Indian Billet Prices firm as Rupee falls below 63

Indian Billet prices have shown some stability post Indian currency hit 13-month low on the backdrop of rise in demand for the US dollar. Indian Rupee fell to 63.45 levels per USD in the opening trade on Tuesday morning. This has raised concerns for Billet manufacturers as importing Scrap will become expensive. Rupee was trading at 61-61.5 levels a few days back.

Billet prices in India remained firm in the range of INR 28,000-31,500/MT ex-plant. Offers have moved up in the month of December on account of lower Scrap exports from US/Europe due to Christmas holidays.

India is the 3rd largest Scrap importer and US & Europe contribute about 30% of the total imports to India. The country had imported 4.5 MnT in FY14 and expected to import 5.5-6 MnT in the current fiscal year.

Key Highlights

1. Imported Scrap (HMS 1&2) offers to India were assessed at USD 315-320/MT, CIF Nhava Sheva (Mumbai)
2. Indian Sponge iron (DRI) prices remain stable owing to low availability of Iron ore. Prices are hovering in the range of INR 19,000-21,000/MT
3. Indian Pig iron offers may decline due to falling global prices. NINL to revise offers soon
4. Imported Billet offers from CIS were assessed at around USD 435-440/MT, CIF India
5. Last tender for Indian Billet fetched a bid at USD 436/MT FoB Vizag. Shipment was made to Sri Lanka

MS Billet Monthly Price Change

Reference prices
Source: SteelMint Research