During week 43 Indian semis market has reported price corrections upto INR 1,000/MT. Major price fall is recorded in central and south India.
Bullish trade activities and coupled with increase selling pressure and liquidity crunch have consistently fall Indian semis prices during the week. Major prices fall in sponge iron was reported in Raipur by INR 900/MT and billet by INR 850/MT in Chennai.
Secondary pig iron manufacturers in central and east India also have decreased prices by around INR 1,000/MT, following the price corrections in sponge and billet. Currently, Steel grade offers in domestic market reached at INR 20,000-21,500/MT ex-works, which was at INR 21,000-22,500/MT in week 42.
Week 43 Dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 14,000/MT (-100) ex-Durgapur, INR 12,700/MT (-500) ex-Rourkela, INR 13,900/MT (-900) ex-Raipur and INR 13,850/MT (-350) ex-Bellary; changes of prices depends upon weekly assesment.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 12,000-14,700/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 21,650/MT (-350) in Durgapur, INR 20,750/MT (-550) in Rourkela, INR 21,050/MT (-500) in Raipur, INR 22,500/MT (-400) in Mumbai, INR 22,250/MT (-850) in Chennai and INR 22,250/MT (-250) in Hyderabad.
4. Domestic Iron ore prices were firm despite fall in sponge and pellet prices.
5. Indian pellet offers were fell by INR 50-300/MT in east and south India. Falling sponge prices led to prices fall in pellet.
6. Scrap offers in west and south India down by INR 500-1,000/MT on improved availability and falling semis prices.
Week 44 outlook
1. Semis prices may remain under pressure due to sluggish demand amid festival season which make lull trade activities.
2. Domestic pellet offers likely to fall soon owing to steep price fall in sponge iron which lead to poor trades.
3. Indian scrap prices may continue fall on declining semis prices amid increase availability in domestic market on rising import.
4. Pig iron prices are anticipated to remains volatile due to rising coking coal prices and weak trades at current prices.
Indian raw material and semis prices as on 22 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 | 16,200 | 0 |
| C-DRI 80 FeM | ex-Raipur | 13,900 | -800 |
| P-DRI 80 FeM | ex-Raipur | 12,950 | -650 |
| Pig iron Steel grade | ex-Raipur | 21,300 | -1,200 |
| 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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