Indian semi finish market reported high volatility in prices this week. MS billet prices fluctuated by INR 500-1,800/MT and sponge merely by INR 100-300/MT in a week’s duration.
Market reacted on rumors of MIP on imported scrap along with transport strike in north India, led to high fluctuations in prices. Also, secondary manufacturers increased offers, following primary manufacturers’ second consecutive hike. However, low demand couldn’t support high price.
On the other side, Pig iron prices were stable through out the week as primary Pig iron manufacturers, NINL had recently opened its prices with no price corrections.
Week 7 dynamics
1. Current 78-80 FeM sponge iron prices prevailing in Durgapur at INR 13,150/MT (+450), Rourkela at INR 11,800/MT (+100), Raipur at INR 13,300/MT (-100) and Bellary at INR 11,950/MT (50).
2. Meanwhile, P-DRI prices hovered in the range of INR 11,150-12,400/MT in the market.
3. Billet price movements are INR 22,050/MT (+1,050) ex-Durgapur, INR 22,500/MT (+1,000) ex-Raipur, INR 21,350/MT (+650) ex-Rourkela, INR 24,800/MT (+1,800) ex-Mumbai and INR 24,000/MT (+500) ex-Hyderabad.
4. Imported scrap offers were unaltered; assessed HMS 80:20 at USD 190-195/MT and shredded at USD 205-210/MT, CFR India.
5. Barbil pellet prices reduced to INR 2,600-3,000 level from previous INR 3,200/MT level (loaded to wagon).
6. Odisha iron ore miners kept prices stable.
Week 8 outlook
1. Rise in semis prices will sustain for short duration, if demand will be unsupportive.
2. Imported scrap prices are expected to remain firm as there is no selling pressure in global market.
3. There less chances of price revision by Odisha based iron ore miners.
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