipur & INR 37,200-38,000/MT ex-Durgapur.

-- Rashmi Metaliks in Kharagpur(Durgapur) heard to have offered 5.5mm Wire rod at INR 37,400-37,500/MT ex-plant.

-- Hyderabad (South India) based manufacturer Mahalakshmi Profiles Pvt Ltd (MPL) has raised ERW Pipe prices by INR 200/MT to INR 40,100/MT ex-plant. (basic & excluding GST).