Week 41- Indian Semis Market Overview

During the week, Indian semis market reported mixed price sentiments amid selling pressure to the manufacturers.

In week 41, prices in central & east India were changed upto INR 500/MT, while in south & west India it plunged upto INR 1,000/MT following limited trade activities. According to the suppliers, buyers were cautious about to purchase on prevailing sluggish sentiments.

During the week, billet prices volatile upto INR 1,000/MT and sponge by INR 450/MT. However, pig iron prices almost remained firm amid less demand. Few Induction furnace operators in central and east india reported, that they are not procuring Pig iron due to high input cost and melting CPC (Calcined Petroleum Coke) in major quantity.

Week 41 Dynamics

1. 78-80 FeM C-DRI offers assessed at INR 13,950/MT (+450) ex-Durgapur, INR 13,600/MT (+100) ex-Rourkela, INR 15,300/MT (+150) ex-Raipur and INR 14,650/MT (-400) ex-Bellary. Price changes indicated are weekly.

2. 78-80 FeM P-DRI prices assessed in the range of INR 13,350-15,500/MT across major markets.

3. 125×125 mm billet prices evaluated at INR 22,000/MT (0) in Durgapur, INR 21,500/MT (-200) in Rourkela, INR 22,450/MT (+50) in Raipur, INR 23,800/MT (+200) in Mumbai, INR 23,500/MT (-950) in Chennai and INR 23,000/MT (-1,000) in Hyderabad.

4. NMDC has increased prices by INR 400-470/MT following the price rise trend by Odisha based miners. Global iron ore prices were firm at USD 55-56/MT, CNF China.

5. Pellet offers again move up by INR 250-300/MT in east and south India due to rising iron ore prices and better demand from the sponge manufacturers. Current, offers for Fe 63% pellets in domestic market reached at INR 4,300-5,450/MT ex-works.

6. Melting scrap offers down by INR 300-500/MT in west and south India on weak demand and improved availability as Indian smelters resumed imported scrap purchases.

Week 42 outlook

1. Industry sources assuming, price corrections on semis on account of weak demand in finished steel; Improved availability of sponge iron and scrap in domestic market.

2. Indian pellet manufacturers may slightly change offers looking at minor price change of sponge iron.

3. Indian scrap prices may come under pressure as Indian smelters have booked bulk quantities of imported scrap for the current month.

Indian raw material and semis prices as on 08 Oct’16

Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research