Semis offers in week 38 increased by INR 700-1,400/MT.
During the week 38, trades were healthy as prices for both billet & sponge rose by INR 700-1,400/MT across India. According to market participants, improved demand and rising raw materials prices are supporting Indian semis market.
Pig iron manufacturers also raised their offers by INR 1,200-1,800/MT (USD 18-27/MT) following the price rise of billet & key fuel i.e. Coking coal. According to traders, NINL may open fresh offers in the coming week with increase prices.
Week 38 dynamics
1. 78-80 FeM C-DRI offers were assessed at INR 13,700/MT (+550) ex-Durgapur, INR 13,200/MT (+1,000) ex-Rourkela, INR 14,500/MT (+1,050) ex-Raipur and INR 14,100/MT (+1,050) ex-Bellary. Price changes indicated are weekly.
2. 78-80 FeM P-DRI prices increased to INR 12,400-14,800/MT across major markets.
3. 125×125 mm billet prices were evaluated at INR 21,400/MT (+1,000) in Durgapur, INR 21,000/MT (+900) in Rourkela, INR 21,500/MT (+1,050) in Raipur, INR 23,400/MT (+700) in Mumbai, INR 23,550/MT (+900) in Chennai and INR 23,500/MT (+1,400) in Hyderabad.
4.Essel mining in Odisha raised Iron ore prices by INR 20-250/MT; others may follow suit. However, in the global market offers were lowered by USD 4/MT to USD 55/MT (CNF China).
5. Domestic pellet offers were up by INR 50-300/MT on improved demand and increased sponge prices.
6. Melting scrap offers moved up by INR 400-1,000/MT on increased semis prices.
Week 39 outlook
1. Increasing raw material prices and seasonal improved demand indicate that semis offers may remain strong, Industry experts mentioned.
2. Indian Pellet manufacturers may raise offers on increasing iron ore & sponge prices.
3. Indian Pig iron offers may further increase because of rising coking coal prices and less availibility in domestic market amid strong demand.
4. Higher sponge offers may support Indian scrap prices in near term as smelters are looking to melt more scrap instead of high cost sponge iron.
Indian raw material and semis prices as on 17 Sep’16
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 23,400 | + 700 |
| Scrap HMS (80:20) | ex-Mumbai | 16,100 | + 600 |
| -C-DRI 80 FeM | ex-Raipur | 14,500 | + 1,050 |
| -P-DRI 80 FeM | ex-Raipur | 13,450 | + 1,200 |
| Pig iron Steel grade | ex-Raipur | 20,300 | + 1,700 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,200 | + 300 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 2,550* | 0 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
Leave a Reply