Week 52 – Sharp Price Hike in Indian Semis

During the week the sales were quite good in Indian semis as prices for both the products rise significantly, sponge by INR 1,000-1,750/MT & Billet by IINR 1,800-2,600/MT. Manufacturers added, on prices hike, demand also gain momentum. Thus, prices were on continuous upward mode.

Week 52 Dynamics

1. 78-80 FeM C-DRI offers are assessed at INR 15,250/MT (+1,150) ex-Durgapur, INR 13,900/MT (+1,300) ex-Rourkela, INR 15,900/MT (+1,750) ex-Raipur and INR 15,200/MT (+1,450) ex-Bellary; change of prices depends upon weekly assessment.

2. 78-80 FeM P-DRI prices are assessed in the range of INR 13,900-15,800/MT across major markets.

3. 125×125 mm billet prices are evaluated at INR 24,500/MT (+2,000) in Durgapur, INR 24,200/MT (+2,600) in Rourkela, INR 24,750/MT (+2,150) in Raipur, INR 27,150/MT (+1,950) in Mumbai, INR 24,900/MT (+1,800) in Chennai and INR 26,200/MT (+2,200) in Hyderabad.

4. Iron ore prices were remain firm in Indian domestic market. Where as pellet prices surge up to INR 500/MT.

5. During the week, global Iron ore & Pellet prices were firm due to the festive season in the China.

6. On weekly average basis, Pig iron prices rose by INR 500-1,000/MT in Central & East India, on rising semis prices and less supply for the material.

Coming Week outlook

1. Prevailing positive sentiments and better demand in billet from both Indian domestic & global market may remain strong Indian semis prices.

2. Pellet prices may further gain, if sponge demand remain supported.

3. Pig iron prices may again increase as demand has strengthen and supply is less for the material.

Raw material & Semis prices as on 24 Dec’16

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