Indian semis market in week 33 ended with a slight downfall in prices. MS billet prices across major markets fell by INR 300-500/MT owing to poor sales. While, sponge offers remained almost stable compared to last week. However, south India based sponge makers reduced prices by INR 500/MT to match Chhattisgarh and Odisha offers.
Semi finish in Rourkela and Durgapur is still cheaper than prices in Raipur market. This in turn has shifted buying interest of north India makers to Durgapur and Rourkela.
Pig iron prices in central and southern markets fell marginally by INR 200-300/MT in the starting of this week. However in other regions, manufacturers had kept offers unchanged.
Week 33 Highlights
1. Sponge iron price movement across major markets were Durgapur at INR 14,100/MT (78 FeM; 0), Rourkela at INR 13,400/MT (78 FeM; + 50), Raipur at INR 15,200/MT (80 FeM; – 100) and Bellary INR 13,700/MT (78 FeM; – 200).
2. Billet prices were assessed in Durgapur at INR 21,900/MT (- 250), Rourkela INR 21,600/MT (0), Raipur INR 22,200/MT (+ 500), Mumbai INR 24,500/MT (- 200) and Chennai INR 23,900/MT (- 100).
3. Production in secondary market for semi finish and finished long products declined continuously.
4. Imported scrap offers increased by USD 5-10/MT.
5. Domestic iron ore prices fell by upto INR 400/MT.
Week 34 Outlook
1. Semi finish prices are likely to be under pressure owing to fall in iron ore prices.
2. Although, inquiries has surged in scrap market amidst limited stock available with manufacturers, depreciation in Indian as well as Chinese currency may resist buyers from buying.
3. It is anticipated that following price correction by Serajuddin, Essel Mining and KJS Ahluwalia, other iron ore miners may reduce their offers.
4. NINL’s export tender for 110,000 MT bloom and billet is to close on 24 Aug’15
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