Domestic semi finish market remained under pressure in week 12 as prices dipped by INR 500-1,600/MT within a week. MS billet prices slumped by INR 900-1,600/MT and sponge by *INR 500-600/MT across major regions.
The prime factors of such steep fall in prices are week long low rebar sales and increase in billet supply as production gained.
However, Pig iron prices surged steeply by INR 900-1,050/MT W-o-W and hovered within 16,800-20,250/MT.
Week 12 highlights
1. Current 78-80 FeM sponge iron prices prevailing in Durgapur at *INR 12,200/MT (-500), Rourkela at INR 11,100/MT (-350), Raipur at INR 12,950/MT (-500) and Bellary at INR 12,600/MT (-600). Price change is weekly.
2. P-DRI prices hovered in the range of INR 11,000-13,500/MT in the market.
3. Billet price movements are INR 22,400/MT (-900) ex-Durgapur, INR 21,100/MT (-800) ex-Rourkela, INR 22,400/MT (-900) ex-Raipur, INR 23,600/MT (-1,600) ex-Mumbai and INR 24,500/MT (-1,500) ex-Hyderabad.
4. Imported scrap offers increased to USD 230-235/MT, CFR India due to bullish sentiments prevailing in global market.
5. Essel Mining raised lump prices by INR 200/MT. Other miners rolled over prices.
Week 13 prospects
1. Festive season in the upcoming week may put further pressure on semis offers.
2. Active buying in other nations may lead to surge in imported scrap offers. However, Indian buyers still seem to be reluctant in next week.
3. Market sources expect iron ore prices to increase in Apr’16 over increase in global prices.
*Corrections
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