During week 32, Indian semis trade was quite supportive as both sponge and billet offers increased by upto INR 600/MT. Major price rise of INR 300-600/MT was seen in south India for both sponge and billet. As per trade sources, offers gained due to prevailing positive sentiments in the market like MIP extension and shutdown of plants by Raipur based ingot/billet manufacturers.
Pig iron offers by large manufacturers reduced by upto INR 2,000/MT for Aug’16 deliveries. However, secondary manufacturers are yet in wait & watch mode, looking at average trade activities at current offers.
Week 32 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 12,200/MT (+250) ex-Durgapur, INR 11,250/MT (+450) ex-Rourkela, INR 12,400/MT (0) ex-Raipur and INR 12,300/MT (+600) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices increased to INR 10,500-13,000/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 19,750/MT (+200) in Durgapur, INR 19,200/MT (+450) in Rourkela, INR 20,050/MT (+250) in Raipur, INR 21,400/MT (+200) in Mumbai, INR 21,550/MT (0) in Chennai and INR 21,400/MT (+400) in Hyderabad.
4. Iron ore prices rolled over by Odisha and Chhattisgarh based miners. While, offers in international market increased by USD 2/MT to USD 61/MT (CNF China) owing to increasing steel prices.
5. Pellet offers in domestic market rose by around INR 200/MT due to increasing imported lump offers, strong Indian sponge offers and less number of merchant sellers for pellet, especially in east India. Current offers are prevailing at INR 2,900-5,300/MT ex-works.
6. Melting scrap offers in domestic and global market were volatile amid subdued trade activities.
Week 33 outlook
1. Indian semis offers are likely to be fluctuate further, looking at production cut in central, east and west India.
2. Iron ore prices in domestic market may remain firm on account of seasonal low production and strong sponge offers, which may balance Indian iron prices at current offers.
3. Indian secondary Pig iron manufacturers may slightly reduce their offers due to steep prices corrections by large manufacturers and ingot/billet production cut.
Snapshot of Indian raw material and semis prices as on 06 Aug’16
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 21,400 | + 200 |
| Sponge CDRI 80 FeM | ex-Rourkela | 11,200 | + 450 |
| Sponge PDRI 80 FeM | ex-Raipur | 11,350 | – 50 |
| Pig iron Steel grade | ex-Durgapur | 16,200 | – 250 |
| Scrap HMS (80:20) | ex-Mumbai | 15,300 | – 250 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 3,550 | + 250 |
| Iron ore Fe 62%, 10-30 mm | ex-Mines, Joda | 1,800* | 0 |
Basic prices, all taxes will be applicable
*Incld Royalty, DMF & NMET
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