During the week, Semis market reported price fall by INR 300-900/MT (USD 4-15) in across major Indian markets; where as major price fall seen in Durgapur. The reason behind is nil demand of finished steel. And on weekly basis price slipped for sponge by INR 200-400/MT & Billet by INR 600-900/MT.
Week – 5 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 14,400/MT (-300) ex-Durgapur, INR 14,100/MT (-300) ex-Rourkela, INR 15,500/MT (-400) ex-Raipur and INR 15,400/MT (-250) ex-Bellary; change of prices depend upon weekly assessment.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 14,500-16,000/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 23,700/MT (-850) in Durgapur, INR 23,100/MT (-750) in Rourkela, INR 24,300/MT (-450) in Raipur, INR 26,200/MT (-900) in Mumbai, INR 25,350/MT (-450) in Chennai and INR 25,350/MT (-650) in Hyderabad.
4. Indian Iron ore prices were firm. While, pellet prices fall by INR 50-100/MT owing to lull trade activities in sponge iron.
5. Global Iron ore & pellet prices were also remain unaltered. The offer price were assessed – for Iron ore at USD 81/MT & pellets at USD 98/MT; CNF China.
6. During the week, Pig iron prices fall in East India up to INR 500/MT. While, it remain stable in Central & South India. Trades were not supported due to falling billet prices in the domestic market.
Outlook for Week – 6
1. Industry experts are assuming further no major price change in semis products till Union Budget get announced.
2. Less scope for price increase in pellets, major price changes will be more dependent post Budget declaration as there is rumor about to nil export duty on high grade iron ore.
3. Pig iron prices may remain under pressure due to fall in global coking coal, scrap & Indian billet prices. Also resume operations by few East India based manufacturers is a major concern for the pig iron market.
Raw material & Semis prices as on 28 Jan’17
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 26,200 | -900 |
| Scrap HMS (80:20) | ex-Mumbai | 18,500 | 150 |
| C-DRI 80 FeM | ex-Raipur | 15,500 | -400 |
| P-DRI 80 FeM | ex-Raipur | 14,500 | -600 |
| Pig iron Steel grade | ex-Raipur | 24,100 | 0 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 4,700 | -50 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 3,400* | 0 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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