With beginning of Jan’17, Indian semis prices showed downward trend due to bearish trade activities in the domestic market.
In Jan’17 Month to date (MTD), prices fell for both sponge & billet by INR 500-800/MT in Central, East India & South India. Moreover, In Dec’16 the trade activities was fruitful which led surge in prices for sponge up to INR 1,000/MT & billet by INR 1,200-1,500/MT compared with volatile price movement in Nov’16.
During current month (Jan’17), global and Indian domestic sentiments are not positive. Manufacturers in the East & West India who sells sponge & billet in global market (export) have not got any bookings in the Jan’17. As learned selling pressure has increase gradually this kept prices under pressure during Jan’17.
Although, in Dec’16, market trends were positive as export trades were healthier, in the month, the medium & large scale manufacturers in West (Gujarat) & East India (Odisha & West Bengal) reported bulk bookings for billet to South East Asian countries like – Indonesia, Vietnam, Philippines & Thailand at the price range of USD 400-410/MT FOB.
While, in the same time duration sponge export deals were being concluded for Nepal, Bangladesh & Srilanka by Odisha & West Bengal based manufacturers at the tentative price of USD 240-245/MT FOB (80 FeM C-DRI lump, bag packing).
In outlook for Feb’17, Industry participants are believes; price to remain volatile in the semis products looking at upcoming elections across north-east parts of India. Thus, purchase inquiries for semis as well finished steel products from the respected regions are affected.
While for a short duration, there is also a positive note in the market as the Union Budget going to be announced in the coming month and the Industry experts believe it will be a happening moment for the Indian Steel Industry.
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