MS Ingot offers in Mandi Gobindgarh are around INR 32,200/MT. Whereas, prices in Durgapur (East India) & Raipur (Central India) are hovering around INR 28,000-28,200/MT creating a gap of INR 4,000-4,200/MT.
MS Ingot prices increased by INR 500-1,500/MT (M-o-M) previous month, owing to high raw material cost and low Ingot productions. Ingot manufacturer across the city has cut the production due to squeezing cost and high raw material prices. Last month, prices in Mandi Gobindgarh increased by INR 600-700/MT whereas prices in Durgapur remain unchanged. As a result, the gap increased to INR 4,200/MT from INR 3,500/MT (average) earlier.
Similarly, comparing Mandi Gobindgarh offers to Raipur, the gap is now at INR 4,200/MT from INR 3,200-3,500/MT earlier.
Well known trader based in Raipur says, “Mandi Gobindgarh is a trendsetter for price sentiments across India. If even there is a slight price increase, it will impact other cities as well. But, presently such trend is not holding good due to local factors. Production in Raipur & Durgapur in last 3-4 years has surpassed that of Mandi Gobindgarh and if the buying sentiments are weak, it will reverse sentiments in Mandi as well”, he added.
One of the traders in Durgapur also had the same view and he added “low scrap availability in North India has forced manufacturers to cut production and buy MS Ingot from Sponge rich locations like Rourkela, Raipur and Durgapur. Presently, we can expect prices to remain range bound in East & Central India whereas prices will soften in Punjab.”
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