Indian semi finished manufacturers continued to be under pressure during this week. Sponge prices declined steeply by INR 600-800/MT and billet by INR 300-1,250/MT due to limited buyers and dwindling demand.
On the other side, Pig iron prices rose steeply by INR 200-800/MT as the primary producer, NINL opened its offers with rise in Pig iron prices. However, market participants anticipate this price rise will not sustain for long duration.
Week 5 major points
1. Current 78-80 FeM sponge iron prices prevailing in Durgapur at INR 11,000/MT (-600), Rourkela at INR 10,050/MT (-650), Raipur at INR 11,500/MT (-800) and Bellary at INR 11,000/MT (-600).
2. Meanwhile, P-DRI prices hovered within INR 9,900-11,900/MT in the market.
3. Billet price movements are INR 19,350/MT (-1,250) ex-Durgapur, INR 18,900/MT (-1,250) ex-Rourkela, INR 19,450/MT (-1,150) ex-Raipur, INR 21,650/MT (-1,100) ex-Mumbai and INR 21,200/MT (-300) ex-Hyderabad.
4. Imported scrap offers were on lower side this week; HMS offers were in the range of USD 185-195/MT and Shredded scrap within USD 200-210/MT, CFR India.
5. Odisha government had stopped sales and dispatches of iron ore from Serajuddin’s Balda iron ore mines for allegedly producing less than the fixed limit.
Week 6 major prospects
1. Prices already at decade low levels. Manufacturer may start production cut to sustain price and reduce selling pressure.
2. Odisha based iron ore miners are likely to open their offers in coming week.
3. Viewing resistance in buying, it is expected that imported scrap offers may fall in days to come.
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