Indian Semi Finish Prices Hit 5-Year Low

Domestic semis prices have hit 5-year low level; billet at INR 22,250/MT and sponge iron at INR 14,550/MT in Raipur.

Semi finish market has been witnessing downtrend movement since few years. In the month of Oct’15, prices have hit 5-year low levels on the backdrop of prolong subdued demand from semis and finish steel market.

MS billet prices in Raipur have hit the lowest level of INR 22,250/MT, which were last seen in Sept’10 at INR 22,500/MT. While, the highest level was witnessed in Aug’11 at INR 31,100/MT.

In context to sponge iron, prices of 80 FeM C-DRI in Raipur have hit rock bottom at INR 14,550/MT, which were last seen at INR 14,500/MT in Jul’15. While, the highest level was seen at INR 25,100/MT in Mar’12.

Continuous declining global prices of iron ore, coal and scrap along with sluggish demand in global and domestic markets are the prime factors of sharp price corrections.

Note: The analysis is done on the basis of data maintained by SteelMint since Sept’10.

Trade-wise

1. Indian MS billet prices are hovering in the range of INR 21,500-23,000/MT (USD 325-345/MT).
2. Chinese billet offers are assessed at USD 275/MT, FoB India; remained stable this week.
3. RINL has floated an export tender for 90,000 MT billet with deadline on 26 Oct’15.