Semi finish price remained volatile this week as Sponge iron remains firm whereas MS Ingot and Billet witnesses volatile market, Mumbai price up by Rs 700/MT but prices in Raipur/Gaziabad weaken by Rs 200-300 W-o-W. This week price is likely to remain range bound as market participant believe price are bottom out and may increase any time.
The week's highlights are –
1) Sponge Iron prices remain at same level due to limited production and firm demand from North India. Sponge price in Mandi witness downtrend as Rourkela were aggressive to supply material.
2) Scrap shortage continues to remain in North India that show improvement in prices. Imported scrap prices see a trigger as Dubai increased offer by $10/MT on improved buying. Bhavnagar scrap prices increased by Rs 500/MT W-o-W due to increased demand.
3) This week also Re bar prices may remain range bound similar to last week as value chain product remain unchanged. Last week 12MM Re-bar prices in Mumbai gained by Rs 300-400 whereas Raipur fell by only Rs 100/MT.
4) East India continue to supply MS Ingot/Billet to North India at discounted price by Rs 700-800/MT. For example Mandi MS Billet offered by local manufacturer are at Rs 31,600(Basic, Payment regular) but Bhilai (near Raipur) Billet is sold to Mandi at Rs 30,600-800/MT (Basic, Payment Advance, FOR Mandi including CST and Freight)
Freight from East India to North India are:
Rourkela TO Mandi Gobindgarh: Rs 3000/MT
Raipur/Bhilai TO Mandi Gobindgarh : Rs 2800-3000/MT
Raigarh TO Gaziabad: Rs 2200/MT
Durgapur TO Jaipur/Bhiwadi: Rs 1600/MT
Durgapur TO Mandi Gobindgarh : Rs 2800-3000/MT
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