Week 41 concluded with a pressurized note as semi finish prices declined sharply by upto 1,200/MT. Dominance of continuous selling pressure, low demand and weak global market sentiments has corrected prices sharply.
East (Rourkela) and south Indian markets witnessed a major price corrections of INR 1,000-1,200/MT on account of declining raw material (iron ore) prices in these regions. Meanwhile, prices in rest of the markets corrected by INR 100-700/MT.
Pig iron market also witnessed a sharp price corrections of INR 300-500/MT owing to price cut in sponge iron and billet.
Week 41 Sentiments
1. C-DRI prices are assessed in Durgapur at INR 13,550/MT (78 FeM; -100), Rourkela at INR 12,600/MT (78 FeM; -1,000), Raipur at INR 14,300/MT (80 FeM; -700) and Bellary INR 13,500/MT (78 FeM; -100).
2. P-DRI prices were in the range of INR 12,300-13,800/MT across India.
3. Billet price movement in Durgapur at INR 21,550/MT (-850), Rourkela at INR 21,000/MT (-1,200), Raipur at INR 22,050/MT (-750), Mumbai at INR 23,000/MT (-400), Chennai at INR 23,450/MT (-350) and Hyderabad at INR 23,000/MT (-1,000).
4. Pellet prices fell across India especially in eastern region because of sharp fall in sponge prices. In addition, buyers are reluctant to take position in domestic market.
5. Iron ore prices remained stable. Meanwhile, RP Sao started offering fines in merchant market.
6. Imported scrap prices fell further by USD 5-10/MT because of selling pressure.
Week 42 Outlook
1. Semi finish prices are likely to fluctuate by INR 200-500/MT in near-term.
2. Pressure on pellet manufacturers is likely to mount in days to come.
3. Imported scrap suppliers anticipate that prices are almost bottomed out.
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