During the current week, Indian semis prices were on significant rising mode as it surge up to INR 1,500/MT (USD 23). The price rise are as follows – billet by INR 700-1,500/MT & sponge by INR 900-1,300/MT. According to the trade participants, demand was healthy amid strong prices of raw materials in the both Indian domestic & global market as well.
They further added, limited inventories of semis & long products is an additional plus point for the suppliers as there was no selling pressure and so strong sentiments in the domestic market.
Week – 8 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 15,500/MT (+1,050) ex-Durgapur, INR 14,600/MT (+900) ex-Rourkela, INR 16,700/MT (+1,300) ex-Raipur and INR 15,450/MT (+1,050) ex-Bellary. Prices changes mentioned are weekly basis.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 14,700-15,800/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 24,100/MT (+750) in Durgapur, INR 23,500/MT (+1,150) in Rourkela, INR 25,150/MT (+1,300) in Raipur, INR 26,300/MT (+750) in Mumbai, INR 26,200/MT (+1,500) ex-Ahmedabad, INR 25,550/MT (+1,100) in Chennai and INR 25,500/MT (+800) in Hyderabad.
4. Following the price hike in sponge, Indian pellet prices rose by INR 100-400/MT. While,domestic Iron ore prices were unaltered during the week.
5. During the week, key raw materials in global market gain momentum – Iron ore by USD 3/MT & pellet by USD 7/MT. The fresh prices for Iron ore 62% Fe are assessed at USD 90/MT & pellets (6-20 mm) at USD 103/MT; CNF China.
6. In the week, Pig iron prices fell by INR 500-1,000/MT (USD 7-15) despite spike in billet prices. The traders & manufacturers reported weak sales with rise in inventory levels.
Outlook for Week – 9
1. Semis prices are likely to remain strong as demand is supported & prices of raw materials are on higher side.
2. Indian pellet manufacturers may remain uptick prices owing to rising exports amid strong demand by Indian sponge manufacturers.
3. Pig iron manufacturers may again cut prices over falling global coking coal prices and weak demand in the both Indian domestic & global market against over supply for the material.
Raw material & Semis prices as on 18 Feb’17
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 26,300 | + 750 |
| Scrap HMS (80:20) | ex-Mumbai | 19,500 | + 700 |
| C-DRI 80 FeM | ex-Raipur | 16,700 | + 1,300 |
| P-DRI 80 FeM | ex-Raipur | 15,550 | + 1,350 |
| Pig iron Steel grade | ex-Raipur | 23,000 | – 600 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,900 | + 400 |
| 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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