Semis offers during week 36 were rising constantly amid healthy trades.
During the week, Indian sponge and billet prices rose significantly on the grounds of improved demand for both semis & finished steel products and also rising prices of all key raw materials. Prices of sponge increased by INR 500-1,000/MT and billet by INR 500-1,200/MT.
Pig iron manufacturers in Raipur, Durgapur and Giridih further raised offers by INR 1,000-1,400/MT due to better demand and rising coking coal prices. NINL may also hike domestic offers for Sep’16 deliveries, traders are anticipating.
Week 36 dynamics
1. 78-80 FeM C-DRI offers assessed at INR 13,050/MT (+500) ex-Durgapur, INR 12,000/MT (+700) ex-Rourkela, INR 13,300/MT (+850) ex-Raipur and INR 12,850/MT (+550) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices increased to INR 11,300-13,500/MT across major markets.
3. 125×125 mm billet prices evaluated at INR 20,400/MT (+650) in Durgapur, INR 19,800/MT (+950) in Rourkela, INR 20,600/MT (+1,150) in Raipur, INR 22,400/MT (+500) in Mumbai, INR 22,400/MT (+600) in Chennai and INR 22,100/MT (+700) in Hyderabad.
4. Iron ore prices in both domestic and global market unaltered in week 36. NMDC today declared fresh offers with firm offers for Sept’16 deliveries.
5. Domestic pellet offers further moved up by INR 100-300/MT owing to rising exports.
6. Melting scrap offers in west and south regions fluctuated by INR 200-300/MT on account of rising sponge offers.
Week 37 outlook
1. Semis prices may remain volatile by around INR 500/MT, looking at subdued trade activities at increased prices.
2. Pellet offers in domestic market may remain strong as most of the large manufacturers are offering material for export only.
3. NMDC has rolled over prices for the current month. Odisha miners have also kept prices unchanged as of now and it is expected that they may also follow the suite and maintain prices at similar levels.
4. Indian Pig iron offers may remain strong. Rising coking coal prices and boost in export may support manufacturers to keep offers at positive side.
5. Scrap prices may fluctuate further due to higher sponge offers and subdued trade activities.
Indian raw material and semis prices as on 03 Sep’16
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 22,400 | + 500 |
| Scrap HMS (80:20) | ex-Mumbai | 15,400 | + 100 |
| -C-DRI 80 FeM | ex-Raipur | 13,350 | + 850 |
| -P-DRI 80 FeM | ex-Raipur | 12,250 | + 1,000 |
| Pig iron Steel grade | ex-Raipur | 18,500 | + 1,300 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,000 | + 200 |
| Iron ore Fe 62%, 10-30 mm | ex-mines, Joda loaded to wagon | 2,550* | 0 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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