Seasonal low production, high raw material (Sponge iron/Scrap) prices and low inventory supports present manufacturers’ offer. However, low finish demand from past 3-4 days pan India may pull down the prices, market source believes.
Pig Iron: Prices across the country remain unchanged from a week’s time as export sales remain stagnant. Market source reported, prices to remain at same level as production remain high. Prices from last few weeks in Raipur is stood at INR 25,500/MT.
MS Ingot/Billet prices remain high across India by INR 500-800/MT W-o-W.
Central India manufacturer said, “Sponge iron demand from Raipur & Rourkela to Maharashtra has improved. Amid the Supreme Court decision, furnace manufacturers had continued to buy Sponge iron at high prices.”
Mumbai based Ingot manufacturer stated, “Scrap buying from Dubai has increased in past week. Therefore, high raw material purchase will not bring the prices down at sudden.”
In Gujarat, shortage of Scrap had increased prices by INR 200-300/MT on daily basis that shot up the MS Ingot/Billet & Re-bar prices by INR 900/MT in a week.
Secondary Re-bar: Across the country, Re-bar & Structure trade volume remain stagnant from Friday (i.e 02 May, 2014) onward. Market sources believe that Re-bar prices likely to decline but shortage of semi finish and high Sponge iron prices supports semi finish & finished steel offers at this moment.
Primary Re-bar: Primary producers have increased the finish Long prices by INR 800-1,200/MT for May’14 amid low inventory and improved retail demand.
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