Domestic semi finish prices have declined by INR 200-700/MT in major markets.
Pan India semi finish market has been witnessing a downturn in prices since few weeks. At an average, semi finish prices have corrected by INR 200-700/MT in major domestic market.
MS billet prices in secondary market opened in red after correction by INR 200-600/MT last week. Sources reported that buyers are skeptical at current prices. In addition, market sentiments seem to be negative along with low trade volume.
On 18 May’15, MS billet prices in Durgapur are assessed at INR 25,700/MT (- 750), Mumbai at INR 27,400/MT (- 600), Ahmedabad at INR 27,200/MT (- 200), Raipur at INR 25,200/MT (- 800) and Chennai at INR 27,100/MT (- 450). Prices are basic with W-o-W change.
Sponge Iron Makers Hold Iron Ore Buying
Buying activities of Chhattisgarh based manufacturers remained weak in Odisha in anticipation of further fall in prices and increase in premium on NMDC’s DR CLO. Market participants expect that iron ore prices will fall further by INR 200-400/MT in order to compete with iron pellet prices.
Meanwhile, iron pellet production remained low in Chhattisgarh. Only few sellers are selling the material at INR 5,950-6,000/MT. Similarly in West Bengal, iron pellet offers are assessed at INR 5,300-5,500/MT.
A sponge manufacturer based in Kolkata stated, “In this volatile market, we prefer to purchase iron pellets as we can buy the material in small quantities.”
Sponge Iron Production in Odisha to Increase
In Odisha, market participants expect that supply of sponge iron will increase as many miners, who got permission to re-open mines, also have sponge units such as TP Sao, KJS Ahulawalia, KN Ram, etc.
Rebar Conversion Remains at INR 3,300-4,200/MT, Indicates Average Buying
In finished long steel, rebar prices have declined by INR 500-700/MT W-o-W, though demand remained moderate, reported a stockist based in North, Central and West India. Present conversion spread of 12 mm rebar from MS ingot in Mumbai and Durgapur is analyzed at INR 3,300/MT and in Raipur at INR 4,200/MT.
Raw Material & Semi Finish Prices as on 18 May’15
| Place | C-DRI (FeM) | W-o-W | P-DRI (FeM) | W-o-W | HMS Scrap | W-o-W | MS Ingot | W-o-W | MS Billet | W-o-W |
| Mandi | 20,000 (78+) | – 100 | 18,100 (78+) | – 500 | 21,250 | – 250 | 29,000 | – 650 | 29,650 | – 250 |
| Raipur | 17,700 (82+) | – 850 | 15,200 (82+) | NA | 20,450 | 0 | 24,700 | – 750 | 25,200 | – 800 |
| Durgapur | 17,600 (78) | – 300 | 15,300 (78) | – 750 | 20,950 | – 150 | 25,500 | – 700 | 25,700 | – 750 |
| Hyderabad | 17,800 (82) | – 200 | 15,500 (77) | 0 | 20,800 | + 500 | 26,700 | – 300 | 26,700 | – 300 |
Prices in INR/MT
Source: SteelMint Research
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