Delay in MIP’s decision by Indian government had driven down semis market in week 2. Prices at pan India declined steeply by INR 500-2,000/MT in a week. Sponge iron offers slumped by INR 500-1,150/MT and billet at INR 1,050-1,900/MT.
On the flip side, Pig iron prices rose by INR 500/MT owing to improvement in buying activities and price rise by primary Pig iron makers.
Week 2 highlights
1. 78-80 FeM sponge iron prices as on 9 Jan’16 assessed in Durgapur at INR 12,300/MT (-1,150), Rourkela at INR 11,600/MT (-700), Raipur at INR 13,150/MT (-1,050) and Bellary at INR 12,300/MT (-500).
2. Meanwhile, P-DRI prices hovered in the range of INR 11,050-13,000/MT in the market.
3. Billet price in Durgapur at INR 21,150/MT (-1,350), Rourkela at INR 20,600/MT (-1,050), Raipur at INR 21,200/MT (-1,800), Mumbai at INR 22,500/MT (-1,900) and Hyderabad at INR 23,000/MT (-1,500) as on 9 Jan’16.
4. NMDC’s iron ore price revision postponed amid defer in appointment of new CMD.
5. Imported scrap offers from Middle East inched up by around USD 5-10/MT to USD 215/MT, CFR India. In addition, US/European scrap participants were on holidays; led to closing of sales.
Week 3 outlook
1. Semi finish prices may remain under pressure in near term amid subdued demand.
2. Amid better demand in global and domestic markets, imported scrap prices are expected to surge in coming days.
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