Week 18 Ends on Sluggish Note for Indian Semis Market

Week 18 concluded on sluggish note as semi finish market reported price corrections of INR 200-500/MT.

In a week, sponge market showed decline in prices by INR 100-500/MT and billet by INR 150-250/MT in domestic market. However, billet offers in south, especially Hyderabad boosted up by INR 500/MT in the duration.

Contrastingly, Pig iron prices upsurged by INR 300-1,000/MT on account of supply shortage in domestic market.

Week 18 highlights

1. 78-80 FeM C-DRI offers assessed at INR 11,800/MT (-300) ex-Durgapur, INR 11,000/MT (-100) ex-Rourkela, INR 12,400/MT (-500) ex-Raipur and INR 12,100/MT (+50) ex-Bellary. Price change is weekly.
2. 78-80 FeM P-DRI prices dipped to INR 10,700-12,800/MT across major markets.
3. 125*125 mm billet prices evaluated at INR 22,500/MT (-200) in Durgapur, INR 21,500/MT (-150) in Rourkela, INR 22,050/MT (-250) in Raipur, INR 24,050/MT (-150) in Mumbai and INR 25,000/MT (+500) in Hyderabad.
4. Pellet prices in central India (Raipur) fell by INR 150/MT amid dull buying.
5. Chhattisgarh based plants prefer Odisha iron ore over NMDC CG iron ore in Apr’16 over cost effectiveness.
6. Bullish global sentiments have driven up imported scrap offers by USD 15-30/MT; shredded available at USD 285/MT, CFR India.

Week 19 outlook

1. Minor fluctuations in semi finish offers are expected in days to come.
2. Imported scarp offers are likely to rise further as Turkey is still showing active participation in buying. However, Indian buyers showed less willingness.
3. As per sources,iron ore fines prices in Odisha are under pressure and expected to fall further.