Semi Finish Prices likely to remain Volatile by INR 200-500/MT – Indian Manufacturers

Indian semi finish prices have corrected slightly by INR 200-500/MT in last 1-week.

Market sources say low production by 30-50% in most of the market likely to keep MS Ingot/Billet prices at current level of INR 28,500-32,500/MT. With minor fluctuation of INR 200-300/MT, Indian Sponge iron prices are at the level of INR 20,000-22,000/MT.

In central India (Raipur & Raigarh), availability of Pellet sponge has increased owing to re-opening of big units, which were mostly under maintenance in Aug’14. This in turn has declined Pellet sponge prices by INR 500/MT W-o-W. 

In contrary, Pellet sponge manufacturers based in eastern region (West Bengal & Odisha) shared, “Amid increase in Pellet prices, we reluctant to reduce offers, as high Coal prices already reduce our profit margins.”

Meanwhile, Pig iron prices are continuously declining on the grounds of low cost and increased availability of substitute product, pooled iron, which is available through auction by primary producers. Currently, Pooled iron is available at cheaper rates by INR 2,000-3,000/MT than Pig iron. In last 10-15 days, Pig iron offers have fallen by INR 800/MT to INR 23,000-24,500/MT in central & eastern India

Market players believe that steel prices have limited scope of further major fluctuation, as mills are running below 60% capacity.

Semi Finish & Finished Long Steel Prices with M-o-M Changes