During week 46 Indian semis prices witnessed movement upto INR 1,400/MT (US$ 20).
Indian semis manufacturers worried on currency demonetization as trades got halted. During the week prices were volatile- Billet by INR 500-1,400/MT and Sponge by INR 100-800/MT.
In week 46, Pig iron price were almost remained firm in Central, East & South India amid sharp increase in coking coal prices. Coking coal offers are currently at USD 322-323/MT CFR India, which was at US$ 277-278/MT on 1st Nov’16.
Week 46 Dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 13,700/MT (-800) ex-Durgapur, INR 13,000/MT (-100) ex-Rourkela, INR 14,650/MT (+150) ex-Raipur and INR 15,000/MT (+100) ex-Bellary; changes of prices depends upon weekly assessment.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 12,650-15,300/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 21,500/MT (-500) in Durgapur, INR 21,200/MT (-300) in Rourkela, INR 22,800/MT (+400) in Raipur, INR 24,700/MT (+700) in Mumbai, INR 23,550/MT (0) in Chennai and INR 25,000/MT (+1,400) in Hyderabad.
4. During the week Indian domestic Iron ore prices were firm. While, global offers surge by US$ 15/MT to US$ 80/MT, CNF China. Global iron prices have increased in line with rise in coking coal prices & strong demand by Chinese steel mills.
5. Indian Pellet offers had increased in South, East & West India by INR 100-400/MT on rise of domestic sponge and global iron ore & pellet prices. Currently, domestic pellet offers are prevailing at INR 3,850-6,100/MT (US$ 57-91) ex-works and global at US$ 93/MT, CNF China.
Week 47 outlook
1. According to the sources, semis trades may remains poor due to currency demonetization. This may directly impact the manufacturers margins.
2. Domestic pellet offers may remains slightly change amid weak trades & rising global prices.
3. Rising coking coal prices may not support Indian pig iron market. According to the producers prices may remains slightly change as buying poor on volatile semis prices.
Indian raw material and semis prices as on 12 Nov’16
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 24,700 | + 700 |
| Scrap HMS (80:20) | ex-Mumbai | 16,500 | – 100 |
| C-DRI 80 FeM | ex-Raipur | 14,650 | + 150 |
| P-DRI 80 FeM | ex-Raipur | 13,800 | + 150 |
| Pig iron Steel grade | ex-Raipur | 21,400 | + 100 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,800 | + 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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