Week 25 Updates: Indian Semis Offers Unaltered

In week 25, semis prices remain unaltered due to subdued trade activities. While, south market reported an uptick of INR 250/MT.

Currently, sponge makers are trying to keep offers strong as they are now getting better response by buyers end on arriving rainy season.

Pig iron offers in secondary market further downturn by INR 100-500/MT during week 25 on weak buying interest by induction operators with an anticipation of further price corrections. This in turn has increased selling pressure on primary and secondary Pig iron players.

Week 25 dynamics

1. 78-80 FeM C-DRI offers are assessed at INR 11,500/MT (+50) ex-Durgapur, INR 10,300/MT (-50) ex-Rourkela, INR 11,950/MT (-150) ex-Raipur and INR 11,350/MT (-350) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices fluctuated to INR 10,500-12,100/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 20,600/MT (-100) in Durgapur, INR 20,000/MT (0) in Rourkela, INR 21,000/MT (+50) in Raipur, INR 22,700/MT (0) in Mumbai, INR 22,200/MT (+250) in Chennai and INR 22,250/MT (+250) in Hyderabad.
4. Iron ore prices in domestic & global market remain unchanged during the week.
5. Pellet offers firm amid poor trade activities, offers assessed in the range of INR 2,850-4,800/MT (Basic) in domestic market.

Week 26 outlook

1. Semis prices are likely to remain volatile, looking at subdued demand.
2. Pig iron prices may fall further looking at sluggish demand and increase in supply by secondary & primary players.
3. Global scrap offers may come down due to weak trade activities across the globe.

Raw material & semis prices during week 25 (18 Jun’16)

Basic prices, all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research