Week 50 concluded on an improving note as semis prices across major markets recovered steeply by INR 500-1,100/MT; supported by improvement in demand from finished steel market coupled with anticipated imposition of safeguard duty.
Sponge prices rose sharply by INR 500-700/MT and billet by INR 600-1,200/MT in domestic market. While, Pig iron prices remained firm with minor corrections of INR 100-200/MT across major markets.
Week 50 dynamics
1. 78-80 FeM sponge iron prices assessed in Durgapur at INR 12,300/MT (+700), Rourkela at INR 11,250/MT (+500), Raipur at INR 12,600/MT (+300) and Bellary INR 12,000/MT (+200).
2. P-DRI prices hovered within INR 10,800-12,800/MT across major markets.
3. Billet price in Durgapur at INR 20,050/MT (+650), Rourkela at INR 19,500/MT (+900), Raipur at INR 20,600/MT (+1,100), Mumbai at INR 22,500/MT (+600) and Hyderabad at INR 23,000/MT (+1,200).
4. Imported South African lump offers for ready stock fell to USD 51-52/MT, CFR Kandla this week.
5. Raw iron pellet prices in central and south India declined by INR 150/MT. However, despite limited buying, pellet manufacturers in east India are unwilling to lower their offers.
6. Imported scrap offers remained firm in global market. Shredded scrap offers were assessed within USD 200-210/MT, CFR India.
Week 51 outlook
1. Semis prices are likely to be volatile on account of expected imposition of safeguard duty.
2. Improvement in pellet sponge prices may support iron pellet prices in near term.
3. Stability is likely to prevail in imported scrap market amidst pre-winter stocking by buyers due to Christmas eve and winter season.
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