During the week, Semis market reported price rise by INR 100-600/MT (upto USD 9) across major Indian markets except Durgapur where it slightly corrected by INR 50-100/MT. The reason behind is nil supply of finished steel to near by States due to cheaper offers provided by local suppliers in the respected States.
In the week – 4, trades were not healthy it was just minimal, according to the manufacturers.
Week – 4 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 14,700/MT (-100) ex-Durgapur, INR 14,400/MT +500) ex-Rourkela, INR 15,900/MT (+350) ex-Raipur and INR 15,650/MT (+100) ex-Bellary; change of prices depend upon weekly assessment.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 14,250-16,300/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 24,550/MT (-50) in Durgapur, INR 23,850/MT (+150) in Rourkela, INR 24,750/MT (+450) in Raipur, INR 27,100/MT (+300) in Mumbai, INR 25,800/MT (+450) in Chennai and INR 26,000/MT (+500) in Hyderabad.
4. Indian Iron ore & Pellet prices almost remained firm amid slight price rise in domestic sponge.
5. During the week, global Iron ore & pellet prices were also unaltered. Latest prices forIron ore are at USD 80-81/MT & Pellet at USD 97-98/MT; CNF China.
6. Pig iron market registered price movement of INR 500-700/MT in Central & East region. Trades were moderate due to less trade volume in billets.
Outlook for Week – 5
1. Semis prices are likely to remain volatile looking at strong raw material prices and unsupported re-bar demand.
2. Indian pellet prices may remain marginally change owing to stability in iron ore prices and subdued sponge trade activities.
3. There is less scope for further rise in pig iron prices looking at weak trades on higher prices, falling coking coal & scrap price in the global market and expected increase in pig iron supply in East India.
Raw material & Semis prices as on 21 Jan’17
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 27,100 | + 300 |
| Scrap HMS (80:20) | ex-Mumbai | 18,350 | + 350 |
| C-DRI 80 FeM | ex-Raipur | 15,900 | + 350 |
| P-DRI 80 FeM | ex-Raipur | 15,100 | + 600 |
| Pig iron Steel grade | ex-Raipur | 24,100 | + 600 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,600 | – 100 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 3,600* | 0 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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