During week 42 Indian semis market reported price fall of upto INR 1,000/MT. Major price corrections recorded in billet.
Weak trade activities amid festive season have plunged semis prices by INR 400-1,000/MT. During the week, billet prices slump by INR 400-1,000/MT and sponge upto INR 500/MT in across major Indian markets.
However, despite poor trades Pig iron manufacturers have maintain offers on same levels. Sources mentioned, traders who plays a key role in pig iron market are currently under selling pressure; willing for buyers.
Week 42 Dynamics
1. 78-80 FeM C-DRI offers assessed at INR 14,100/MT (+150) ex-Durgapur, INR 13,200/MT (-400) ex-Rourkela, INR 14,800/MT (-500) ex-Raipur and INR 14,200/MT (-450) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices assessed in the range of INR 13,000-14,800/MT across major markets.
3. 125×125 mm billet prices evaluated at INR 22,000/MT (0) in Durgapur, INR 21,300/MT (-200) in Rourkela, INR 21,650/MT (-850) in Raipur, INR 22,900/MT (-900) in Mumbai, INR 23,100/MT (-400) in Chennai and INR 22,500/MT (-500) in Hyderabad.
4. Iron ore prices were unchanged post continues price rise in last few weeks.
5. Indian pellet offers were more or less firm amid holidays. Currently, domestic offers are prevailing at INR 4,300-5,450/MT ex-works.
6. Scrap offers in west & south India down by INR 200-500/MT on improved availability and falling semis prices.
Week 43 outlook
1. Semis prices are anticipated to further fall looking at limited trade amid heavy selling pressure to the manufacturers.
2. Domestic pellet offers may remains slightly change. However, falling sponge prices is a concern for pellet manufacturers.
3. Indian scrap prices may remains fall as imported scrap is available at low prices.
4. Pig iron manufacturers may pressurize to cut prices as furnace operators halted their purchase and melting low cost substitute products.
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 | 22,900 | – 900 |
| Scrap HMS (80:20) | ex-Mumbai | 16,500 | – 200 |
| C-DRI 80 FeM | ex-Raipur | 14,800 | – 500 |
| P-DRI 80 FeM | ex-Raipur | 13,500 | – 750 |
| Pig iron Steel grade | ex-Raipur | 22,500 | 0 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,600 | 0 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 3,300* | 0 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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