Indian semi finished manufacturers were under pressure during this week. Sponge prices declined steeply by INR 100-500/MT and billet by INR 400-1,000/MT due to mismatched sentiments between sellers (more) and buyer (less).
On the flip side, Pig iron prices remained stable owing to limited supply in market amid increase in captive consumption by few manufacturers or production cut by others.
Week 4 highlights
1. Current 78-80 FeM sponge iron prices prevailing in Durgapur at INR 11,600/MT (-400), Rourkela at INR 10,700/MT (-600), Raipur at INR 12,500/MT (-550) and Bellary at INR 11,600/MT (-550).
2. Meanwhile, P-DRI prices hovered in the range of INR 10,600-12,000/MT in the market.
3. Billet price movements are INR 20,600/MT (-300) ex-Durgapur, INR 20,150/MT (-400) ex-Rourkela, INR 20,750/MT (-600) ex-Raipur, INR 22,750/MT (+50) ex-Mumbai and INR 21,800/MT (-1,000) ex-Chennai.
4. Imported scrap offers remained stable this week. However, there were limited buying inquiries in the market.
5. Offers for imported South African lump to India moved up to USD 52/MT, CFR Kandla for Feb’16 loadings due to increase in spot iron ore prices.
Week 5 outlook
1. Semis prices are likely to remain under pressure on account of surge in inventory and subdued demand.
2. Viewing volatility in prices, Indian scrap importers may remain cautious and expect that there will no major price fluctuations in coming days.
3. Looking at descent bookings for lump, Odisha merchant miners had maintained offers. Sources say that there are less chances of change in prices in coming week.
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