Semis offers in domestic market jumped up by INR 400-1,000/MT in a week, supported by better demand and expensive raw material offers.
Week 39 recorded the highest price rise in semis products. Price hike of INR 400-1,000/MT reported in billet, upto INR 500/MT in sponge and INR 500-3,000/MT in Pig iron across major markets. Seasonal improved demand and high raw material prices have supported the semis market. Sources mentioned that better trades took place at increased offers.
Week 39 dynamics
1. 78-80 FeM C-DRI offers assessed at INR 13,500/MT (-200) ex-Durgapur, INR 13,400/MT (+200) ex-Rourkela, INR 14,900/MT (+400) ex-Raipur and INR 14,500/MT (+400) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices increased to INR 12,900-15,300/MT across major markets.
3. 125×125 mm billet prices evaluated at INR 21,850/MT (+450) in Durgapur, INR 21,450/MT (+450) in Rourkela, INR 22,400/MT (+900) in Raipur, INR 24,200/MT (+800) in Mumbai, INR 24,000/MT (+450) in Chennai and INR 23,750/MT (+250) in Hyderabad.
4. Post price rise of INR 50-250/MT by Essel Mining during last week, few other miners in Odisha followed suit in week 39.
5. Pellet offers went up by INR 50-150/MT due to increased prices of iron ore and sponge. Current offers for pellet are hovering in the range of INR 3,550-5,450/MT ex-works.
6. Melting scrap offers moved up by INR 200-800/MT in west and south India, following rise in semis prices. According to traders, scrap demand improved due to expensive sponge and Pig iron.
Week 40 outlook
1. According to industry experts, semis market may find stability as conversion spread (margins) of induction operators still remains low. Semis market scenario will be more dependent on demand for finish long steel.
2. Indian pellet manufacturers may further increase offers on account of rising sponge prices.
3. Higher sponge offers may improve scrap demand for both domestic and imported.
Indian raw material and semis prices as on 24 Sep’16
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 24,200 | + 800 |
| Scrap HMS (80:20) | ex-Mumbai | 16,300 | + 200 |
| C-DRI 80 FeM | ex-Raipur | 14,900 | + 400 |
| P-DRI 80 FeM | ex-Raipur | 13,900 | + 450 |
| Pig iron Steel grade | ex-Raipur | 22,100 | + 2,100 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,200 | 0 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 2,800* | + 250 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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