Semi finish prices witnessed a sharp decline across major Indian markets owing to sluggish global offers coupled with monsoon.
Week 28 remained dull for semi finish manufacturers as prices across major Indian markets declined sharply amidst a fall in global offers and sluggish domestic demand. Sponge iron and ms billet prices across India corrected by around INR 500/MT in last 4 days. Pig iron prices remained stable.
Week 28 Highlights
1. Sponge iron prices hovered in the range of INR 14,300-16,300/MT. Current offers in Bellary are assessed at INR 15,550/MT (82+ FeM), Rourkela at INR 14,700/MT (80 FeM) and Raipur at INR 16,300/MT (80 FeM)
2. MS billet prices are similar in central, southern and western India, however generally there is price difference of INR 1,200-1,500/MT
3. Despite sharp correction in semi finish, no bulk deals were booked
4. Domestic iron ore prices remained stable. While, Chinese iron ore prices are up by USD 2/MT; traded Fe 62% fines at USD 49.9/MT, CFR China after touching 10 year low at USD 44.1/MT this week.
5. Imported scrap offers slumped by USD 20/MT W-o-W post PSIC norms mandatory
Week 29 Prospects
1. MS billet prices in Indian market to remain under pressure, market participant expects price to fall by INR 500-7,000/MT in near-term owing to declining global billet offers. Sources says secondary manufacture will also cut production by 20-30%
2. No expectation of price hike because of seasonal slowdown in finish sales
3. Despite sharp fall in imported scarp offers, there is limited buying interest in the market. Thus, it is anticipated prices may decline further
4. Albeit, pig iron prices have been stable since last three weeks, market participants expect marginal price correction in week to come
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