Semi finish price had a mix trend last week as Sponge iron prices remain firm whereas MS Ingot and Billet weaken by Rs 400-500/MT.
North India witnesses major correction as trade in Bhiwadi, Gaziabad, and Muzzafarnagar were down by Rs 700-900/MT W-o-W. Raigarh that supply MS Ingot/Billet to North India also witnesses price correction of Rs 900-1100/MT W-o-W in MS Ingot.
This week price may go up marginally as stocks are drying out at stockiest end, and low production will trigger up the demand and supply gap as SteelMint learned from the market participants.
The week's highlights are –
1) Sponge Iron prices marginally down by Rs 200-300/MT W-o-W as low production balances the demand and supply. However Sponge Iron demand that was coming from North India takes a back seat over improved imported scrap availability.
2) Scrap availability improved marginally over Bhavnagar price correction by Rs 600/MT W-o-W and lower Dollar value against Rupee that has increased imported scrap viability. Present offer of Alang scrap is Rs 22700/MT and UK/Europe shredded scrap are offered at US$370/MT (Rs 22,200). Prices are likely to remain positive.
3) This week Re bar production hit hard as many rolling mill prefer to go to maintenance rather than to produce Re-bar as demand is very poor. As being learned Jalna rolling mill association has shifted to night production and production is near to 35-40%. Similarly pan India production is around 30-40%, as last week again price touch raw bottom at Rs 29,600/MT (Basic, Ex-Raipur) that is down by Rs 400-500/MT W-o-W
4) East India supply of MS Ingot/Billet to North India came at halt as freight increased by Rs 300-400/MT over last week that made viability equal to local supplier's offers.
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