Semis prices across markets of India have gain momentum by INR 600-2,000/MT (USD 9-30); sponge by INR 600-1,300/MT & billet by INR 600-2,000/MT. The price rose as there was good demand for the materials.
The trade participants in the Industry reported, as the rebar demand is strong the merchant sellers for billet are less currently as most hot rolling mill operators are producing billet for own consumption to make rebar which has reduced billets supply in the open market.
Week – 11 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 16,900/MT (+850) ex-Durgapur, INR 16,100/MT (+800) ex-Rourkela, INR 17,800/MT (+600) ex-Raipur and INR 17,950/MT (+1,250) ex-Bellary. Price changes mentioned are weekly basis.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 16,200-18,400/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 25,400/MT (+700) in Durgapur, INR 24,950/MT (+1,000) in Rourkela, INR 26,200/MT (+850) in Raipur, INR 28,100/MT (+1,100) in Mumbai, INR 27,800/MT (+600) ex-Ahmedabad, INR 27,550/MT (+450) in Chennai and INR 28,000/MT (+2,000) in Hyderabad.
4. During the week pellet prices slumped in Central & East India, while it is unaltered in South region. In same line, Iron ore prices was also firm post increase up to INR 300/MT during the beginning of month.
5. In the week global Iron ore prices fall by USD 5/MT to USD 87/MT CNF China.
6. The Indian pig iron producers have surged prices by INR 200-700/MT owing to good demand in domestic & global market.
Outlook for Week – 12
1. Presently the trends are indicating further strong demand in Semis products. This may result surge in prices.
2. Indian pellet manufacturers may hike their prices, if the sponge iron prices get supported.
3. Slight price rise may remain notice in pig iron market as there is good demand. Also, recent hike in NINL prices have made strong sentiments in the market.
Raw material & Semis prices as on 11 Mar’17
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 28,100 | + 1,100 |
| Scrap HMS (80:20) | ex-Mumbai | 20,500 | + 200 |
| C-DRI 80 FeM | ex-Raipur | 17,800 | + 600 |
| P-DRI 80 FeM | ex-Raipur | 16,700 | + 650 |
| Pig iron Steel grade | ex-Raipur | 23,500 | + 300 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 5,250 | + 100 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 3,900 | 0 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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