India: Billet Prices under pressure on ease in Raw Material Supply

Billet prices in India are under pressure owing to improvement in raw material situation and lower realizations in export market. Prices have fallen by INR 500-700/MT W-o-W in most of the regions. Increasing availability of Sponge iron from Odisha and low Pellet Sponge (P-DRI) prices may further build pressure on semi finish products.

Indian steelmakers are concerned that prices may correct further if finished steel demand does not pick up in Jan’15. Billet prices are hovering in the range of INR 27,700-30,700/MT ex-works.

Key Highlights

1. Billet offers in India correct by up to INR 800/MT W-o-W; currently trading at INR 27,700-30,700/MT ex-works
2. Sponge iron prices have also corrected by up to INR 800/MT W-o-W owing to improved Iron ore supply in Odisha and rising imports
3. Imported Scrap prices were assessed at USD 312-317/MT, CIF Nhava Sheva
4. RINL’s export tender of 100,000 MT Billet/Blooms conducted in December, has failed to receive bids
5. Last Bloom & Billet export tender fetched bids at USD 419/MT & USD 436/MT, FoB Vizag Port respectively
6. Billet prices in Turkey and CIS region have improved due to rising Scrap offers. Prices were assessed at USD 400-405/MT, FoB Black Sea
7. Odisha based manufacturer sold Billet at INR 28,800/MT (ex-works) to Nepal

MS Billet Weekly Price Change

Source: SteelMint Research