In week 1 of 2016, semi finish price rally continued as prices across major markets jumped sharply by INR 500-1,600/MT. Price hike was supported by positive domestic market sentiments amid anticipated imposition of MIP on steel products.
Sponge iron prices moved up by INR 400-1,000/MT and billet by INR 900-1,600/MT in a week. Meanwhile, few primary Pig iron manufacturers also increased prices by INR 500/MT.
Week 1 major dynamics
1. 78-80 FeM sponge iron prices as on 31 Dec’15 were assessed in Durgapur at INR 13,700/MT (+1,050), Rourkela at INR 12,500/MT (+400), Raipur at INR 14,300/MT (+800) and Bellary at INR 12,900/MT (+300).
2. Meanwhile, P-DRI prices hovered in the range of INR 11,950-13,350/MT in domestic market.
3. Billet was offered in Durgapur at INR 22,700/MT (+1,650), Rourkela at INR 22,050/MT (+1,450), Raipur at INR 23,300/MT (+1,200), Mumbai at INR 24,700/MT (+1,200) and Hyderabad at INR 24,400/MT (+900) as on 31 Dec’15.
4. Iron ore prices remained stable this week.
5. Pellet prices moved up in Barbil by INR 300/MT to INR 3,300 /MT (loaded to wagons).
6. Imported scrap prices remained firm at USD 190-195/MT for HMS and USD 205/MT for shredded scrap.
Week 2 major prospects
1. There are limited offers for imported scrap in market and it is expected that prices may remain firm in next 15 days.
2. Odisha miners may revise iron ore prices next week. Market participants expect increase in iron ore lump prices, but reduction in fines prices.
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