Indian semis market reported mixed price sentiments in week 40, following average trade activities.
Semi finish prices last week fluctuated by INR 100-550/MT, following average trade activities. According to industry experts, buyers and sellers were cautious to take position in the domestic market.
During the week, billet prices fluctuated by upto INR 450/MT and sponge by INR 550/MT. On the other hand, Pig iron prices moved up sharply by INR 500-1,000/MT on account of limited supply and expensive coking coal prices. Moreover, Indian induction furnace operators also reduced their Pig iron melting proportion in order to reduce high input cost.
Week 40 dynamics
1. 78-80 FeM C-DRI offers assessed at INR 13,550/MT (+50) ex-Durgapur, INR 13,500/MT (+100) ex-Rourkela, INR 15,150/MT (+250) ex-Raipur and INR 15,050/MT (+550) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices assessed in the range of INR 13,050-15,600/MT across major markets.
3. 125×125 mm billet prices evaluated at INR 22,000/MT (0) in Durgapur, INR 21,700/MT (+200) in Rourkela, INR 22,400/MT (-100) in Raipur, INR 23,600/MT (-400) in Mumbai, INR 24,450/MT (+450) in Chennai and INR 24,000/MT (+250) in Hyderabad.
4. Odisha based miners once again raised iron ore prices by upto INR 250/MT. Domestic iron ore prices rose by around INR 800-900/MT M-o-M. While, global iron ore prices were firm at USD 55/MT, CNF China.
5. Pellet offers increased further by INR 50-350/MT, following rise in iron ore prices and better demand from the sponge manufacturers. Current, domestic offers for pellet are hovering in the range of INR 4,300-5,450/MT ex-works.
6. Melting scrap offers moved up slightly by INR 100-300/MT in west and south India due to strong demand.
Week 41 outlook
1. Semis prices are anticipated to remain strong due to further increase in key raw material prices both in domestic and global markets. Ingot/billet manufacturers are still poising with low margins, which may lead to further rise in prices.
2. Indian pellet manufacturers may further increase their offers on account of rising iron ore prices.
3. Less scope of further price rise in domestic scrap as imported scrap offers are suitable for Indian smelters.
Indian raw material and semis prices as on 01 Oct’16
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 23,600 | – 400 |
| Scrap HMS (80:20) | ex-Mumbai | 16,600 | + 300 |
| C-DRI 80 FeM | ex-Raipur | 15,150 | + 250 |
| P-DRI 80 FeM | ex-Raipur | 14,100 | + 200 |
| Pig iron Steel grade | ex-Raipur | 22,500 | + 550 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,300 | + 100 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 3,300* | + 500 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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