Indian Semis Offers Move Down during Week 27

During the week, semis market reported price corrections of INR 300-700/MT. Sponge prices weakened by upto INR 300/MT and billet by upto INR 700/MT. As per market participants, offers reduced due to higher number of sellers amid anticipated price corrections.

In-line, Pig iron offers had also slumped by upto INR 1,000/MT (USD 15). NINL had also cut down prices by INR 1,000/MT. Similarly, central India based manufacturers cut offers by INR 600-800/MT to compete with NINL price.

Week 27 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 11,250/MT (-250) ex-Durgapur, INR 10,400/MT (-100) ex-Rourkela, INR 11,950/MT (-300) ex-Raipur and INR 11,950/MT (+250) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices fluctuated to INR 10,200-12,400/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 20,100/MT (-350) in Durgapur, INR 19,400/MT (-700) in Rourkela, INR 20,500/MT (-650) in Raipur, INR 22,000/MT (-600) in Mumbai, INR 21,900/MT (-600) in Chennai and INR 22,000/MT (-500) in Hyderabad.
4. Iron prices were unchanged during week 27, post price reduction in the last week by Odisha based few big miners by INR 100-150/MT. While, in global market offers move up by USD 3/MT to USD 54/MT CNF China.
5. Indian pellet offers marginally changed by INR 100/MT amid poor sales. Current offers are in the range of INR 3,000-4,800/MT (basic) in domestic market.

Week 28 outlook
1. Semis prices are likely to remain under pressure over subdued buying interest.
2. Global scrap offers may fluctuate further on pursuing Ramadan festival.
3. Traders are assuming that Pig iron prices in domestic market will also come down in near days.

Raw material & semis prices as on 2 Jul’16

Basic prices, all taxes will be applicable
*Incld Royalty, DMF & NMET