In week 24, semi finish prices in domestic market maintains at current level on subdued demand.
In the week prices remain volatile by INR 200-500/MT. Major fall in billet prices were seen in southern & western regions by upto INR 500/MT on sluggish finish long buying amid water scarcity in the region. Whereas prices in other markets remained firm with volatility of INR 100-300/MT. Sponge iron prices remain strongly firm during this week due to low production and shortage reported specially in east market.
Pig iron offers in secondary market slumped by INR 500-1,000/MT on weak buying interest and improved availability of pooled iron.
Week 24 dynamics-
1. 78-80 FeM C-DRI offers assessed at INR 11,450/MT (+300) ex-Durgapur, INR 10,100/MT (0) ex-Rourkela, INR 12,100/MT (-50) ex-Raipur and INR 11,550/MT (+100) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices declined to INR 10,350-12,350/MT across major markets.
3. 125×125 mm billet prices were evaluated at INR 20,750/MT (0) in Durgapur, INR 20,000/MT (-300) in Rourkela, INR 21,000/MT (0) in Raipur, INR 22,700/MT (-400) in Mumbai, INR 21,950/MT (-250) in Chennai and INR 22,250/MT (-400) in Hyderabad.
4. Odisha based merchant miners keep offers firm as of now.. While, during the week Global iron ore prices moved up by USD 2/MT to USD 52/MT CFR China. Prices have increased as Chinese steel mills went for restocking raw material before Dragon Boat Festival.
5. Pellet offers reduced by INR 100-400/MT W-o-W over weak buying interest by domestic sponge makers.
Week 25 outlook-
1. Semis prices are likely to remain volatile owing to squeezed conversion spread. However manufacturers will keep an eye on construction activities in monsoon season.
2. Trade sources based in Raipur (central) & Durgapur (east) region mentioned that billet makers will remain under pressure as demand in local market and from out of states is not supportive.
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