Current Week Update: Uncertain Price Movements in Indian Semis

During the current week, mix price change have been assessed in Indian semis products. In the week, sponge prices registered price movement of INR 100-400/MT, where as billet market registered price change of INR 1,000/MT. Manufacturers added that on price fluctuations, sales were bearish amid lack of clarity for market outlook.

Current week dynamics

1. 78-80 FeM C-DRI offers are assessed at INR 15,100/MT (+350) ex-Durgapur, INR 13,800/MT (+100) ex-Rourkela, INR 15,550/MT (-50) ex-Raipur and INR 15,250/MT (+150) ex-Bellary; change of prices depends upon weekly assessment.

2. 78-80 FeM P-DRI prices are assessed in the range of INR 13,400-16,000/MT across major markets.

3. 125×125 mm billet prices are evaluated at INR 24,600/MT (+250) in Durgapur, INR 23,750/MT (-100) in Rourkela, INR 24,300/MT (-300) in Raipur, INR 26,000/MT (-1,000) in Mumbai, INR 24,250/MT (-650) in Chennai and INR 25,250/MT (-750) in Hyderabad.

4. Essel mining in Odisha has surge Iron ore prices by INR 125-275/MT for Jan’17 rest of miners yet to declare fresh offers. Where as pellet prices surge up to INR 400/MT in large markets.

5. During the week, global Iron ore & Pellet prices inched up by USD 1-2/MT.
Current offers for Pellet at USD 104/MT & Iron ore (Fe 63.5) at USD 80/MT (CNF China).

6. During the week, Pig iron prices in Central & East India rose by approx INR 500/MT owing to strong demand and less supply for the material.

Coming Week outlook

1. According to the market players, semis prices likely to remain supported looking at strong sentiments amid no selling pressure to the manufacturers.

2. Pellet prices may slightly change on anticipated increase supply for the material.

3. Strong demand & less supply may further support Indian Pig iron market.

Raw material & Semis prices as on 30 Dec’16

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