Indian semi finish market remained sluggish in Week 40. Weak domestic market sentiments and prolong subdued demand have led to decline in sponge and billet prices by upto INR 1,100/MT.
Major fall have been seen in eastern region, Durgapur as prices dipped by INR 1,000-1,200/MT amidst continuous rise in inventory levels of long products. As a result, mill operators based in the region are willing to purchase at cheaper rates. However, prices in rest of the markets corrected by INR 500-700/MT.
On the filp side, pig iron prices remained stable with minor price correction of INR 200/MT in Raigarh.
Week 40 Sentiments
1. Sponge iron was offered in Durgapur at INR 13,650/MT (78 FeM; -1,050), Rourkela at INR 13,600/MT (78 FeM; -650), Raipur at INR 15,000/MT (80 FeM; -150) and Bellary INR 13,600/MT (78 FeM; 0).
2. P-DRI prices hovered in the range of INR 12,500-14,000/MT in domestic market.
3. Billet price movement in Durgapur at INR 22,400/MT (-1,150), Rourkela at INR 22,200/MT (-600), Raipur at INR 22,800/MT (-550), Mumbai at INR 23,300/MT (-700), Chennai at INR 23,800/MT (-50) and Hyderabad at INR 24,000/MT (0).
4. Odisha based miners raised iron ore fines prices by INR 200/MT. While, NMDC reduced prices by INR 125-275/MT (after considered DMF) looking to thin dispatches in Sep’15.
5. Imported scrap prices fell further by USD 10-15/MT because of sudden fall at US domestic market and overstocked material with scrap suppliers across the global.
Week 41 Outlook
1. Semi finish prices may remain volatile, looking at fall in raw material prices and increase in finish flat steel prices by primary manufacturers.
2. Increase in iron ore fines prices is likely to surge iron ore sales and put pressure on pellet manufacturers.
3. Imported scrap prices to India may remain under pressure as correction in global price.
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