During week 45 Indian semis prices gain sharply in line with better demand & higher raw material prices.
Indian semis manufacturers cheered up in week-45 as prices for both the products increased – Billet by INR 500-1,500/MT & Sponge by INR 300-750/MT across major producing States. Higher price rise for Sponge & Billet have seen in South & Central India for sponge by INR 600-750/MT & billet by INR 700-1,500/MT.
Pig iron price movement almost remained stable in Raipur, Hyderabad & Ludhaina. However, in Durgapur & Giridih it increased by INR 500/MT on rising met coke & billet prices. NINL, which known as price trend decider for Indian pig iron market is likely to declare fresh prices in the next week.
Week 45 Dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 14,500/MT (+300) ex-Durgapur, INR 13,100/MT (+400) ex-Rourkela, INR 14,700/MT (+600) ex-Raipur and INR 14,500/MT (+750) ex-Bellary; changes of prices depends upon weekly assessment.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 12,800-15,350/MT across major markets.
3. 100×100 mm billet prices are evaluated at INR 22,050/MT (+550) in Durgapur, INR 21,550/MT (+500) in Rourkela, INR 22,500/MT (+1,500) in Raipur, INR 24,000/MT (+1,100) in Mumbai, INR 23,550/MT (+650) in Chennai and INR 23,500/MT (+1,250) in Hyderabad.
4. Iron ore prices were firm in both India domestic & global market. Current global offers are assessed USD 64-65/MT, CNF China.
5. Indian Pellet offers were marginally changed in Central and West India by INR 100-200/MT amid subdued demand. Domestic offers for Fe 63% pellets are prevailing at INR 3,850-5,800/MT (US$ 57-85) ex-works and global at US$ 88/MT, CNF China.
6. During the week scrap offers in West & South India surge by INR 300-700/MT due to shortage & rising sponge prices.
Week 46 outlook
1. It is anticipated that semis prices may remains strong due to expensive raw materials and improved demand. However, sluggish finish steel sales are a major concern for semis price improvement.
2. Domestic pellet offers may fluctuate amid rollover Iron ore prices.
4. Secondary pig iron manufacturers may slightly increase offers on rising met coke & billet prices.
Indian domestic raw material and semis prices as on 05 Nov’16
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 24,000 | + 1,100 |
| Scrap HMS (80:20) | ex-Mumbai | 16,600 | + 350 |
| C-DRI 80 FeM | ex-Raipur | 14,700 | + 600 |
| P-DRI 80 FeM | ex-Raipur | 13,750 | + 800 |
| Pig iron Steel grade | ex-Raipur | 21,300 | – 200 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,700 | + 100 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 3,300* | 0 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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