Domestic semi finish market witnessed a sharp price corrections in week 43. Central India based sponge and billet makers remained under pressure to reduce their offers by INR 1,000-1,300/MT W-o-W. While, prices in other markets declined in the range of INR 200-300/MT. However, trade activities in West Bengal were almost closed due to Durga puja.
Meanwhile, pig iron market remained almost stable with minor corrections of INR 200/MT in central India (Raipur and Raigarh).
Sluggish demand from finish long steel market and ongoing festive season have led to price corrections.
Highlights in Week 43
1. C-DRI prices in Rourkela were assessed at INR 12,300/MT (78 FeM; -300), Raipur at INR 13,250/MT (80 FeM; -1,000) and Bellary at INR 13,100/MT (78 FeM; -350).
2. P-DRI prices across major markets are in the range of INR 11,800-13,600/MT.
3. Billet offers are assessed in Rourkela at INR 20,750/MT (-450), Raipur at INR 20,850/MT (-1,300), Mumbai at INR 22,700/MT (-300), Chennai at INR 22,650/MT (-450) and Hyderabad at INR 22,700/MT (-300).
4. Iron ore prices remained stable. While, pellet prices declined by upto INR 200/MT especially in western India due to availability of cheaper imported iron ore.
5. Imported scrap prices found support, however, there were still inquiries in the market.
Outlook in Week 44
1. Semis prices may gain stability at current levels as prices touched an all time low. Moreover, looking at raw material prices, there is less probability of any further fall in prices.
2. Declining global iron ore prices and lump premium will make imported ore further cost effective.
3. Imported scrap prices are likely to remain firm at current levels.
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