Semi finish prices in Indian domestic market reacted over imposed import duty on billet by Bangladesh.
Prices fall, sponge by INR 100-300/MT and billet by upto INR 900/MT. Major fall in billet prices was seen in Chennai by INR 900/MT during the week. Market participants expecting prices are bottom out and may find support at this levels due to squeezed conversion spread and prices are at all time low.
In same line Pig iron prices also slump in secondary market by INR 200-800/MT as NINL announce sudden reduction in price by INR 900/MT. Other secondary manufacturer will follow suite.
Week 23 dynamics
1. 78-80 FeM C-DRI offers assessed at INR 11,150/MT (-150) ex-Durgapur, INR 10,100/MT (-100) ex-Rourkela, INR 12,150/MT (-150) ex-Raipur and INR 11,450/MT (+50) ex-Bellary. Price change is weekly.
2. 78-80 FeM P-DRI prices dipped to INR 10,150-12,200/MT across major markets.
3. 125×125 mm billet prices evaluated at INR 20,750/MT (-600) in Durgapur, INR 20,300/MT (-300) in Rourkela, INR 21,000/MT (-250) in Raipur, INR 23,100/MT (+100) in Mumbai, INR 22,200/MT (-900) in Chennai and INR 22,650/MT (+150) in Hyderabad.
4. Odisha based largest miner reduced lump prices by INR 150/MT and Chattisgarh based NMDC has reduced prices by INR 180-230/MT for Jun’16 deliveries. While, Global iron ore prices remain stable during the week at USD 50/MT CFR China.
5. Pellet buying in domestic market unsupported as few plants have shifted to proudce C-DRI instead of PDRI. South based pellet makers reduced offers by INR 100/MT, whereas, offers at across India get stable.
6. Imported scrap offers fell by USD 5-15/MT; shredded offers assesed at USD 225-230/MT, CFR India.
Week 24 outlook
1. Semis makers may remain cautious due to low buying, bearish sentiments and falling raw material price.
2. Imported scrap trade will remain quiet and which may result offers come down.
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