During the week, Indian sponge and billet prices were almost firm due to subdued trades in the domestic market. Prices for both the products fluctuated merely by INR 100-200/MT. However in South market, offers moved up in couple of days by upto INR 500/MT owing to prevailing shortage of scrap in the region.
Meanwhile, most of the Pig iron manufacturers raised their offers by around INR 500/MT due to rising coal prices and firm demand by domestic & global buyers.
Week 35 dynamics
1. 78-80 FeM C-DRI offers assessed at INR 12,500/MT (-100) ex-Durgapur, INR 11,300/MT (-50) ex-Rourkela, INR 12,550/MT (+100) ex-Raipur and INR 12,300/MT (+200) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices increased to INR 10,600-13,100/MT across major markets.
3. 125×125 mm billet prices evaluated at INR 19,650/MT (+50) in Durgapur, INR 18,850/MT (-150) in Rourkela, INR 19,450/MT (-150) in Raipur, INR 21,900/MT (+100) in Mumbai, INR 21,800/MT (+450) in Chennai and INR 21,450/MT (+50) in Hyderabad.
4. Indian iron ore prices were firm. Whereas, offers in global market down by USD 2/MT to USD 59/MT (CNF China) owing to weak trades.
5. Pellet offers in Raipur and Jharsuguda increased by INR 100/MT and INR 400/MT respectively due to shortage of material amid limited suppliers in the domestic market.
6. Melting scrap offers in west and south India remained volatile by INR 500/MT.
Week 36 outlook
1. Billet offers may find support on account of anticipated better demand and strong raw material prices. Also, low conversion spread will force manufacturers to keep offers strong.
2. Iron pellet prices may increase further as improvement in demand in the international market and limited sellers in Indian market.
3. It is anticipated that Indian miners may either sustain offers or will raise slightly as production hit by rainy season and firm demand & supply during the same period.
4. Pig iron offers may remain strong. Central & east based few manufacturers are yet to declare fresh offers with price rise.
5. Scrap prices may fluctuate further as demand & supply is subdued in domestic market.
Snapshot of Indian raw material and semis prices as on 27 Aug’16
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 21,900 | + 100 |
| Scrap HMS (80:20) | ex-Mumbai | 15,300 | + 200 |
| Sponge CDRI 80 FeM | ex-Raipur | 12,550 | + 100 |
| Sponge PDRI 80 FeM | ex-Raipur | 11,250 | – 50 |
| Pig iron Steel grade | ex-Raipur | 17,200 | + 50 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 3,800 | 0 |
| Iron ore Fe 62%, 10-30 mm | ex-Mines, Joda loaded to wagon | 2,550* | 0 |
Basic prices, all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
Leave a Reply