During week 30, Indian billet offers down upto INR 300/MT. Where as sponge offers increase by INR 200-600/MT. Major price rise have seen in east sponge market by upto INR 600/MT due to low production. However, south offers more of less similar amid limited trade activities in the market.
Induction furnace operators in major markets are reported to curtail production from 1st Aug’16 instead to run units 24 hrs with less margins (conversion spread).
Indian pig iron prices firm as buyers and sellers are in wait and watch mode for NINL latest price circullar. However, as per source the NINL new price circular will declare in Aug’16.
Week 30 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 11,900/MT (+600) ex-Durgapur, INR 10,850/MT (+300) ex-Rourkela, INR 12,300/MT (+200) ex-Raipur and INR 11,700/MT (+100) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices fluctuated to INR 10,450-12,400/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 19,550/MT (-150) in Durgapur, INR 18,800/MT (-150) in Rourkela, INR 19,550/MT (-50) in Raipur, INR 21,400/MT (0) in Mumbai, INR 22,200/MT (-300) in Chennai and INR 21,500/MT (0) in Hyderabad.
4. Indian iron prices remain firm. However, global iron offers down by USD 3/MT to USD 56/MT CNF China, post increase offers in the last week by USD 4/MT.
5. Indian iron pellet offers firm with marginally change of INR 50-100/MT. Current offers are at INR 2,900-5,150/MT ex-works.
6. Indian scrap offers volatile on strong sponge offers. Imported scrap offers remains higher for Indian buyers as trades are good in global market.
Week 31 outlook
1. Billet makers in major markets are planing to curtail production this may provide stability in Indian semis prices.
2. Domestic & Imported scrap offers may slight change as trades are taking place at current offers.
3. Indian iron ore prices may unmoved due to seasonal less production and demand.
4. Pig iron Price may not fall significantly looking at recent bulk export deals by large manufacturers, which will affect supply in domestic market.
Raw material & semis prices as on 23 Jul’16
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 21,400 | 0 |
| Sponge CDRI 80 FeM | ex-Rourkela | 10,850 | + 350 |
| Sponge PDRI 80 FeM | ex-Raipur | 11,200 | + 100 |
| Pig iron Steel grade | ex-Durgapur | 16,600 | – 150 |
| Scrap HMS (80:20) | ex-Mumbai | 15,600 | – 50 |
| Pellet Fe 63%, 6-20 mm | Barbil, loaded to wagons | 2,900 | – 100 |
| 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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