During the week, semis prices reported a fall by INR 100-500/MT in across major Indian markets; billet prices highly plunged in Roukela, Mumbai, Ahmedabad & Chennai by INR 300-500/MT. While, sponge saw a major fall in Rourkela & Bellary by INR 300-500/MT. Moreover, in Durgapur sponge prices slightly uptick due to less availability of C-DRI on logistic issue to source Iron ore from Odisha.
According to market participants, trade activities were bearish in the perusing week due to ongoing election season in North India amid little trading in finished steel products.
Week – 7 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 14,450/MT (+300) ex-Durgapur, INR 14,300/MT (-300) ex-Rourkela, INR 15,400/MT (-250) ex-Raipur and INR 14,400/MT (-500) ex-Bellary; change of prices depend upon weekly assessment.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 13,800-15,100/MT across major markets.
3.125×125 mm billet prices are evaluated at INR 23,350/MT (-150) in Durgapur, INR 22,350/MT (-500) in Rourkela, INR 23,850/MT (-150) in Raipur, INR 25,500/MT (-300) in Mumbai, INR 25,200/MT (-500) ex-Ahmedabad, INR 24,450/MT (-450) in Chennai and INR 24,500/MT (-250) in Hyderabad.
4. During the week Indian Iron ore & pellet prices were unaltered in Central & East India.
5. Post new year holidays, the Chinese market opens with sharp gain in prices owing to better physical trades. The fresh prices for Iron ore 62% Fe are assessed at USD 87/MT & pellets (6-20 mm) at USD 96/MT; CNF China.
6. In the week – 7, Pig iron prices further fall up to INR 1,000/MT (USD 15) in Central & East India. Falling billet prices amid Lull domestic & export demand have pull down Indian pig iron prices.
Outlook for Week – 8
1. Industry participants are anticipating further slight price change in the semis market looking at sluggish trade activities amid resume positive trend in the global market.
2. Indian pellet prices are likely remain on same levels as the large manufacturers resume exports for the material. This may balance demand & supply chain for pellets.
3. Strengthen global coking coal & scrap prices are likely to remain slightly change Indian pig iron prices.
Raw material & Semis prices as on 11 Feb’17
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 25,500 | – 300 |
| Scrap HMS (80:20) | ex-Mumbai | 15,700 | + 150 |
| C-DRI 80 FeM | ex-Raipur | 15,400 | – 150 |
| P-DRI 80 FeM | ex-Raipur | 14,250 | – 150 |
| Pig iron Steel grade | ex-Raipur | 23,300 | – 800 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,700 | 0 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 3,600* | 0 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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