Indian Semis Offers Improve During Week 26

During week 26, semis market reported rise in prices. Supply crunch in domestic market supported sponge prices; in turn positively impacted billet prices too.

Closure of few sponge plants in south and east India had created shortage in the market. As a result, prices increased by upto INR 350/MT. Following price rise in sponge, billet offers also moved up by INR 100-500/MT during the week.

However in the same period, Pig iron offers slumped by upto INR 1,000/MT due to increase availability amid poor trades.

Week 26 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 11,500/MT (0) ex-Durgapur, INR 10,500/MT (+200) ex-Rourkela, INR 12,100/MT (+150) ex-Raipur and INR 11,700/MT (+350) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices fluctuated to INR 10,450-12,250/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 20,450/MT (-150) in Durgapur, INR 20,100/MT (+100) in Rourkela, INR 21,050/MT (0) in Raipur, INR 22,600/MT (-200) in Mumbai, INR 22,500/MT (+300) in Chennai and INR 22,500/MT (+500) in Hyderabad.
4. As per sources, big miners in Odisha reduced iron ore prices by upto INR 200/MT (officials are yet not confirmed). While in global market, offers were more or less unchanged.
5. Indian pellet offers were stable during the week. Current offers are in the range of INR 2,900-4,800/MT (basic) in domestic market.

Week 27 outlook
1. Semis prices are likely to remain volatile, looking at subdued demand.
2. Trade sources believe Pig iron prices will fall further looking at sluggish demand amid increase in inventory levels in the domestic market.
3. Global scrap offers may fluctuate further owing to running Ramadan festival, which has made trade activities poor.

Raw material & semis prices as on 25 Jun’16

Basic prices, all taxes will be applicable
*Incld Royalty, DMF & NMET