Prolong subdued demand, consistent fall in raw material (sponge iron) prices and surge in Chinese billet export have already driven down billet prices to an all time low levels. Indian billet makers are now in dilemma and trying to resist further price corrections.
This week also, Chinese billet export offers fell by USD 2/MT and available at USD 250/MT, FoB China. Alongside, offers in China’s domestic market reported a fall of RMB 80/MT (USD 12.5/MT) in a week (26 Nov’15-2 Dec’15) to RMB 1,470/MT (USD 230/MT); in turn mounting pressure on global market as well as Indian domestic market.
As per data maintained by SteelMint since Sept’10, billet prices have currently hitting the lowest level of INR 18,400-21,600/MT across major Indian markets. In contrast to last week assessment, prices remained almost firm across in domestic market. However, a major downfall of INR 350-450/MT W-o-W is witnessed in markets like Durgapur, Mumbai and Rourkela.
In outlook, it seems that prices are likely to remain firm at the current level and manufacturers may resist to make any price movement till the market get some momentum.
Source: SteelMint Research
Leave a Reply