Indian semis offers increased during week 28. Sponge prices uptick by INR 100-250/MT and billet by upto INR 350/MT. Manufacturers mentioned, despite rise in prices, trade activities were not much supportive due to festive seasons and bank closure during most of the days. They further added, buyers are in wait and watch mode, viewing the price volatility in the market.
Lull trade activities were also seen in Indian Pig iron market as prices moved down by INR 100-300/MT W-o-W. Post price cut by NINL, other Indian secondary manufacturers followed suit.
Week 28 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 11,500/MT (+250) ex-Durgapur, INR 10,650/MT (+250) ex-Rourkela, INR 11,900/MT (+100) ex-Raipur and INR 11,600/MT (-350) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices fluctuated to INR 10,500-12,400/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 20,350/MT (+350) in Durgapur, INR 19,400/MT (0) in Rourkela, INR 20,300/MT (-150) in Raipur, INR 21,500/MT (-500) in Mumbai, INR 21,750/MT (-250) in Chennai and INR 22,000/MT (0) in Hyderabad.
4. Iron prices were unchanged during the week post price corrections in the starting of current month. Global iron ore prices moved up by USD 1/MT to USD 55/MT, CNF China.
5. Iron pellet offers fell by INR 50-100/MT. Current offers are in the range of INR 3,000-5,000/MT ex-works.
6. Scrap trade activities were hand to mouth in the week.
Week 29 outlook
1. Indian semis prices may remain volatile, looking at strong sponge offers and weak finish long steel demand. This may balance Indian semis offers.
2. High price volatility may be witnessed in scrap market in coming week as Ramadan festive ended this week.
4. Pig iron offers will remains under pressure due to high inventory in Indian domestic market.
3. Following price cut of INR 100-150/MT by few big miners for Jul’16 deliveries, other miners may reduce their offers.
Raw material & semis prices as on 9 Jul’16
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 21,500 | -500 |
| Sponge CDRI 80 FeM | ex-Raipur | 11,900 | +50 |
| Sponge PDRI 80 FeM | ex-Raipur | 10,900 | +100 |
| Pig iron Steel grade | ex-Durgapur | 16,800 | -300 |
| Scrap HMS (80:20) | ex-Mumbai | 15,600 | -500 |
| Pellet Fe 63%, 6-20 mm | Barbil, loaded to wagons | 3,000 | 0 |
| Iron ore Fe 62%, 10-30 mm | ex-Mines, Joda | 2,000* | 0 |
Basic prices, all taxes will be applicable
*Incld Royalty, DMF & NMET
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