During the week, Semis prices reported a fall up to INR 500/MT (USD 8); Sponge by INR 200-400/MT & Billet up to INR 500/MT. Subdued demand amid festivity, resulted price correction in semis products.
According to the manufacturers, on falling prices they were booked limited quantities due to anticipation for further hike prices on prevailing positive sentiments across the globe. The recent production cut by Chinese steel Industry have resumed positive trend in the international market.
Week – 2 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 14,750/MT (-350) ex-Durgapur, INR 13,900/MT (-300) ex-Rourkela, INR 15,550/MT (-250) ex-Raipur and INR 15,550/MT (-250) ex-Bellary; change of prices depends upon weekly assessment.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 14,300-16,000/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 24,700/MT (-400) in Durgapur, INR 23,650/MT (-350) in Rourkela, INR 24,300/MT (-400) in Raipur, INR 26,500/MT (0) in Mumbai, INR 25,350/MT (+50) in Chennai and INR 25,500/MT (-500) in Hyderabad.
4. Indian Iron ore & Pellet prices were almost remained firm. Pellet manufacturers reported limited trade activities on firm prices.
5. During the week, global Iron ore prices increase by USD 5/MT to USD 81/MT and Pellet offers were unaltered at USD 97/MT; CNF China.
6. NINL has increased pig iron prices by INR 1,500/MT to INR 23,000/MT (USD 338) ex-plant, Odisha. After fresh price declaration by NINL, other manufacturers in Central & East India hold offers on increased prices by INR 500-700/MT W-o-W.
Outlook for Week – 3
1. Manufacturers are assuming price rally looking at peak season for construction activities amid non-festive period.
2. Less scope for price correction in Indian pellets due to rising Iron ore prices in both Indian domestic & in the global market. Trade sources also believe about strong demand in near term.
3. Pig iron manufacturers in Central, East & South India may hike prices nearly by INR 1,000/MT, once billet demand to get supported. Also, recent hike in NINL prices is a major factor for the further price rise.
Raw material & Semis prices as on 13 Jan’17
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 26,500 | 0 |
| Scrap HMS (80:20) | ex-Mumbai | 18,000 | – 200 |
| C-DRI 80 FeM | ex-Raipur | 15,550 | – 250 |
| P-DRI 80 FeM | ex-Raipur | 14,500 | – 300 |
| Pig iron Steel grade | ex-Raipur | 23,700 | + 700 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,700 | – 100 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 3,600* | 0 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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