In week 3, Indian semis market showed mixed response as sponge prices declined by INR 100-200/MT, however, billet prices either remained firm or uptick marginally by INR 200-300/MT.
Meanwhile, Pig iron offers were under pressure and decreased by INR 200-300/MT in Durgapur. Contrastingly, the primary manufacturer, NINL raised offers by INR 400-500/MT this week.
Week 3 key dynamics
1. Current 78-80 FeM sponge iron prices prevailing in Durgapur at INR 12,000/MT (-300), Rourkela at INR 11,300/MT (-200), Raipur at INR 13,050/MT (-150) and Bellary at INR 12,150/MT (-100).
2. Meanwhile, P-DRI prices hovered in the range of INR 10,850-11,800/MT in the market.
3. Billet price movements are INR 20,900/MT (-150) ex-Durgapur, INR 20,550/MT (-50) ex-Rourkela, INR 21,350/MT (+250) ex-Raipur, INR 22,700/MT (+200) ex-Mumbai and INR 21,800/MT (-1,050) ex-Chennai.
4. Odisha merchant iron ore miners continued to hold offers. NMDC had also rolled over iron ore prices this week.
5. Imported scrap offers from Middle East rolled over by USD 5/MT to USD 210/MT, CFR India due to slight price corrections in domestic market.
Week 4 key prospects
1. Semis prices are likely to be volatile, looking at stability in raw material prices (iron ore and scrap).
2. As per market participants, there are less chances of revision in Odisha iron ore prices in immediate term, following stability in sponge market.
3. Indian buyers are cautious and expecting that imported scrap offers will remain firm.
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