Semi finish price get oxygen last week over limited production and sudden demand across Mandi's . Presently all participant eye on Eastern and Western India semi finish prices.
Prices of MS Ingot in Mandi Gonbindgarh, that is considered as benchmark price, increase marginally up by Rs 50-100/MT, due to Eastern and Western belt supply continue to dominate the local producer price. “If material viability from Raipur and Durgapur slow down we expect market to increase by Rs 500-700/MT from present level” said an integrated steel plant owner located in Mandi.
Eastern market, Raipur's up by Rs 700/MT W-o-W and Durgapur up by Rs 500/MT W-o-W giving positive sentiments to other mandi's price. Scrap shortage in North India (due to low import feasibility and low domestic scrap) support sponge price and demand.
Billet supply from East/Central India (Durgapur, Raipur and Raigarh) continued to dominate the North India's local manufacturer prices. Prices in this region are up by Rs 500-800/MT W-o-W. “However if the trend continue we might see the Eastern price stable and some uplift in North India price. As viability to supply North at present price is not there” said Billet manufacturer based in Raipur.
Sponge prices increase sharply in Dugapur and Raipur as prices are up by Rs 400-700/MT W-o-W. In contrary South market remain quite but participant believe higher prices in coming week due to shortage of Iron pellet in the region.
Re-bar trader remain cautious as mill owners increased prices by Rs 500-800/MT in end of the last week. Prices in Western India, Mumbai showed improvement by Rs 300/MT W-o-W whereas, prices in North India higher by Rs 800/MT as buying remain strong in NCR region. A trader based in North India said, “Low inventory at retail end lifted the price, we expect to remain strong due to low production”
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