Week 44 Updates – Slight Price Fluctuation in Indian Semis Market

During the last week Indian semis market has reported low volatility in prices to INR 200-500/MT.

In week 44, domestic billet & sponge offers were marginally change. Participants mentioned that, despite sluggish demand the manufacturers were maintain offers due to increase cost of production and array of surge in steel prices post holidays. Today, the manufacturers have open prices similar against last trade on 29 Oct’16.

Week 44 Dynamics

1. 78-80 FeM C-DRI offers are assessed at INR 14,200/MT (+200) ex-Durgapur, INR 12,700/MT (0) ex-Rourkela, INR 14,100/MT (+200) ex-Raipur and INR 13,750/MT (-100) ex-Bellary; changes of prices depends upon weekly assesment.

2. 78-80 FeM P-DRI prices are assessed in the range of INR 12,100-14,550/MT across major markets.

3. 125×125 mm billet prices are evaluated at INR 21,500/MT (-100) in Durgapur, INR 20,550/MT (-150) in Rourkela, INR 21,000/MT (0) in Raipur, INR 22,900/MT (+400) in Mumbai, INR 22,700/MT (+450) in Chennai and INR 22,250/MT (0) in Hyderabad.

4. Domestic Iron ore prices were firm while, in global market it gain by USD 9-10/MT to USD 64-65/MT, CNF China. Prices increased on the grounds of sharp rise in coking coal prices amid improved trade activities.

5. Pellet offers in central and east India were fell by INR 50-350/MT due to limited purchase by sponge manufacturers.

6. Scrap offers in west and south India increases by upto INR 500/MT on limited supply.

Week 45 outlook

1. Manufacturers are assuming prices likely to gain momentum post Diwali festival. However, sluggish long steel demand is a concern for market participants.

2. Domestic pellet offers may remains under pressure due to lack of trades.

4. Secondary pig iron manufacturers may revise offers soon as in current prices buyers are not taking any interest.

Indian raw material and semis prices as on 29 Oct’16

Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research