Indian rolling mill operators in domestic market are preferring to buy billet in thin volumes. MS billet market sentiments in India remained negative in a week. Currently, prices are assessed in the range of INR 21,000-23,500/MT (USD 324-363/MT) across major markets.
Prices in east India based regions like Durgapur are assessed at INR 21,800/MT (-200) and Rourkela at INR 21,150/MT (-50). In central Indian market, Raipur, billet is offered at INR 22,050/MT (-200). In west (Mumbai) and south India (Chennai), it is at INR 23,200/MT (0) and INR 23,100/MT (-350) respectively.
In context to supply terms, east India (Durgapur) remains the major MS billet supplier to north India over central regions because of cheaper offers and low freight charges by INR 400-800/MT.
Market Participant Comments
A Rourkela based manufacturer shared, “Viewing at subdued demand from finish steel market, Indian rolling mill operators are preferring to purchase MS billet hand to mouth; leading to piling up of inventory in the plants.”
Another manufacturer based in Durgapur said, “Rolling mill operators are anticipating that buying will remain dull amid festive mood in domestic market and semis prices will fall soon.”
However a Raipurian billet manufacturer reported, “Prices will remain range-bound in near term, looking at stability in sponge iron (raw material) prices.”
Source: SteelMint Research
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