Indian semis trades get supported in week 48 as prices in both the products increases – billet by INR 500-1,000/MT and in sponge upto INR 500/MT. However, in south India offers plunge down by INR 500-800/MT due to falling scrap prices in the region.
Manufacturers in major markets reported that, despite heavy liquidity crunch inquiries have started to pick. During the week, major price rise in billet have seen in Central & West India by INR 800-1,000/MT, while in sponge by INR 500/MT in East India.
Week 48 Dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 13,500/MT (+450) ex-Durgapur, INR 12,300/MT (-200) ex-Rourkela, INR 13,900/MT (+100) ex-Raipur and INR 13,900/MT (-750) ex-Bellary; change of prices depends upon weekly assessment.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 12,250-14,550/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 21,600/MT (+200) in Durgapur, INR 21,000/MT (+300) in Rourkela, INR 22,000/MT (+1,000) in Raipur, INR 24,000/MT (+800) in Mumbai, INR 23,750/MT (-700) in Chennai and INR 23,500/MT (+500) in Hyderabad.
4. Iron ore prices were firm in Domestic market. However, in global market offers up by US$ 6-7/MT to US$ 79-80/MT, CNF China.
5. On W-o-W premises, Indian Pellet manufacturers has reduce prices up to INR 400/MT (US$ 6) due to weak demand. Current, offers in the domestic market are at INR 4,000-6,400/MT (US$ 58-95) ex-works. While, in global market it increased to US$ 99-100/MT, CNF China.
6. During the week, secondary producers have cut pig iron prices by INR 500-1,000/MT (US$ 7-15) due to lull in demand on falling Ingot/billet production.
Week 49 outlook
1. Less supply and subdued demand may remain volatile Indian for semis prices in days to come.
2. Domestic pellet offers may report another fall on anticipated weak demand due to selling pressure to the sponge manufacturers.
3. Pig iron manufacturers may come under pressure as most of the inductions are operational at below capacity. This may report price corrections in pig iron market.
Raw material & Semis prices as on 26 Nov’16
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 24,000 | + 800 |
| Scrap HMS (80:20) | ex-Mumbai | 16,500 | 0 |
| C-DRI 80 FeM | ex-Raipur | 13,900 | + 100 |
| P-DRI 80 FeM | ex-Raipur | 13,000 | + 300 |
| Pig iron Steel grade | ex-Raipur | 21,300 | – 100 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,600 | – 200 |
| 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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