Mandi Gobindgarh – Punjab based in northern region of India and one of the major buyer of Billet has booked healthy volumes in last one week from Eastern India – West Bengal, Jharkhand & Odisha.
As per participants, the major bookings made in West Bengal & Jharkhand as logistic is cheaper and takes less times than to source from Odisha.
On an average the bookings in West Bengal (Durgapur, Raniganj, Burdwan & Asansol) made at INR 31,600-31,800/MT (ex-plant) and freight cost to Mandi (Punjab) reported at INR 2,300-2,500/MT via road.
Further, the deals from Jhakhand (Ranchi, Tatanagar & Chaibasa) were reported at around INR 31,000-31,300/MT (ex-plant) and freight cost is about INR 2,500-2,700/MT.
Meanwhile as the freight cost high from Odisha(via road), which is not less than of INR 3,000/MT, few of bookings mentioned at INR 30,700-30,900/MT (ex-plant).
Mandi Gobindgarh is a major hub of mid-small size re-rollers in northern India, producing structures, pipes & rebars and largely sourcing Billet from out of state.
As per industry leaders, out of total requirement of Ingot/Billets, close to 70-80% is source from out stations – West Bengal, Jharkhand, Odisha, Rajasthan & Chattisgarh.
In last one week Billet prices in central, east & northern India increased significantly by INR 1,000-2,000/MT (USD 14-28.5) on improved domestic demand of finished steel products.
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