Falling steel demand and heavy rainfalls have led to a steep correction in Billet prices in Mumbai, which touched a 7 Months low today.
Billet prices in Mumbai (Wada), one of the largest Billet producing region in the country, have witnessed a downfall of INR 1,700/MT M-o-M. Current offers stand at INR 31,000/MT (Ex-Works). These prices were last seen in the month of December, 2013.
Similarly prices have corrected in other parts of the country as well. Offers are ranging from INR 30,000-32,500/MT.
SteelMint while speaking to market participants have assessed that poor buying of finish steel across the country is a major reason behind the falling Billet prices. In line, few participants said we expect market to revive post monsoons.
Billet Prices in Major Trading Regions
|
Place |
Size |
Price |
W-o-W |
M-o-M |
|
*Mumbai |
125×125 |
31,000 |
– 500 |
– 1750 |
|
*Kandla |
125×125 |
32,400 |
– 900 |
– 1500 |
|
*Raipur |
125×125 |
31,200 |
– 500 |
-350 |
|
*Raigarh |
125×125 |
31,000 |
– 300 |
-100 |
|
Jharsugda |
125×125 |
30,000-30,200 |
0 |
0 |
|
Durgapur |
125×125 |
31,300 |
– 550 |
– 300 |
|
Chennai |
125×125 |
32,500 |
– 600 |
0 |
Basic prices in INR/MT; excluding taxes
Commercial grade
*Payment next day
Demand for Imported Scrap falls
With falling Billet prices, demand for imported Scrap has fallen down. Despite scrap offers correcting up to USD 10/MT there are not many buyers. Speaking to steel smelters, it was learnt that current offers from Middle East are somewhere in the range of USD 370-375/MT for HMS 1& 2 and USD 380-385/MT for HMS 1 CFR Mumbai. They expect prices to correct further.
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