Today, a melter based in Punjab (Mandi Gobindgarh) reported that amid higher freight, purchase of billet has became expensive from east or central to north India. In Punjab, most of the induction furnaces have closed due higher electricity charges coupled with scarcity of scrap. Out of total requirement of ingot/billet in Punjab, approx 60% of material is used for sourcing from central and eastern Indian market.
RS Ispat, a leading manufacturer having units in Chhattisgarh and West Bengal, has traded billet at around INR 19,900-20,200/MT in the last week; deals had concluded mostly for central and east India.
Few Durgapur based billet manufacturers shared that most of the deals had concluded for Gobindgarh (Punjab) at approx INR 19,800-20,000/MT (ex-works); freight to Gobindgarh is INR 2,600/MT.
In-line, Chhattisgarh (Raipur and Bhilai) based manufacturers mentioned that demand is quite better from local market at present. However, buyers from west and north India have limited their purchase due to higher freight amid shortage of logistic vehicles.
MS billet prices as on 14 Dec’15
| Particular | Prices | Change | W-o-W |
| Ex-Mandi Gobindgarh | 23,400 | – 100 | +200 |
| Ex-Durgapur | 20,000 | – 50 | +200 |
| Ex-Rourkela | 19,400 | – 100 | +600 |
| Ex-Raipur | 20,450 | – 150 | +650 |
| Ex-Goa | 22,000 | 0 | +500 |
| Ex-Mumbai | 22,400 | – 100 | +500 |
| Ex-Chennai | 20,900 | 0 | +900 |
| Ex-Hyderabad | 22,500 | – 500 | +1,000 |
Prices in INR/MT
Source: SteelMint Research
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