MS Ingot prices may remain range bound this week. Sponge price may witness a gain of Rs 200-300/MT due to shortage of Scrap and Iron ore. Major concern this week that will impact the prices:
1) Odisha Iron ore Mines closure issue due to stamp duty, that will impact the supply of Iron ore. Its being learned in anticipation of mines closure Pellet manufacturer in Odisha has hold the sale of pellet till the issue to get resolve. Similarly sales in Raipur region is also kept on hold. Last sales in Raipur were at Rs 7300-7500/MT .
2) Dollar appreciation against Rupee, that will impact the scrap import in western India. Semi Finish prices expected to move sharply if it continues. However demand of Finish is still in hold. June'13 scrap import down by 20% M-o-M expected to continue in July'13.
3) Eastern India continue to supply semi finish to North India in a discounted price of Rs 200-300/MT as compare to local manufacturer's price. However demand of finish long in C.G from M.P. is witnessing low that continue to build pressure in Rebar prices. Raipur Re-bar price today open down by Rs 200-300/MT as 12MM offer at Rs 30600-800/MT, offer to remain same this week.
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