Indian Billet prices are likely to remain range-bound owing to Scrap shortage, increased availability of Sponge iron and improved demand in Finished steel.
MS Billet prices in India are trading at the lowest level of INR 26,500/MT in Odisha and INR 29,500/MT in Mumbai. This week prices opened with a rise of INR 300-500/MT as compared to last week’s prices. Global prices are assessed at the same level of USD 355/MT, FoB Black Sea.
SteelMint learned from a market participant that imported Scrap deliveries for the month of Apr’15 are deferred due to new Foreign Trade Policy (FTP 2015-2020). Under the new FTP, a new regulation of video graphing has been added in pre-shipment inspection procedure for metal Scrap import.
SteelMint has also reviewed that Finished steel demand in major Indian locations has improved as it can be seen from improved conversion spread between Billet and Rebar by INR 200-400/MT W-o-W.
In addition, NMDC has kept Iron ore prices unaltered for month of Apr’15. Thus, due to better availability of Iron ore from Odisha as well as NMDC, market participant anticipated that Sponge iron prices will remain at the level of INR 17,000-19,000/MT.
On the other hand, India’s largest Pig iron exporter, NINL has surged Steel grade Pig iron prices by INR 300/MT to INR 18,400/MT ex-works. Furthermore, the company is providing discount on bulk quantity; such as INR 100/MT on 3,700 MT and INR 200/MT on 7,500 MT & above.
| Particular | MS Billet | W-o-W | M-o-M | 78-80 FeM Sponge Iron | W-o-W | Conversion Spread |
| Ex-Raipur | 27,500 | + 700 | + 250 | 17,900 | + 300 | 9,600 |
| Ex-Durgapur | 27,900 | + 400 | – 150 | 18,100 | + 450 | 9,800 |
| Ex-Rourkela | 26,500 | + 450 | – 100 | 17,050 | + 350 | 9,450 |
| Particular | MS Billet | W-o-W | M-o-M | HMS Scrap Price | W-o-W | Conversion Spread |
| Ex-Mumbai | 29,200 | + 200 | + 700 | 21,700 | + 200 | 7,500 |
| Ex-Ahmedabad | 28,800 | + 300 | + 400 | 23,250 | + 150 | 5,550 |
All prices are basic in INR/MT
Source: SteelMint Research
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