During week 47 Indian Semis price fell by INR 500-2,000/MT (US$ 7-30) due to less trades on demonitization of Indian Currency.
Indian semis manufacturers were under pressure as demonitazation of Indian currency has halted their trade activities. As a result prices of both the products sharply plunged – Sponge by INR 500-1,100/MT and Billet upto INR 2,000/MT.
In week 47, Pig iron price almost remained firm in Central & South India. However, in East, NINL which is known as Key supplier & price trend decider has reduced prices by INR 1,000/MT to INR 20,500/MT ex-plant due to less trades.
Week 47 Dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 13,050/MT (-600) ex-Durgapur, INR 12,500/MT (-500) ex-Rourkela, INR 13,800/MT (-850) ex-Raipur and INR 14,650/MT (-350) ex-Bellary; changes of prices depends upon weekly assessment.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 11,700-15,000/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 21,200/MT (-300) in Durgapur, INR 20,700/MT (-400) in Rourkela, INR 20,950/MT (-1,850) in Raipur, INR 23,250/MT (-1,200) in Mumbai, INR 24,450/MT (+900) in Chennai and INR 23,000/MT (-2,000) in Hyderabad.
4. Iron ore prices were firm in Domestic market. However, in global market offers down by US$ 7/MT to US$ 73/MT, CNF China.
5. Indian Pellet manufacturers were under pressure as trades was not good in domestic market. However, despite weak trades the manufacturers maintained offers on same levels at INR 3,850-6,400/MT (US$ 57-95) ex-works. Global offers assessed at US$ 97/MT, CNF China.
Week 48 outlook
1. Indian Semis prices may remains under pressure due to weak demand on liquidity crunch in the market. Production cut & plants closure may continue by standalone secondary manufacturers.
2. Domestic pellet offers may remains slightly change amid weak trades & better realization on global trades.
3. Pig iron prices may slightly fall in Central & South India as NINL reduced its prices.
Indian raw material and semis prices as on 19 Nov’16
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 23,200 | – 1,300 |
| Scrap HMS (80:20) | ex-Mumbai | 16,500 | 0 |
| C-DRI 80 FeM | ex-Raipur | 13,800 | – 850 |
| P-DRI 80 FeM | ex-Raipur | 12,700 | – 1,100 |
| Pig iron Steel grade | ex-Raipur | 21,400 | 0 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,800 | 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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