Week 6 concluded downward mode as semi finish steel prices across major Indian markets sharply reduced by upto INR 1,100/MT. After imposition of minimum import price (MIP), ingot/ billet prices surge by INR 1,800-2,500/MT, which is now on the reverse and almost touched previous weeks levels.
Raipur, Durgapur, Rourkela, Mumbai & Ahmedabad are major market where prices for billet, sponge & melting scrap corrected by INR 600-1,100/MT in a week’s time.
However, Pig iron offers in secondary market up due to increased offers by primary players namely NINL, SAIL & RSP by upto INR 700/MT. By viewing on sharp price fall in sponge & billet, market participants are expecting to see some correction in the pig iron offers too in the next week.
Week 6 dynamics
1. Current 78-80 FeM sponge iron (C-DRI) prices prevailing in Durgapur at INR 12,700/MT (-800), Rourkela at INR 11,800-12,000/MT (-100), Raipur at INR 13,400/MT and Bellary at INR 12,100-12,300/MT (+250).
2. Howering, Pellets sponge (P-DRI) prices hovered in the range of INR 11,600-12,600/MT in the market.
3. Billet price movements are INR 20,950/MT (-850) ex-Durgapur, INR 20,700/MT (-50) ex-Rourkela, INR 21,500/MT (-300) ex-Raipur, INR 23,000/MT (-1,000) ex-Mumbai and INR 23,500/MT (-500) ex-Hyderabad.
4. Imported scrap offers slightly gain; offer assessed HMS 80:20 at USD 190-195/MT and shredded at USD 205-210/MT, CFR India.
5. NMDC kept iron ore prices unchanged for Feb’16 deliveries.
6. Imported South African lump offers to India moved up amid increasing global iron ore prices and stood at USD 54-56/MT, CFR Kandla for march delivery.
Week 7 outlook
1. Expected fall in raw material prices i.e. Scrap & Sponge and poor demand in finished products may further fall Ingot/billet prices in large amount.
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