Week – 1 Snapshot: Indian Semis Prices Surge

During the week, semis prices were increased up to INR 1,000/MT (USD 15). Anticipated price hike by large producers amid happening sentiments made trades healthy in the Indian market. During the week price increased for sponge by INR 100-500/MT & Billet up to INR 1,000/MT.

Week -1 dynamics

1. 78-80 FeM C-DRI offers are assessed at INR 15,000/MT (0) ex-Durgapur, INR 14,100/MT (+300) ex-Rourkela, INR 15,750/MT (+250) ex-Raipur and INR 15,700/MT (+450) ex-Bellary; change of prices depends upon weekly assessment.

2. 78-80 FeM P-DRI prices are assessed in the range of INR 14,000-16,500/MT across major markets.

3. 125×125 mm billet prices are evaluated at INR 24,950/MT (+350) in Durgapur, INR 24,000/MT (+250) in Rourkela, INR 24,600/MT (+300) in Raipur, INR 26,500/MT (+350) in Mumbai, INR 25,300/MT (+1,050) in Chennai and INR 26,000/MT (+750) in Hyderabad.

4. Iron ore prices surged – by Odisha miners up to INR 300/MT & NMDC (Chhatisgarh) by INR 125-140/MT for Jan’17 deliveries. Where as domestic pellet prices unaltered, except in South region where it increased by INR 400/MT W-o-W.

5. During the week, global Iron ore offers fall by USD 4/MT  to USD 76/MT CNF China.

6. Strong demand has further strengthen pig iron prices by INR 500/MT.

Outlook for Week – 2

1. Sources are anticipating, semis prices to remain volatile looking at subdued trade activities.

2. Pellet prices may slightly change as demand seems to be subdued in near term due to weaken global sentiments and volatile Indian sponge prices.

3. Anticipation of further hike in NINL pig iron prices, may result price surge by other medium size manufacturers based in Central & East India.

Raw material & Semis prices as on 07 Jan’17

Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research