The price rally continuous in Indian semis market as during the week 13 prices of sponge further gain by INR 300/MT and billet up to INR 1,100/MT (USD 17), W-o-W.
The prices increase as there was good demand for all products amid prevailing positive trends in the market. Thus, the price increase continuous in the running week too.
Week – 13 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 17,150/MT (0) ex-Durgapur, INR 16,600/MT (+300) ex-Rourkela, INR 18,700/MT (+300) ex-Raipur and INR 18,250/MT (0) ex-Bellary. Price changes mentioned are weekly basis.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 16,600-18,600/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 26,100/MT (+100) in Durgapur, INR 25,700/MT (+400) in Rourkela, INR 27,300/MT (+400) in Raipur, INR 28,400/MT (+400) in Mumbai, INR 28,450/MT (+650) ex-Ahmedabad, INR 29,100/MT (+1,100) in Chennai and INR 29,000/MT (+500) in Hyderabad.
4. Indian pellet demand further strengthens during the week 13, hence the prices surge again by INR 200-500/MT across India except South. Moreover, Iron ore prices were remain.
5. The week saw global Iron ore prices plunged by USD 8/MT & pellet by USD 4/MT. The fresh prices are assessed – Iron ore 62% Fe at USD 84/MT & pellets (6-20 mm) at USD 97/MT; CNF China.
6. Following the higher prices of substitute products amid strong demand, pig iron prices further surge up to INR 500/MT in Raipur, Durgapur, Hyderabad & Ludhiana.
Outlook for Week – 14
1. Industry participants are assuming Semis prices to be volatile further looking at higher price ranges, subdued trades and slight price corrections in global market.
2. Indian pellet prices are likely to remain on positive note as demand is good by domestic & global buyers as well.
3. There is less scope for further major price change in Pig iron as smelters turn to more melting other substitute products like scrap, CPC & ferroshots as well.
Raw material & Semis prices as on 25 Mar’17 (Week-13)
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 28,400 | + 400 |
| Scrap HMS (80:20) | ex-Mumbai | 21,400 | – 150 |
| C-DRI 80 FeM | ex-Raipur | 18,700 | + 300 |
| P-DRI 80 FeM | ex-Raipur | 17,650 | + 400 |
| Pig iron Steel grade | ex-Raipur | 23,750 | + 150 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 5,600 | + 200 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 4,300 | 0 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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