Week 26 concluded with declining semi finish prices across India; down upto INR 600/MT W-o-W.
Domestic semi finish market in week 26 witnessed deep correction in prices; sponge iron prices declined by INR 100-200/MT, MS ingot/billet by INR 100-300/MT and Pig iron by INR 200-300/MT. The major reasons behind price correction are sluggish demand amidst seasonal slowdown in construction & real state works and declining iron ore prices in the domestic market.
Week 26 Dynamics
1. Sponge iron prices this week hovered in the range of INR 14,400-16,800/MT. In Durgapur, C-DRI & P-DRI prices were down by INR 300/MT. Current offers in Bellary was assessed at INR 15,600/MT (82+ FeM), Rourkela at INR 14,800/MT (80 FeM) and Raipur at INR 16,000/MT (80 FeM)
2. MS billet prices hit 4-year low owing to sluggish demand and squeezed price gap between primary & secondary steelmakers. Prices hovered in the range of INR 24,000-27,800/MT. The material is offered at INR 26,400/MT and INR 25,000/MT in Chennai & Hyderabad respectively
3. Indian billet tender for 70,000 MT bloom/billet floated by Vizag Steel received poor response owing to low Chinese export offers
4. Rebar prices remained stable at INR 29,300/MT in Mumbai. While, it declined by INR 500/MT in Raipur
5. Maharashtra increases power tariff by 0.60-0.90 paisa/unit
6. Power supply problem in Central India (Raipur) resolved
7. Odisha based Iron ore miner reduced lumps prices by INR 300/MT, fines unchanged.
Week 27 Outlook
1. NMDC and few Odisha miners may reduce iron ore offers due to continuous fall in sponge prices
2. Although, pig iron prices are under pressure, it is likely to remain firm in coming week
3. Despite of BIS norms and subdued demand, correction in imported scarp offers is limited
4. RINL’s export tender for 70,000 MT bloom/billet especially for ASEAN, Middle East and African nations will be closed on 3 Jul’15
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