Indian Semis Prices Further Increase in Week-12

Indian Semis prices consecutively increase in Week-12 by INR 800/MT (USD 12). The price rise was seen in same proportion in both sponge & billet.

Currently, there are less merchant sellers for billet as large share of manufacturers are producing material (billet) for self consumption owing to strong finished steel demand.

Week – 12 dynamics

1. 78-80 FeM C-DRI offers are assessed at INR 17,250/MT (+350) ex-Durgapur, INR 16,300/MT (+200) ex-Rourkela, INR 18,600/MT (+800) ex-Raipur and INR 18,250/MT (+300) ex-Bellary. Price changes mentioned are weekly basis.

2. 78-80 FeM P-DRI prices are assessed in the range of INR 16,200-18,400/MT across major markets.

3. 125×125 mm billet prices are evaluated at INR 26,100/MT (+700) in Durgapur, INR 25,250/MT (+250) in Rourkela, INR 26,900/MT (+700) in Raipur, INR 28,000/MT (0) in Mumbai, INR 27,800/MT (0) ex-Ahmedabad, INR 28,000/MT (+400) in Chennai and INR 28,500/MT (+500) in Hyderabad.

4. Following the price hike in Iron ore by Odisha miners up to INR 400/MT, the pellet manufacturers also increase prices by INR 100-300/MT in Central & East India.

5. In the week global Iron ore prices strengthened by USD 5/MT to USD 92/MT CNF China. The prices are volatile since the beginning of Mar’17.

6. The Pig iron producers in Central & East India further raise prices by INR 100-200/MT to INR 23,600-24,000/MT & INR 22,000/MT ex-plant, respectively. Price surge is in line with substantial strong demand.

Outlook for Week – 13

1. Semis prices may report mix trend as it is already on higher range. This has made buyers cautious.

2. Indian pellet prices may remain strong following increase in iron ore & sponge prices.

3. Indian pig iron prices likely to find stability at current levels on anticipated mix price trend in sponge, billet & scrap prices.

Raw material & Semis prices as on 18 Mar’17 (Week-12)

Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research