Indian semi finish market in week 32 witnessed mixed sentiments. Central India based MS billet and sponge iron markets concluded the week on a improving note as prices lifted by INR 1,000/MT. However, other major markets remained almost stable with marginal correction.
Production curtailment by secondary semis manufacturers and improvement in global sentiments have created a positive environment in Indian domestic market; lifting billet and sponge prices.
Pig iron prices across major markets continued to be at the same level, though few major steel giants such as Neelachal Ispat, RSP and RINL had opened their pig iron offers with correction. However, Hyderabad market witnessed a slight price correction of INR 300/MT W-o-W.
Week 32 Key Points
1. Sponge iron price movement across major markets are Durgapur at INR 14,500/MT (78 FeM; + 100), Rourkela at INR 13,4000/MT (78 FeM; 0), Raipur at INR 15,500/MT (80 FeM; + 1,000) and Bellary INR 13,900/MT (78 FeM; – 200)
2. Billet prices were assessed in Durgapur at INR 22,200/MT (+ 300), Rourkela INR 21,700/MT (+ 300), Raipur INR 22,850/MT (+ 550), Mumbai INR 24,600/MT (+ 1,000) and Chennai INR 24,350/MT (+ 350)
3. Vizag Steel offered square billet (90*90 mm) to Nepal based re-rollers at USD 330-335/MT ex-Vizag- Sources
4. Neelachal Ispat reduced pig iron prices by INR 300/MT. INR 300/MT discount on bulk purchase of N1 grade of upto 2,000 MT, but no discount for N2 grade
5. Domestic iron ore prices continued to be stable
Week 33 Major Outlook
1. NINL has floated an export tender for total 110,000 MT billet and bloom with deadline on 12 Aug’15
2. Scrap importers are hopeful for improvement in demand and uptick in Chinese billet export offers
3. Semi finish prices are likely to be volatile as secondary manufacturers are running plants for limited hours
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