Week 50 Updates – Slight Price Rise in Indian Semis

Indian Billet & Sponge prices increased moderately in week 50. Both the products have registered a price rise – sponge up to INR 200/MT & billet by INR 500/MT (USD 8). Sources reported that, trades were modest during the week.

However, in South prices of sponge fell by INR 300-400/MT & billet by INR 400-1,000/MT due to falling scrap prices in the region.

Week 50 Dynamics

1. 78-80 FeM C-DRI offers are assessed at INR 14,350/MT (+200) ex-Durgapur, INR 12,600/MT (0) ex-Rourkela, INR 14,000/MT (+100) ex-Raipur and INR 13,650/MT (-350) ex-Bellary; change of prices depends upon weekly assessment.

2. 78-80 FeM P-DRI prices are assessed in the range of INR 12,500-14,350/MT across major markets.

3. 125×125 mm billet prices are evaluated at INR 22,450/MT (+450) in Durgapur, INR 21,550/MT (+200) in Rourkela, INR 22,300/MT (+50) in Raipur, INR 23,800/MT (+100) in Mumbai, INR 23,150/MT (-450) in Chennai and INR 23,000/MT (-1,000) in Hyderabad.

4. During the week Indian Iron ore prices were firm.

5. Pellet manufacturers in Raipur & Jharsugda have reduced prices by INR 100/MT & INR 200/MT, respectively. Offers fell in line with less buying interest by sponge manufacturers on reduced production. While in the global market it got stability at USD 100/MT, CNF China.

6. On weekly average basis, pig iron prices registered price rise of INR 450/MT in Central (Raipur) & INR 1,000/MT in East India (Durgapur). However, in South (Hyderabad) it remained unchanged despite weak trades in the product.

Week 51 outlook

1. Subdued demand & falling production likely to balance semis prices at current levels. Moreover, if the demand in long steel improves, prices may shoot up.

2. Falling sponge production may put pressure on Indian pellet manufacturers.

3. Pig iron prices may find support as the large shares of manufacturers have temporarily halted operations. Also increase in export deals is another plus point for Indian pig iron market.

Raw material & Semis prices as on 10 Dec’16

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