During the week semis prices was volatile as prices of both sponge & billet reported price movement by INR 100-600/MT in across India; major price change have seen in South & Western India by INR 400-600/MT. Analyzing the trade activities it was affected in the week – 6 due to elections in North India and declaration of union budget in the country.
Week – 6 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 14,150/MT (-100) ex-Durgapur, INR 14,000/MT (0) ex-Rourkela, INR 15,650/MT (+150) ex-Raipur and INR 14,900/MT (-500) ex-Bellary; change of prices depend upon weekly assessment.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 13,700-15,600/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 23,500/MT (+50) in Durgapur, INR 22,850/MT (-150) in Rourkela, INR 24,050/MT (-250) in Raipur, INR 25,800/MT (-400) in Mumbai, INR 24,900/MT (-450) in Chennai and INR 24,750/MT (-600) in Hyderabad.
4. Odisha based miners have kept offers unaltered for Feb’17. While, for the same NMDC in Chhattisgarh has raised its prices in the range of INR 85-185/MT. Although, pellet prices slightly fell in Jharsugda & Bellary by INR 150-200/MT owing to fall in sponge prices.
5. Global Iron ore & pellet prices were unaltered due to new year holidays in the China.
6. During the week, Pig iron prices fell in East India up to INR 700/MT. Lull trades amid increased supply in the region have resulted prices corrections. Moreover, in other major markets like in Central & South India, the manufacturers have maintained offers on same levels.
Outlook for Week – 7
1. Weak sentiments across the globe may result further price pressure in the semis manufacturers.
2. Indian pellet prices may remain slightly change looking at limited price change in Iron ore for the present month and marginal price movement in sponge market.
3. Indian domestic pig iron prices may fall further owing to sharp decline in global coking coal & scrap prices and also lull trades in the both global as well Indian domestic market.
Raw material & Semis prices as on 04 Feb’17
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 25,800 | – 400 |
| Scrap HMS (80:20) | ex-Mumbai | 18,550 | + 50 |
| C-DRI 80 FeM | ex-Raipur | 15,650 | + 150 |
| P-DRI 80 FeM | ex-Raipur | 14,400 | – 100 |
| Pig iron Steel grade | ex-Raipur | 24,100 | 0 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,500 | 0 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 3,400* | 0 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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