Indian Semis prices fell steeply in the week 17 by INR 900-1,900/MT (USD 13-29), W-o-W.
During the week, major price fall in billet was seen in Rourkela by INR 1,650/MT followed by Raipur at INR 1,400/MT & Chennai at INR 1,350/MT. While in sponge, prices were corrected in Bellary, South region by INR 1,900/MT.
The prices slump over weak trades in finished steel which in turn reflected in low sales of semis products. The Industry participants mentioned, as the price were downward, the manufacturers were aggressive to sell material at buyers offers.
Week – 17 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 16,700/MT (-950) ex-Durgapur, INR 15,800/MT (-1,100) ex-Rourkela, INR 17,100/MT (-1,100) ex-Raipur and INR 16,700/MT (-1,900) ex-Bellary. Price changes mentioned are weekly basis.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 15,400-17,600/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 26,200/MT (-1,100) in Durgapur, INR 25,500/MT (-1,650) in Rourkela, INR 26,100/MT (-1,400) in Raipur, INR 28,400/MT (-1,100) in Mumbai, INR 28,600/MT (-300) ex-Ahmedabad, INR 27,550/MT (-1,350) in Chennai and INR 28,000/MT (-1,000) in Hyderabad.
4. Indian pellet prices fell in the range of INR 100-600/MT owing to weak domestic demand and falling imported lump prices.
5. The prices of key raw material in global market remain downward owing to bearish future outlook; Iron ore by USD 1-2/MT & pellet by USD 9/MT. The prices are assessed – Iron ore 62% Fe at USD 67/MT & pellets (6-20 mm) at USD 84/MT; CNF China.
6. Following the slump in Indian billet & global Coking coal prices, the domestic Pig iron market also came under pressure which in turn resulted in decline in prices- East region by INR 500-1,000/MT & North region by INR 1,000-1,500/MT. However, in the other parts it remained unaltered.
Outlook for Week – 18
1. Indian semis prices may remain under pressure as lull trade activities gradually mounting inventories with the manufacturers.
2. Indian pellet prices may fall further as sellers aggressive due to lull exports and limited bookings by domestic sponge makers. Domestic Iron ore prices are also anticipated to fall for May’17 deliveries owing to downward trend in Indian pellet & sponge prices.
3. Indian pig iron prices are likely to fall further due to decline in global coking coal, scrap & Indian billet prices.
Indian Raw material & Semis prices as on 22 Apr (Week 17)
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 28,400 | – 1,100 |
| Scrap HMS (80:20) | ex-Mumbai | 21,200 | – 1,300 |
| C-DRI 80 FeM | ex-Raipur | 17,200 | – 1,000 |
| P-DRI 80 FeM | ex-Raipur | 15,900 | – 1,050 |
| Pig iron Steel grade | ex-Raipur | 25,000 | – 100 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 5,150 | – 50 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 4,300 | 0 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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