Week 27 ends with stability in semi finish prices across India. But, MS ingot/billet prices in scrap based markets like Chennai and Mumbai went down INR 600-700/MT.
Indian semi finish market in week 27 remained lull with no fluctuation in prices across major markets. However, sluggish demand coupled with selling pressure led to ingot/billet price correction in Chennai and Mumbai market this week.
Focus Points in Week 27
1. Sponge iron prices remained stable in range of INR 14,800-16,600/MT. Current offers in Bellary assessed at INR 15,600/MT (82+ FeM), Rourkela at INR 14,800/MT (80 FeM) and Raipur at INR 16,000/MT (80 FeM)
2. Imported scrap offers down by USD 4-5/MT to USD 265-270/MT, CFR Turkey. However, no offers were floated to India owing to confusion in BIS norms, which is now cleared and effective from 1 July’15
3. Billet production is in full swing post power supply problem sorted out in industries
4. RINL’s export tender for 70,000 MT bloom/billet supply especially for ASEAN, Middle East and African nations closed yesterday; no clarity has been received yet
5. Odisha based iron ore miners reduced iron ore lump prices by INR 200/MT and NMDC (Chhattisgarh) reduced ore prices by INR 100-300/MT for July’15 deliveries
6. China is marketing billet aggressively to global countries especially Turkey and Bangladesh
Week 28 Prospects
1. Billet supply likely to increase as production is full-fledged
2. Post BIS norms mandatory, imported scrap suppliers are concerned; import may decline
3. Sponge iron prices in central India may come down by INR 300-500/MT in near-term owing to fall in iron ore prices
4. Selling pressure on semi finish offers may increase further as long steel demand remained weak
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