Semis prices in the Indian domestic market were volatile in this week. Billet prices in mid of the week at across major markets were increased by INR 400-500/MT, whereas in the end of week price fell by approx INR 200-400/MT. In same line, sponge prices also fluctuated by INR 200-600/MT pan India. Primary producer has increase finish long and flat steel price consecutively for Mar’16 by INR 1,200/MT.
This price volatile assesed due to un-supported finish Rebar sales, in which there was minor price fluctuation in the whole week.
However, Pig iron prices in central & east market gain by INR 300-600/MT on tight ingot/billet offers and increased prices by primary player namely NINL by INR 300/MT.
Week 9 highlights
1. Current 78-80 FeM sponge iron prices are prevailing in Durgapur at INR 12,600/MT (-600), Rourkela at INR 11,800/MT (-150), Raipur at INR 13,150/MT (-250) and Bellary at INR 12,300/MT (+600). Price change is weekly
2. Meanwhile, P-DRI prices hovered in the range of INR 11,300-12,600/MT in the market.
3. Billet price movements are INR 22,000/MT (-100) Durgapur, INR 22,750/MT (0) ex-Raipur, INR 21,500/MT (0) ex-Rourkela, INR 24,300/MT (-200) ex-Mumbai and INR 24,500/MT (+500) ex-Hyderabad.
4. Imported scrap offers remains on positive mode; HMS (80:20) offers are at USD 200/MT and shredded at USD 215-217/MT, CFR India.
Week 10 prospects
1. Semis prices likely to remains volatile, however if rebar demands become supportive, prices may gain.
2. Looking at present demand and supply. Imported scrap is expected to rise further. However, depreciating Rupee will be a constraint.
3. Iron ore dispatch will increase as Serajuddin mines will resume mining.
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