Indian Semis prices remain on downward mode over bearish trades for domestic as well for exports. In the week 19 the prices for sponge fall further by INR 500-1,500/MT (USD 8-23) while, billet upto INR 2,000/MT (USD 30).
The Industry participants mentioned, the sellers were quite aggressive to sell out material looking at rigorously fall in prices. This situation persists for across semis to long steel products.
Week – 19 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 15,750/MT (-450) ex-Durgapur, INR 14,800/MT (-1,000) ex-Rourkela, INR 16,500/MT (-700) ex-Raipur and INR 15,600/MT (-1,500) ex-Bellary. Price changes mentioned are weekly basis.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 14,300-16,300/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 24,650/MT (-1,150) in Durgapur, INR 24,000/MT (-1,500) in Rourkela, INR 24,350/MT (-1,950) in Raipur, INR 26,850/MT (-1,950) in Mumbai, INR 27,800/MT (-800) ex-Ahmedabad, INR 27,100/MT (-400) in Chennai and INR 26,000/MT (-2,000) in Hyderabad.
4. Pellet prices fell again in Indian market by INR 100-300/MT due to lull exports and low purchase by domestic sponge manufacturers. Although, Iron ore prices were remain firm during the week.
5. In the week, Global Iron ore prices hit 8 months low level as it fell by USD 8/MT W-o-W and stood at USD 60/MT CNF China.
6. Pig iron prices down approximately INR 1,000/MT (USD 15) in East & North and INR 200/MT in Central region following the steep prices corrections on billet which in turn lull purchase for pig iron.
Outlook for Week – 20
1. There is anticipation about further fall in semis prices; manufacturers are under selling pressure and also there is no hope to boost in demand analyzing globally weak sentiments.
2. Indian pellet manufacturers may further pressurize to cut prices as there is no demand for the material in the domestic & global market.
3. Indian pig iron manufacturers may be reluctant to cut prices as weak demand remain in the domestic market and also there is no fresh export deal for the material which may increase supply in the domestic market.
Indian Raw material & Semis prices as on 6 May (Week 19)
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 26,800 | -1,050 |
| Scrap HMS (80:20) | ex-Mumbai | 21,000 | -500 |
| C-DRI 80 FeM | ex-Raipur | 16,500 | -700 |
| P-DRI 80 FeM | ex-Raipur | 15,150 | -750 |
| Pig iron Steel grade | ex-Raipur | 24,900 | -150 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,800 | -250 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 3,950 | 0 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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