Domestic MS billet supply has increased as billet production is on its full swing post resolution of power supply problem in industries.
Earlier in summer, induction operators were receiving good profit margin amidst limited production, which was due to power supply problem in industries. As a result, sponge inventory had piled up, which led to decline in its prices. In addition, price difference between sponge pellet and billet widened to around INR 11,000-11,500/MT in east and central India.
However, now that the power supply problem is resolved, production is on its full swing, which is increasing the availability of material in domestic market. As a result, price gap between sponge pellet and billet has narrowed down by INR 500-800/MT. Thus, profit margin for manufacturers may reduce.
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