Week 29 Ends with High Pressure on Manufacturers of Semis

Indian semi finish market witnessed sharp price correction in week 29 amidst lull domestic market and weak global sentiments.

Week 29 concluded with sharp downturn of upto INR 1,400/MT in semi finish prices pan India. Subdued demand, coupled with weak global sentiments, amid China’s low pricing strategy has led to sharp decline in domestic prices. Billet prices plunged by INR 1,000-1,400/MT and sponge iron by INR 500-900/MT in central and eastern markets, while, south market remained almost stable.

Week 29 Key Points

1.C-DRI prices hovered in the range of INR 13,500-16,800/MT. Current offers in Bellary are assessed at INR 15,400/MT (82+ FeM), Rourkela at INR 13,800/MT (80 FeM) and Raipur at INR 15,000/MT (80 FeM)
2.MS billet prices were assessed in the range of INR 22,600-25,800/MT
3.Domestic iron ore prices remained stable. In addition, Chinese iron ore (Fe 63%) prices remained firm at USD 50/MT, CFR China amid limited trade activities
4.Imported scrap offers went down USD 5-10/MT as China is continuously offering low-priced MS billet across the globe

Week 30 Outlook

1.Semi finish prices are likely to be under pressure over weak sentiments across the globe
2.Iron ore prices may correct slightly amidst weak demand in domestic market
3.Albeit Pig iron prices are currently stable, manufacturers are likely to be under pressure as RSP (SAIL’s unit) opened its Pig iron offers with price correction of INR 500/MT
4.Imported scrap prices may stabilize as Chinese mills have started to reduce their production. Moreover, countries such as Bangladesh, Pakistan, Indonesia, Turkey will become active now that Ramdan festival has come to an end