In current circumstances, domestic billet market seems to be bearish as manufacturers are still under pressure to correct their offers due to low demand.
Although, billet prices across major markets have hit an all time low levels, prices this week have declined sharply by INR 500-1,300/MT in domestic market. Major correction is witnessed in Durgapur (-1,300), Raipur (-750) and Hyderabad (-500).
Current billet offers are INR 21,000/MT ex-Durgapur, INR 22,400/MT ex-Mumbai, INR 20,700/MT ex-Raipur and INR 22,500/MT ex-Hyderabad.
However, market participants are anticipating that there is no scope of further downfall in prices as it has already hit rock bottom.
Market participant comments
A manufacturer based in Durgapur spoke on condition of anonymity, “I will close my plant after few days for maintenance, viewing at low profit margins and continuous fall in prices.”
Another producers in Raipur stated, “I have already closed down my structure mill and soon will shutdown ingot furnace due to low conversion cost.”
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