MS Ingot prices remained firm last week and market participants expect it to remain same this week as well. Meanwhile concern for demand of low finish and increasing sponge price continues in the market. The week's major highlights are:
- Mandi Gobindgarh: MS Ingot prices remain firm with major concern being the low Scrap availability and high Sponge price. Sponge's supply from Raipur/Raigarh is limited. Although major plants have shifted their production time to night as the low power tariff brings down the production cost on one hand while reducing production on the other hand.
- Raipur: Sponge Iron prices continue to trade higher over limited production because of Iron ore shortage and demand from North and Western India (Maharashtra). Sponge iron price increased by INR 300-500/MT W-o-W. Market participants believe that, this week Iron ore Pellet availability will increase and closed plants will resume production. It is also expected that Iron ore Pellet prices might get corrected by INR 300-400/MT.
- Raigarh: Presently Raigarh mill is buying sponge from Rourkela as the local manufacturers shifted to Jindal conversion. Rourkela 78FeM is trading at INR 19,800/MT FoR while Sponge pellet 78FeM is trading at INR 19,200/MT.
- Durgapur: Present monsoon weather has increased the cost of Sponge Iron as market offers increase by INR 300/MT while Billet and Ingot prices are quoting higher by INR 200/MT. Export of Billet is limited whereas supply to North India has improved.
- Re-bar: Re-bar's demand in central India improved as M.P border opened. However the demand is lower than what was expected.. Maharashtra, the biggest producer of Finish long remain subdued as Re-bar prices remain volatile by INR 200/MT +/- W-o-W.
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