No improvement has been reported in week 48 as semi finish makers remained under pressure and reduced prices sharply by INR 500-1,000/MT W-o-W. Sponge iron prices at pan India declined by INR 450-700/MT this week. While, billet market remained stable across India, except in north and east India as prices in these regions fell steeply by INR 750-1,050/MT W-o-W.
In addition, NINL reduced prices this week by INR 700/MT and other Pig iron makers followed suit and reduced prices by INR 200-500/MT.
Week 48 key points
1. 78-80 FeM sponge iron prices assessed in Durgapur at INR 11,400/MT (-700), Rourkela at INR 10,800/MT (-550), Raipur at INR 12,450/MT (-450) and Bellary INR 12,150/MT (-450).
2. P-DRI prices across major markets hovered in the range of INR 10,400-12,700/MT.
3. Billet price in Durgapur at INR 19,000/MT (-1,050), Rourkela at INR 18,450/MT (-750), Raipur at INR 19,500/MT (-250), Mumbai at INR 21,600/MT (-100), Chennai at INR 20,000/MT (-250) and Hyderabad at INR 21,500/MT (-100).
4. NMDC reduced iron ore lump prices by INR 300-360/MT and ROM by INR 260/MT owing to reduced dispatches, but kept fines prices unaltered.
5. Pellet prices fell by upto INR 350/MT with major drop in east India.
6. Imported scrap offers remained firm in global market. Shredded scrap offers were assessed within USD 205-210/MT, CFR India.
Week 49 outlook
1. Pressure is likely to remain on semis manufactures amid lull trade activities.
2. Following NMDC’s price cut, other Odisha based miners may reduce lump offers in near term.
3. Western India pellet prices may decline owing to cheaper imported lump offers.
4. 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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