Sluggish demand and ongoing monsoon hit Indian long steel market as no bulk buyers are available at present circumstances.
In present state of affairs, Indian long steel market is tussling with lack of bulk material buyers owing to subdued demand during ongoing monsoons. Albeit, prices of input material like iron ore and coal, including sponge iron are declining persistently, buyers are not purchasing material in bulk as they are hopeful for further correction in prices. This in turn has put manufacturers under pressure.
Low conversion cost and stagnant sales have emerged as a setback for long steel makers. As a result, manufacturers are preferring to operate plants at 40-60% capacity. Looking at overall scenario, it seems that if this situation persists for long-term, makers may face several hurdles.
In a week, domestic scrap prices have declined majorly in Hyderabad by INR 900/MT and Durgapur by INR 450/MT. Also, sponge iron prices have corrected in major market; Durgapur down INR 150/MT (78 FeM) and Raipur INR 200/MT (82+ FeM). While, 78 FeM C-DRI offers in Rourkela went up INR 100/MT and 82+ FeM remained stable in Bellary and Hyderabad. All-embracing, semi finish market remained dull with minor fluctuation in prices.
Raw Material & Semi Finish Prices as on 2 July’15
| Place | C-DRI (FeM) |
W-o-W | P-DRI (FeM) |
W-o-W | HMS Scrap |
W-o-W | MS Ingot |
W-o-W | MS Billet |
W-o-W |
| Mandi | 19,400 (78+) | – 100 | 17,300 (78+) | – 100 | 20,550 | + 100 | 28,400 | + 100 | 28,600 | + 100 |
| Raipur | 16,700 (82+) | – 200 | 14,250 (82+) | NA | 20,200 | + 500 | 24,700 | + 300 | 25,150 | + 200 |
| Durgapur | 15,450 (78) | – 150 | 13,400 (78) | – 200 | 19,150 | – 450 | 24,700 | + 400 | 24,950 | + 300 |
| Hyderabad | 16,800 (82) | – 50 | 14,500 (77) | – 100 | 18,100 | – 900 | 25,000 | – 500 | 25,000 | – 500 |
Prices in INR/MT
Source: SteelMint Research
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