Indian Semis prices surge further during the week 15; specifically sponge by INR 100-550/MT and billet up to INR 2,000/MT (USD 30), W-o-W.
In the week major price gain in billet have seen in Ahmedabad by INR 2,000/MT followed by Mumbai at INR 1,600/MT & Rourkela at INR 1,150/MT. While, in sponge prices majorly surge in Durgapur by INR 550/MT & in Rourkela by INR 400/MT.
In the first half of Week 15 the trade activities were marginal, in second half of the week it picked up . Thus, the prices remained on northwards mode.
Week – 15 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 17,900/MT (+550) ex-Durgapur, INR 17,000/MT (+400) ex-Rourkela, INR 18,500/MT (0) ex-Raipur and INR 18,600/MT (+300) ex-Bellary. Price changes mentioned are weekly basis.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 16,700-19,000/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 27,550/MT (+950) in Durgapur, INR 27,050/MT (+ 1,150) in Rourkela, INR 28,200/MT (+100) in Raipur, INR 30,500/MT (+1,600) in Mumbai, INR 30,400/MT (+2,000) ex-Ahmedabad, INR 29,100/MT (+600) in Chennai and INR 29,500/MT (+500) in Hyderabad.
4. During the week, Indian Iron ore & Pellet prices almost remained firm.
5. As there were predictions about correction in Iron ore prices in Australia. This has resulted price fall in international market; Iron ore by USD 4/MT & pellet by USD 1-2/MT. The prices are assessed – Iron ore 62% Fe at USD 75/MT & pellets (6-20 mm) at USD 97/MT; CNF China.
6. Pig iron prices surge up to INR 500/MT in Central & INR 500-1,000/MT in East India due to sharp increase in Australian Coking coal price. The manufacturers in East India mentioned, on increased prices trade activities remain bearish as smelters majorly preffer substitute products.
Outlook for Week – 16
1. The prices of semis prices may remain supported as demand expected to grow further amid little inventories with the manufacturers.
2. Indian pellet prices to be volatile further as demand is average in the domestic & global market.
3. Indian pig iron prices may remain upsurge due to rising coking prices in the global market.
Raw material & Semis prices as on 08 Apr’17 (Week-15)
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 30,500 | + 1,600 |
| Scrap HMS (80:20) | ex-Mumbai | 22,300 | + 550 |
| C-DRI 80 FeM | ex-Raipur | 18,500 | 0 |
| P-DRI 80 FeM | ex-Raipur | 17,300 | 0 |
| Pig iron Steel grade | ex-Raipur | 24,000 | + 150 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 5,400 | – 100 |
| 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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