During week 29, Indian semis offers moved down upto INR 700/MT. Major price corrections of INR 200-700/MT were seen in billet. While, sponge offers remained almost stable, with minute correction of upto INR 200/MT.
Induction furnace operators mentioned that it is tough to survive at current margins (conversion spread). Thus, they are avoiding to make any major price corrections. Moreover, market players are also anticipating that offers will fluctuate marginally, looking at bottomed out prices.
Pig iron offers were more or less similar in the week. Indian secondary Pig iron manufacturers are now aggressively waiting for NINL’s latest price circular. The company’s last price circular expired yesterday.
Week 29 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 11,300/MT (-200) ex-Durgapur, INR 10,500/MT (-150) ex-Rourkela, INR 12,100/MT (+200) ex-Raipur and INR 11,600/MT (0) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices fluctuated to INR 10,300-12,400/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 19,700/MT (-600) in Durgapur, INR 18,950/MT (-450) in Rourkela, INR 19,600/MT (-700) in Raipur, INR 21,400/MT (-100) in Mumbai and INR 21,500/MT (-500) in Hyderabad.
4. Indian iron prices remained stable in week 29. Global iron ore prices further rose by USD 4/MT to USD 59/MT, CNF China.
5. Indian iron pellet offers were unchanged to INR 3,000-5,150/MT ex-works.
6. Indian scrap offers were almost firm despite falling billet prices. However, imported scrap offers moved up on increasing Chinese billet offers and aggressive purchasing from Turkey.
Week 30 outlook
1. Despite sluggish demand, Indian semis prices may get some stability as prices have already bottomed out
2. Domestic Scrap offers may remain firm due to short supply of sponge and usual demand by induction operators. Imported scrap offers may remain strong as post Ramadan, global buying get active. Also, turkey’s purchase is supporting global scrap market.
3. Indian iron ore prices may get pressurized, if JSPL will get clearance to lift stock from it’s Sarda Mines.
4. Traders are anticipating that Pig iron prices in secondary market may remain under pressure, looking at ample availability of material.
Raw material & semis prices as on 16 Jul’16
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 21,400 | – 100 |
| Sponge CDRI 80 FeM | ex-Rourkela | 10,500 | – 150 |
| Sponge PDRI 80 FeM | ex-Raipur | 10,900 | 0 |
| Pig iron Steel grade | ex-Durgapur | 16,700 | – 150 |
| Scrap HMS (80:20) | ex-Mumbai | 15,650 | + 50 |
| Pellet Fe 63%, 6-20 mm | Barbil, loaded to wagons | 3,000 | 0 |
| Iron ore Fe 62%, 10-30 mm | ex-Mines, Joda | 2,000* | 0 |
Basic prices, all taxes will be applicable
*Incld Royalty, DMF & NMET
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