At the end of Week 39, semi finish prices declined steeply by INR 400-800/MT owing to subdued demand from finish steel market. Sponge iron prices slumped by INR 400-850/MT and MS billet prices by INR 200-800/MT.
However, Pig iron prices surged by INR 200-500/MT this week post a primary manufacturer (NINL) raised its offers in domestic market.
Week 39 Sentiments
1. Sponge iron price movement across major markets were Durgapur at INR 14,700/MT (78 FeM; -400), Rourkela at INR 14,250/MT (78 FeM; -400), Raipur at INR 15,150/MT (80 FeM; -850) and Bellary at INR 13,600/MT (78 FeM; -500).
2. Billet was offered in Durgapur at INR 23,550/MT (-750), Rourkela at INR 22,800/MT (-350), Raipur at INR 23,350/MT (-550), Mumbai at INR 24,000/MT (-800), Chennai at INR 23,850/MT (-200) and Hyderabad at INR 24,000/MT (-500).
3. Increased supply in global market led to decline in imported scrap prices by USD 5/MT.
4. Post price corrections by Odisha based miners last week, iron ore prices this week remained almost stable.
5. Pellet prices in eastern market fell by INR 100-500/MT, but remained stable in central India.
Week 40 Prospects
1. Semi finish prices likely to fluctuate in the range of INR 300-600/MT; no major changes are expected.
2. Pellet manufacturers are likely to remain under pressure as demand is not good owing to cheaper iron ore lumps prices.
3. Lull buying activities in Turkey and cheaper Chinese billet offers will further pressuzire imported scrap offers in global market.
4. Pig iron prices are expected to rise further in coming week.
Leave a Reply