Semis prices in across India except South region have registered fall by INR 300-1,000/MT (USD 5-15); sponge by INR 300-600/MT & billet by INR 300-950/MT.
However, in South region the prices surge – sponge in Bellary by INR 400/MT & billet by INR 400/MT in Chennai.
In the beginning of Week – 10, the trade activities and prices were supported. However, after the speculation of sharp fall in prices by large producers, there was negative sentiments in the market and thus, prices registered steep fall. Although later in week to come it is confirmed that the producers have raise prices by INR 500-1500/MT for long steel products for Mar’17 deliveries.
Week – 10 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 16,050/MT (-600) ex-Durgapur, INR 15,300/MT (0) ex-Rourkela, INR 17,200/MT (-300) ex-Raipur and INR 16,700/MT (+400) ex-Bellary. Price changes mentioned are weekly basis.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 15,300-17,100/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 24,550/MT (-550) in Durgapur, INR 23,900/MT (-600) in Rourkela, INR 25,300/MT (-950) in Raipur, INR 27,000/MT (-200) in Mumbai, INR 27,100/MT (-450) ex-Ahmedabad, INR 27,100/MT (+400) in Chennai and INR 26,000/MT (-500) in Hyderabad.
4. Indian pellet prices further gain by INR 100-300/MT following the price rise of Iron ore up to INR 300/MT for Mar’17 deliveries. The prices surge in line with strong demand by sponge manufacturers and global buyers as well.
5. During the week global Iron ore & pellet prices were slightly fluctuate. The fresh prices are assessed – Iron ore 62% Fe at USD 91/MT & pellets (6-20 mm) at USD 103/MT; CNF China.
6. Strong demand from domestic & global market has further strengthen Indian pig iron prices. The prices were uptick by INR 200-500/MT in Central & East India.
Outlook for Week – 11
1. Semis prices are likely to be volatile further as buyers are skeptical about purchase looking at high price levels. Moreover, the trade participants mentioned sales may decrease (through CST billing) as the coming Holi festival will negatively affects transportation.
2. Indian pellet manufacturers may keep prices strong as demand is supportive for the product.
3. Amid hiked price by Central & East India based manufacturers, the traders are aggressively waiting for NINL’s fresh domestic price which is anticipated to increase. So, there are speculations about further surge in domestic pig iron prices.
Raw material & Semis prices as on 04 Mar’17
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 27,000 | – 200 |
| Scrap HMS (80:20) | ex-Mumbai | 20,300 | + 600 |
| C-DRI 80 FeM | ex-Raipur | 17,200 | – 300 |
| P-DRI 80 FeM | ex-Raipur | 16,050 | – 400 |
| Pig iron Steel grade | ex-Raipur | 23,200 | + 200 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 5,350 | + 250 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 3,900 | + 300 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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