Week 25 Concludes with Price Correction in Semi Finish Market

Major semi finish markets witnessed correction in prices, expect in South, where prices increased by upto INR 400/MT in week 25.

Week 25 has concluded with a steep price correction of upto INR 1,000/MT in major Indian semi finish markets. In a week, MS ingot prices declined by INR 250-650/MT, billet by INR 300-1,000/MT and sponge upto INR 500/MT. Prices corrected to these levels as semi finish demand was not supportive post mid-June.

However, prices in South market increased by upto INR 400/MT W-o-W. MS ingot and billet prices here surged by INR 300/MT in a week. Also, 77 FeM P-DRI prices rose by INR 100/MT in Hyderabad; assessed at INR 14,700/MT.

Week 25 Highlights

1. Sponge iron prices this week hovered in the range of INR 15,000-17,400/MT. In Durgapur, C-DRI & P-DRI prices went down by INR 600/MT. Current offers in Bellary assessed at INR 15,900/MT (82+ FeM), Rourkela at INR 15,500/MT (80 FeM) and Raipur at INR 17,200/MT (82+ FeM)
2. MS billet prices hovered in the range of INR 24,500-27,000/MT. The material was offered at INR 26,300/MT and INR 25,800/MT in Chennai and Hyderabad respectively
3. Chinese billet export offers fell by USD 5-10/MT because of low demand and piling up of inventory at Chinese mills
4. Major fall in rebar prices by INR 800/MT and INR 1,500/MT in Western (Mumbai) and Central (Raipur) markets respectively was recorded

Week 26 Prospects

1.Hike in custom duty is unlikely to impact Indian semi finish market
2.Odisha iron ore miners may reduce prices, as per sources
3.Sources reported long steel prices are likely to be under pressure in coming week due to low buying interest from buyers and hope for further fall in prices
4. Two major steelmakers, RINL & MMTC floated tenders with cumulative quantity of 70,000 MT billet/bloom & 22,000 MT concast billet respectively, whose deadline date is in week 26

MS Billet/Bloom Tenders in June’15

Source: SteelMint Research