Week 38 concluded with volatility in Indian semis market. Across major markets, sponge iron prices fluctuated by INR 100-300/MT and MS billet prices saw major changes by INR 400-600/MT.
However, pig iron prices rose INR 300-500/MT this week looking at price rise of INR 600/MT by a primary manufacturer (NINL) during last week.
Week 38 Key Dynamics
1. Sponge iron price movement across major markets were Durgapur at INR 15,100/MT (78 FeM; -100), Rourkela at INR 14,600/MT (78 FeM; +300), Raipur at INR 15,900/MT (80 FeM; 0), Bellary at INR 14,100/MT (78 FeM; +100) and Hyderabad at INR 15,750/MT (82+ FeM;+50).
2. P-DRI prices hovered in the range of INR 13,600-14,600/MT in domestic market.
3. Billet prices were assessed in Durgapur at INR 24,300/MT (0), Rourkela at INR 23,150/MT (-250), Raipur at INR 23,900/MT (-100), Mumbai at INR 24800/MT (-200), Chennai at INR 24,050/MT (+150) and Hyderabad at INR 24,500/MT (0).
4. Imported scrap prices fell by USD 5-10/MT amidst increased supply in global market and cheaper Chinese billet offers.
5. Odisha based miners continued to decline iron ore prices and it is expected that other few miners may declare prices next week.
Week 39 Outlook
1. Semi finish market is likely to remain volatile due to lull trade activities in festive season this week.
2. As DMF has been notified this week, it is anticipated that iron ore mining cost will increase by INR 50-100/MT.
3. Imported scrap prices are expected to fall further because of lull buying activities in Turkey.
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