MS Ingot offers have increased almost by INR 500/MT W-o-W in the major market on the grounds of low production and high input cost. Market participants believe prices to remain range-bound in near term. Any price rise is limited because of low finish off-take.
A Re-bar manufacturer based in Mumbai said, “Initially, I had good expectation for finish sale in coming month but low off-take of Re-bar & Structure and present festive mood will continue to hamper the sales”. Similar comment has been stated by manufacturer based in Gujarat, West & South India.
Ingot manufacturer based in Raipur said that MS Ingot prices will remain range-bound as raw material (Scrap & Sponge iron) prices may remain high. In addition, he said, Pig iron and Sponge pellet prices are under pressure (yesterday offers in Raipur had declined by INR 100-200/MT), as availability of domestic Scrap has increased.
Durgapur (West Bengal): Steel Association based in the state has started to open prices for daily trade purpose for Sponge, Ingot & Billet owing to reduced conversion spread. In last 3-4 days, prices have increased by INR 300-500/MT. Earlier, the prices were declining continuously by INR 100-200/MT day by day. Also, profit margin had declined regularly. This has bound the association to open prices on daily basis.
As per SteelMint sources, the association has fixed the gap between Sponge pellet & Ingot and from Sponge pellet to MS Billet. For Ingot, they are charging INR 11,200/MT on Pellet sponge prices and for MS Billet, they are adding INR 11,500/MT in Pellet sponge prices.
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