Indian semi finish prices corrected marginally in week 31 against heavy price fall in upto INR 1,400/MT week 30. Limited correctIon in prices has been seen due to production cut by few manufacturers in major markets as they are unable to cope up with their expenses at low margins. Amidst production cut, billet prices fell upto by INR 500/MT, while sponge prices reduced by INR 200-300/MT in central and eastern markets. However,surprisingly high fall has been recorded in Chennai (South) market by INR 1,400/MT due to poor demand as well as price reduction during previous week seen in Raipur and other states.
Week 31 Key Points
1. C-DRI prices are hovering in the range of INR 13,400-17,400/MT. Current offers in Bellary are assessed at INR 15,000/MT (82+ FeM), Rourkela at INR 13,700/MT (80 FeM) and Raipur at INR 14,500/MT (80 FeM).
2. MS billet prices were assessed in the range of INR 21,400-25,400/MT.
3.Domestic iron ore prices remained stable. In addition, Chinese iron ore (Fe 63%) prices closed at USD 53/MT, CFR China following increase in rebar prices.
4. Imported scrap offers to India fall by USD 10/MT on low buying interest and falling global prices.
5. Out of 14 Billet units, 4 are closed in Jalna,while the rest 60% units have opted for production during night due to poor demand.
Week 32 Outlook
1. As per sources, prices of semi finish will fall further, with an expectation of fall in iron ore as well sponge prices.
2. NMDC (C.G) is likely to reduce iron ore prices for August deliveries, prices likely to be declared in coming week. In the same line, Odisha miners may further lower down iron ore prices.
3.An expected fall in Pig iron prices in Central India will pressurize sponge iron prices.
4.Market participants are hopeful about buying interests in coming weeks as they believe manufacturers are out of stock and have no option except placing orders. Stability in global scrap price (offers at Turkey) has also brought some confidence in the market.
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