Week 23 ends with no major price fluctuation in Indian semi finish market. The stability in prices is supported by thin production coupled with moderate demand across nation’s major markets.
Week 23 Major Dynamics
1. Sponge iron prices past week hovered in the range of INR 15,000-17,000/MT. C-DRI offers in Bellary were assessed at INR 16,050/MT (82+ FeM), Durgapur at INR 16,200/MT (78 FeM) and Raipur at INR 16,800/MT (80 FeM)
2. MS billet prices were assessed in the range of INR 24,700-27,000/MT; almost unchanged from offers a week earlier. Whereas, MS billet South market went down upto INR 500/MT in a week amidst lesser buying interest from mill operators.
3. Long steel market also witnessed downturn in rebar prices; Raipur by INR 400/MT and Mumbai by INR 700/MT
4. Few closed, Odisha based, plants resumed their sponge & billet production last week
5. Gobindgarh (MGG) based traders highlighted bulk purchasing of MS billet from Durgapur
6. Central India tussled with power supply problem this week; getting power for limited hours
Raw Material & Semi Finish Prices as on 6 Jun’15
| Place | C-DRI (FeM) |
W-o-W | P-DRI (FeM) |
W-o-W | HMS Scrap |
W-o-W | MS Ingot |
W-o-W | MS Billet |
W-o-W |
| Mandi | 19,400 (78+) | – 400 | 17,900 (78+) | – 400 | 21,350 | + 200 | 29,200 | + 250 | 29,350 | + 150 |
| Raipur | 17,700 (82+) | 0 | 14,800 (82+) | 0 | 20,450 | 0 | 24,700 | – 200 | 25,350 | – 400 |
| Durgapur | 16,200 (78) | – 100 | 14,200 (78) | – 250 | 19,800 | 0 | 24,650 | + 50 | 25,150 | + 100 |
| Hyderabad | 17,000 (82) | 0 | 14,700 (77) | 0 | 20,100 | – 300 | 26,000 | 0 | 26,000 | – 200 |
Basic prices in INR/MT
Source: SteelMint Research
Week 24 Major Highlights
1. Private power supply distribution companies may not supply power in Punjab due to restriction imposed by Punjab State Electricity Board. The private companies supply power cheaper by upto INR 1 per unit compared to government companies
2. INR touched the level of 64 against USD, which has made imported scrap and coal expensive. Moreover, it is expected sponge iron demand will improve
3. Selling pressure on sponge iron will increase in central India. P-DRI today opened at INR 14,600/MT; down INR 300-400/MT W-o-W
4. Market may react to import duty imposed on stainless steel. Sources say no major relief in short-term for finished long & flat manufacturers
5. Iron ore supply from Odisha is likely to improve further
6. Power tariff in Uttar Pradesh may be reviewed this week. Local media reported prices may go up by 15%
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