Mumbai based in Maharashtra, Western India which is known as trend setter in the region has observed hike in billet prices by about INR 1,500/MT (USD 21) in last 5-7 days.
Today the induction grade Billet prices in Mumbai (Wada) is hovering at INR 33,800-33,900/MT against last week’s assessment of INR 32,500-32,700/MT, ex-works & excluding GST.
The reason behind price hike as quoted by sources is short supply of billet in the market after closure of steel mills in Silvassa (Daman & Diu).
Silvassa is a major supplier of Billet in Maharastra specifically in Wada which an industrial hub of Mumbai.
As per participants, nearly about 12-15 billet plants are based in Silvassa who’s daily total billet production is about 1,000 MT, equivalent to 30,000 per month.
Also few of rolling mills are based in Silvassa who are largely producing rebars.
The plants have been closed since last day as government ordered to shut operations.
As per sources after a blast furnace took place on Thursday, 13th Dec 2018 in Krishna Steel Company in Naroli, Silvasa, the state govt got active and strict.
The govt has ordered mills to shut operations due to high pollution. As per sources more than 3 workers were killed in huge explosion in the company and 2-3 workers got highly injured in this incident.
Participants believe reopening of plants may take few days as they have to get satisfied to the govt with completing anti-pollution norms.
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