Indian semis prices were on rising mode as on last week. The current week prices increase up to INR 1,200/MT (USD 18). The price surge are as follows – billet by INR 500-1,200/MT & sponge by INR 500-1,050/MT.
Trade participants added, prices rose as there was strong demand amid less supply of sponge & successive positive sentiments across the globe.
Week – 9 dynamics
1. 78-80 FeM C-DRI offers are assessed at INR 16,650/MT (+1,050) ex-Durgapur, INR 15,300/MT (+500) ex-Rourkela, INR 17,500/MT (+800) ex-Raipur and INR 16,300/MT (+800) ex-Bellary. Prices changes mentioned are weekly basis.
2. 78-80 FeM P-DRI prices are assessed in the range of INR 15,600-16,800/MT across major markets.
3. 125×125 mm billet prices are evaluated at INR 25,100/MT (+1,000) in Durgapur, INR 24,500/MT (+900) in Rourkela, INR 26,250/MT (+1,050) in Raipur, INR 27,200/MT (+900) in Mumbai, INR 27,200/MT (+500) ex-Ahmedabad, INR 26,700/MT (+1,150) in Chennai and INR 26,500/MT (+1,000) in Hyderabad.
4. Rise in sponge prices, logistic Issue in Iron ore & strong export demand led to surge in Indian pellet prices by INR 100-400/MT. Moreover, domestic Iron ore prices were unaltered during the week.
5. During the week, global Iron ore & Pellet prices were volatile. However, in the week ending it stood at same level from where it started to gain. The fresh prices are assessed – Iron ore 62% Fe at USD 90/MT & pellets (6-20 mm) at USD 103/MT; CNF China.
6.In the week, Pig iron prices registered an uptick over better demand amid sharp hike in substitute products prices like sponge & scrap. The price rise assessed at INR 200-400/MT in Raipur, Central India & INR 800-1,000/MT in Durgapur, East India.
Outlook for Week – 10
1. Indian semis prices are likely to remain strong as there is significant good demand. Also, higher prices of raw materials, resuming of exports & positive trend in global market are another major plus points for the further price strengthen of semis.
2. Indian pellet prices may remain strong as demand is good in Indian domestic & global market.
3. The pig iron manufacturers in Central & East India indicated about further no price reduction. They claimed that demand has improved in Indian domestic and also exports gain momentum for the product.
Raw material & Semis prices as on 25 Feb’17
| Products | Markets | Prices in INR/MT | W-o-W |
| Billet 125*125 MM | ex-Mumbai | 27,200 | 900 |
| Scrap HMS (80:20) | ex-Mumbai | 20,250 | 750 |
| C-DRI 80 FeM | ex-Raipur | 17,500 | 800 |
| P-DRI 80 FeM | ex-Raipur | 16,450 | 900 |
| Pig iron Steel grade | ex-Raipur | 23,200 | 200 |
| Pellet Fe 63%, 6-20 mm | ex-Durgapur | 5,100 | 200 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 3,600 | 0 |
Basic prices in INR/MT; all taxes will be applicable
*Incld Royalty, DMF & NMET
Source: SteelMint Research
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