Week 49 concluded with an improving note as prices have started to gain stability and also rose marginally in few major markets. Anticipation of safeguard duty imposition and firm raw material (imported scrap) prices have somewhat supported semis market.
Sponge prices rose by INR 200-300/MT in domestic market. However, south India market, Bellary witnessed a fall of INR 350/MT for 78 FeM C-DRI in a week. Meanwhile, billet prices in Durgapur, Mumbai and Hyderabad increased by INR 300/MT and other market remained stable.
On the flip side, Pig iron makers reduced prices by INR 300-500/MT owing to fear of selling in domestic market.
Week 49 highlights
1. 78-80 FeM sponge iron prices assessed in Durgapur at INR 11,600/MT (+200), Rourkela at INR 10,750/MT (-50), Raipur at INR 12,300/MT (-150) and Bellary INR 11,800/MT (-350).
2. P-DRI prices hovered in the range of INR 10,600-12,500/MT at pan India.
3. Billet price movement in Durgapur at INR 19,300/MT (+300), Rourkela at INR 18,500/MT (+50), Raipur at INR 19,450/MT (-50), Mumbai at INR 21,900/MT (+300), Chennai at INR 20,000/MT (0) and Hyderabad at INR 21,800/MT (+300).
4. NMDC reduced lump prices by INR 300-360/MT and ROM by INR 260/MT, but kept fines offers unchanged. Prior to this, the miner had made a surprise price cut on 26 Nov’15. Odisha miners also followed suit and reduced lump prices by INR 150-250/MT and kept fines stable.
5. Global iron ore prices fell below USD 40/MT.
6. Imported scrap market remained stable amid better demand in global market. Shredded scrap offers were within USD 205-210/MT, CFR India. However, there was no buying in Indian scrap market.
Week 49 outlook
1. Semi finish market may gain some stability and prices may remain range-bound.
2. Fines prices are likely to reduce in Odisha in near-term.
3. Good demand and winter season are likely to maintain stability in imported scrap market.
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