India: Ms Ingot Prices to remain Firm in near term – Manufacturer

SteelMint learned from North India manufacturer that MS Ingot prices seem to remain stable this week after remaining volatile last week. Major reasons cited were shortage of Scrap, low production and good finish sales.

Sponge Iron: Shortage of Scrap in Northern & Western part of the country has forced manufacturers to shift to Sponge iron. Jalna based manufacturer says, “Imported Scrap offers at USD 370/MT HMS 80:20 CFR Mumbai is not feasible reason for which we have purchased Sponge iron. Today, we have purchased 600 MT (80 FeM) from Raipur at around INR 20,900/MT (50:50)”. Prices moved up by INR 300-400/MT in this week against previous week. Due to high prices, manufacturers (Ingot) based in West India have shifted to Sponge iron, while manufacturers based in North India are still struggling for Scrap, which has made them to lower their production.

 
However, demand in South India remains sluggish since low production in Hyderabad has put a pressure on prices in Bellary. Sponge iron (75 FeM) remains at same level of INR 19,500/MT in Bellary, while Sponge Pellet is offered at around INR 18,300/MT (75 FeM).

 
Re-bar: TMT demand is robust across India owing to low inventory levels. There is pressure on retailers from Re-bar manufacturer to meet the yearly target and better demand from project sales. Offers remain high by around INR 300-500/MT W-o-W in the major market.