India: Semi Finish price Volatility Continues, South market Remain Quite

Semi finish limited production continue, market participant believe price to trade in range bound. Major week highlights are:

• Maharashtra Mill received first hiked electricity bill last week. Manufacturer confirm price have increased by Rs 1.5/unit as they receive bill amount higher by 20-25%. Production cost has increased by Rs 1,500/MT.  However Mumbai MS Ingot price last week remain subdued due to ongoing Ganesh Chaturthi festival. Price weaken by Rs 400/MT but M-o-M price increase by Rs 1,300/MT due to hike electricity tariff.
• North India production continue to remain at 60% due to power shortage (electricity cut for 6-8 hrs prevailing) in Punjab and U.P. Curfew in Muzzafarnagar due to communal riots also hamper the industry production. Price weaken by Rs 100-200/MT
• East India price remain firm due to limited production and demand from North India. Prices increase marginally by Rs 100/MT
• Central India price remain highly volatile. Raipur MS Ingot price weaken by Rs 650/MT whereas Raigarh that supply to North India only reduced price by Rs 200/MT week on week.
• Sponge price pan India remain firm due to strong shortage of melting scrap felt by manufacturer. However W-o-W Raipur price weaken by Rs 200-300/MT with falling price of MS Ingot.
• Re-bar price pan India remain strong due to low production. Price increase by 300-400/MT. South India remain quite due to onam festival in the region.