India: Semi Finish Prices might remain Firm after a Volatile Week

Semi finish prices likely to remain firm after a volatile week. SteelMint learned that improved production of Sponge iron and Billet might keep demand and supply intact.

Other major highlights are:

Maharashtra: Prices remained firm last week as market observed new and high tariff of electricity. At Jalna productions have increased to 60% from earlier 40% owing to the increased demand. In Mumbai, prices remained firm, but in Jalna, Billet prices weakened by INR 500-800/MT W-o-W due to sales pressure. Scrap imports are still limited because of weak rupee.

North India: Mandi Gobindgarh has requested the state Government to reduce VAT to 3% and increase the entry tax so that import from other states can be restrained. However major manufacturers predict that VAT might reduce but entry tax will remain same. 

U.P: Production improves as power cut restores (electricity cut earlier were for 8 hrs now its prevailing 4 hrs). In Ghaziabad, Ingot prices strengthen by INR 150-200/MT W-o-W.

East India: Prices remain firm because of limited productions with shortage of power supply and low demand from North India. Prices marginally corrected by INR 100-200/MT.

Central India: Prices remain firm with improving Sponge iron's availability in the market. Market participants majorly talked about Raigarh increasing Ingot prices as price strengthen by INR 300/MT W-o-W where Raipur price weaken by INR 300/MT.  (Ingot prices increased in Raigarh by INR 300/MT W-o-W, whereas, in Raipur, its prices declined by INR 300/MT).

Sponge iron's availability increases in Raipur thanks to better supply of Iron ore from Odisha. On the other side, production of the material improved in Bellary (South Region).

Re-bar price: Indian re-bar prices remain firm as a result of increasing production. Re-bar prices were marginally corrected by INR 300-400/MT in Western India, while, in other places, prices remained firm.