Week 51 Updates – Slight Price Change in Indian Semis

During the week billet & sponge prices fluctuated by INR 50-300/MT in Central, East & South India amid better demand. However, in Western India, billet prices sharply gained by INR 800-1,400/MT on couple of reasons, shortage of scrap and improved demand from the both domestic & global market.

Week 51 Dynamics

1. 78-80 FeM C-DRI offers are assessed at INR 14,100/MT (-250) ex-Durgapur, INR 12,600/MT (0) ex-Rourkela, INR 14,150/MT (+100) ex-Raipur and INR 13,750/MT (+50) ex-Bellary; change of prices depends upon weekly assessment.

2. 78-80 FeM P-DRI prices are assessed in the range of INR 12,550-14,350/MT across major markets.

3. 125×125 mm billet prices are evaluated at INR 22,500/MT (+50) in Durgapur, INR 21,600/MT (+50) in Rourkela, INR 22,600/MT (+300) in Raipur, INR 25,200/MT (+1,400) in Mumbai, INR 23,100/MT (-50) in Chennai and INR 24,000/MT (+1,000) in Hyderabad.

4. During the week Indian Iron ore prices were firm. However, in global market offers again increased to USD 81/MT, CNF China.

5. Pellet manufacturers in Raipur & Jharsugda have further cut prices by INR 100-200/MT. Offers fall in line with lull domestic demand. While, in the global market it gain by USD 3/MT to USD 103/MT, CNF China.

6. On weekly average basis, Pig iron prices rose by INR 200-800/MT in Central & East India due to limited supply and increase in export deals by large producers.

Week 52 outlook

1. Industry participants are anticipating, prices to remain strong because of better demand in both semis & long products.

2. Pellet prices may remain under pressure on anticipated fall in Iron ore prices and weak demand for the product.

3. Pig iron prices may further rise as supply is less and demand has strengthen in domestic & in the global market.

Raw material & Semis prices as on 17 Dec’16

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