Indian semi finish market in week 30 continued its asymmetrical price correction across major markets. However, sponge iron manufacturers resisted price fall by maintaining the same levels; except INR 400/MT price cut in Durgapur.
MS ingot/billet producers remained under immense pressure due to dwindling demand from semi finish and finished markets. Price movements at major domestic markets are; Durgapur at INR 22,400/MT (- 1,000), Rourkela INR 22,000/MT (- 600), Raipur INR 22,800/MT (- 650), Mumbai INR 24,000/MT (- 500) and Chennai INR 25,450/MT (- 350).
Week 30 Dynamics
1. Sponge iron price movement – Bellary at INR 15,300/MT (82+ FeM), Rourkela at INR 13,800/MT (80 FeM) and Raipur at INR 15,000/MT (80 FeM) with no price correction. However, Durgapur market witnessed downfall of INR 400/MT in C-DRI prices
2. Neelachal Ispat reduced pig iron prices by INR 700/MT. INR 200/MT discount on bulk purchase of N1 grade of upto 7,000 MT, but no discount for N2 grade
3. Domestic iron ore prices remained stable owing to transporters strike in Odisha since last 5 days. While, imported lump offers to India declined by USD 2/MT
4. Low-priced Chinese billet led to further decline of USD 5-10/MT in imported scrap offers despite sluggish demand
5. Spreading monsoon, shrinking construction activity and pending projects have hindered the finished demand. Thus, rebar prices dipped by upto INR 800/MT
Week 31 Prospect
1. MS ingot/billet and sponge market continued to be under pressure over seasonal slowdown. Secondary mills are likely to shutdown
2. Indian pig iron offers may correct further as global prices fell USD 20/MT in a week
3. Imported scrap prices may stabilize as Turkey and other nations’ manufacturers took position in market post Ramadan coupled with Chinese spot iron prices improved slightly amidst new stringent pollution norms in China
4. MMTC floated a tender for appointment of Wet Lease Conversion Agent for Concast mild steel billet with deadline 28 Jul’15
Note: All price corrections are W-o-W basis.
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