Indian Billet & Sponge prices were moderately higher in week 49. Both the products have registered a price rise up to INR 600/MT (USD 9). However, in Mumbai Billet prices fell by INR 200/MT due to ease in supply from the Central region.
Sources reported that, trades are taking place which was quiet during last few weeks. During the week, major price rise in billet have seen in Raipur, Durgapur & Hyderabad by INR 350-500/MT, while in sponge by INR 300/MT in Rourkela & INR 600/MT in Durgapur.
Week 49 Dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 14,150/MT (+600) ex-Durgapur, INR 12,600/MT (+300) ex-Rourkela, INR 14,000/MT (+100) ex-Raipur and INR 14,000/MT (+100) ex-Bellary; change of prices depends upon weekly assessment.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 12,450-14,700/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 22,050/MT (+450) in Durgapur, INR 21,350/MT (+350) in Rourkela, INR 22,350/MT (+350) in Raipur, INR 23,700/MT (-200) in Mumbai, INR 23,550/MT (0) in Chennai and INR 24,000/MT (+500) in Hyderabad.
4. In the Indian market, a Odisha based miner had cut Iron ore prices by INR 100-250/MT, while NMDC in Chattisgarh hiked fines prices by INR 100/MT and rollover of lump prices. However, in global market offers up by USD 6-7/MT to USD 79-80/MT, CNF China.
5. Despite weak demand Indian pellet manufacturers have maintained offers on same levels at INR 4,000-6,400/MT (US$ 58-95) ex-works. While, in the global market it slightly increased at USD 100/MT, CNF China.
6. During the week, secondary producers in Raipur & Durgapur have cut pig iron prices by INR 200-500/MT (US$ 3-7) due to poor buying interest by Ingot/billet manufacturers.
Week 50 outlook
1. According to the Industry sources, Semis prices likely to remain volatile looking at less supply in billet amid subdued trade activities.
2. Weak domestic demand and bulk export deals may balance pellet offers in same price levels.
3. Pig iron prices may get stability as the large manufacturers resumed to export the material. This may balance pig iron supply in domestic market.
Raw material & Semis prices as on 03 Dec’16
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 23,700 | – 200 |
| Scrap HMS (80:20) | ex-Mumbai | 16,750 | + 250 |
| C-DRI 80 FeM | ex-Raipur | 14,000 | + 100 |
| P-DRI 80 FeM | ex-Raipur | 12,950 | – 50 |
| Pig iron Steel grade | ex-Raipur | 21,000 | – 300 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,600 | – 200 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 3,300* | 0 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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