Market participants believe that in coming days, prices may remain at same level or will increase by INR 300-500/MT with less possibility of offers to decline. This anticipation is due to few factors such as low production, rising raw material prices and expectation of hike in power charges across India.
Trade volume of semi finish & finish long across the country remains dull as buyers are cautious and buying the material hand to mouth. However, shortage of raw material (Scrap & Sponge) has remained pan India and this is building pressure on semi finish & finish steel manufacturers to cut their production.
Brokers of Sponge iron based in Raipur, Raigarh & Rourkela have commented, “Sponge manufacturers are reluctant to reduce offers, we can say there is no Sponge iron seller at low price.”
SteelMint anticipates prices likely to increase or remain range-bound owing to following reasons:
- Limited availability and increasing Iron ore prices by INR 300-500/MT M-o-M) by Odisha miners
- Hike in Pellet prices by INR 900-1,800/MT W-o-W in central & eastern India
- High Pig iron prices by INR 1,000-1,800/MT pan India in a month’s time is increasing the production cost of semi finish & finish Long steel products
- Imported Scrap is currently feasible for Indian buyers owing to appreciation of Indian currency and high prices of Sponge iron. Current offers for HMS 1&2are at around USD 395-400/MT (INR 23,100-23,400/MT) landed at CFR Mumbai port
- High power cost is expected to be announce soon in first week of Jun’14
Leave a Reply