India: Semi Finished Market increased Last Week by 8-9% M-o-M

Semi Finish price continue to increase with rising raw material price. Major week highlights are:

• Mumbai (Maharashtra) power tariff herd to increase by Rs 1.5/unit, making cost of production to rise by Rs 1,000-1,500/MT. However official confirmation of tariff hike is not confirmed yet.
• Mumbai MS Ingot price increase by Rs 1,500/MT W-o-W and Rs 2,900/MT M-o-M
• NMDC keep Iron ore prices unchanged for Sep'13
• Imported scrap down by 30% M-o-M
• Sponge Iron shortage continue to remain in Central and South India
• Gap between Sponge Iron and Sponge pellet reduce to Rs 700-1000/MT from earlier Rs 1200-1500/MT

This week market will keep eye on:

• Mumbai electricity tariff impact on demand and supply
• Pellet production, its export and domestic supply
• Sponge Iron production in Central and South India
• Will Re-bar high price will be materialize in sales term.