MS Ingot/Billet prices that soared by INR 700-1,000/MT in just couple of days seems to be settling down. The price rally begin from Maharashtra (mainly Mumbai), one of the largest finish steel producing & consuming state in the country, hiked Re-bar offer by INR 1,000/MT in a week’s time, while other markets remain quite. But sooner, sale of Re-bar has started improving in East, North & Central India. In contrary to this, southern market has responded late.
Major Reason for Price rally
- Shortage of MS Ingot/Billet: Major Scrap based market witness shortage of MS Ingot & Billet, mainly in Wada (Mumbai), Jalna & Mandi Gobindgarh
- Finish Sale surpass the Production: SteelMint learned that the finish sale of Re-bar were above average and surpass the production and inventory in most market like Mumbai, Jalna, Raipur & Durgapur gives the positive sentiment
Market may Control further Hike – Why?
- Low Cost of Iron ore & Sponge Iron (C-DRI): Slight hike in Sponge Iron (C-DRI) & Pellet sponge (P-DRI) prices will pull down the prices any time. In a week, MS Ingot prices increased by INR 800-1,400/MT, whereas C-DRI prices by INR 500-700/MT
- Delivery Position: Major sellers sold the material for next 2-3 days, hence they will not bring the prices at once, however the same sellers will be there in market after 2 days which will build the selling pressure
- Low Finish Sale: Market participants expect that sale will now slow down as trader & stockiest already have good quantity of purchase
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