Domestic semi finish market remained bearish over lack of buying appetite and weak global and domestic market sentiments.
Prices in week 20 declined widely by INR 200-1,500/MT W-o-W. Globally, Chinese billet prices in a week down by USD 70/MT and spot iron ore prices by USD 4/MT.
In addition, stocking of billet in Bangladesh halted over the news of increase in import duty on billet in its upcoming budget to be announced in Jun’16.
Sponge market showed decline of INR 200-400/MT, while, billet dropped down steeply by INR 700-1,500/MT. Major fall in billet prices was seen in Hyderad (-1,500), followed by Durgapur (-1,200) and Mumbai (-950).
Meanwhile, Indian Pig iron prices fluctuated widely in the range of INR 100-500/MT. Major fall of INR 500/MT reported in Raigarh, followed by Durgapur by INR 475/MT. Whereas, Hyderbad market rose by INR 375/MT in the same duration.
Week 20 dynamics
1. 78-80 FeM C-DRI offers assessed at INR 11,000/MT (-400) ex-Durgapur, INR 10,400/MT (-400) ex-Rourkela, INR 12,300/MT (-250) ex-Raipur and INR 11,600/MT (-250) ex-Bellary. Price change is weekly.
2. 78-80 FeM P-DRI prices dipped to INR 10,000-12,500/MT across major markets.
3. 125*125 mm billet prices evaluated at INR 21,300/MT (-1,200) in Durgapur, INR 20,500/MT (-900) in Rourkela, INR 21,400/MT (-700) in Raipur, INR 22,850/MT (-950) in Mumbai and INR 22,500/MT (-1,500) in Hyderabad.
4. Pellet prices remained stable amid subdued buying in domestic market. Pellet prices in Bellary declined over fall in sponge iron prices.
5. Imported scrap offers fell by USD 20-30/MT in-line with fall in ingot/billet prices. Shredded was available at USD 270-280/MT, CFR India.
Week 21 prospects
1. Semi finish sales are likely to remain under pressure on over capacity but prices expected to remain firm.
2. Imported scrap trade remain quite, but expected to open with downturn of USD 10-20/MT in prices during week 21.
3. Sources reported that west Indian pellet prices are likely to fall by INR 200-300/MT in days to come.
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