Week 5 concluded with a recovery note as semi finish prices across major markets increased steeply by INR 400-2,500/MT. Amid imposition of MIP on certain steel products, billet prices surged by INR 400-2,100/MT and sponge by INR 800-2,500/MT this week.
Central Indian market reported major hike in both sponge (+2,850; 82 FeM) and billet (+1,900), followed by eastern market, especially Durgapur.
On the flip side, primary Pig iron manufacturers like SAIL and NINL had reduced its prices owing to uncertainty in market and low demand.
Week 5 dynamics
1. Current 78-80 FeM sponge iron prices prevailing in Durgapur at INR 13,500/MT (+2,500), Rourkela at INR 11,550/MT (+1,500), Raipur at INR 14,900/MT (+2,850; 82+ FeM) and Bellary at INR 11,850/MT (+850).
2. Meanwhile, P-DRI prices hovered in the range of INR 11,800-13,000/MT in the market.
3. Billet price movements are INR 21,000/MT (+1,400) ex-Durgapur, INR 19,500/MT (+400) ex-Rourkela, INR 21,600/MT (+2,100) ex-Raipur, INR 22,800/MT (+950) ex-Mumbai and INR 23,000/MT (+1,800) ex-Hyderabad.
4. Imported scrap offers were on lower side; assessed HMS 80:20 at USD 180-185/MT and shredded at USD 195-200/MT, CFR India.
5. NMDC kept iron ore prices unchanged for Feb’16 deliveries.
6. Imported South African lump offers to India moved up amid increasing global iron ore prices and stood at USD 55-56/MT, CFR Kandla.
Week 6 outlook
1. Semis prices are likely to increase in coming days due to approval of MIP on steel products. However, manufacturers are still waiting for further clarity on MIP.
2. Although, there is lack of clarity about the market direction amid MIP imposition, market participants expect prices may correct further.
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