Mumbai in Maharashtra which is the price trend setter and most active market in Western India has observed sharp hike in billet prices. Billet prices in Mumbai surged by INR 600/MT (USD 8) in a day over mismatched supply-demand, SteelMint learned from market participants.
As per sources, the prices increase sharply was due to supply tightness for Billets owing to plants closure in Silvassa (Dadra & Nagar Haveli) due to cut power supply through the state government owing to non-completion of safety measures.
SteelMint received the letter which notifies steel mills to close operations with immediate effect.
The steelmills are mentioned below who received notice for curtailing power supply to halt operations –
— M/s Shree Krishna Steel Products, Kanadi
— M/s Shree Hanuman Tubes Pvt Ltd, Masat
— M/s Ganpati Alloys, Masat
— M/s Twenty First Centry Wire Rods Ltd, Khadoli
— M/s Signora Texport Pvt Ltd, Luhari
— M/s Elegant Casting Pvt Ltd, Luhari
— M/s Sidhi Vinayak Steels, Khadoli
— M/s Dadra Nagar Steel Pvt Ltd, Khadoli
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Today the induction grade Billet prices in Mumbai (Wada) is hovering at INR 33,300-33,400/MT against last week (22nd Dec’18) closing at around INR 32,800/MT, ex-works & excluding GST.
Market participants believe the opening of plants may take around a week duration as they have to comply all safety measures at their plants to get certified by government.
Silvassa is a major supplier of Billet in Maharastra specifically in Wada which an industrial hub of Mumbai. As per sources, nearly 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.
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