Indian billet makers, who have been planning to shutdown their units on the backdrop of reducing conversion spread, are now cheered amid increase in conversion spread.
In last 2-week, sponge prices in Raipur and Durapur improved by upto INR 800/MT. Meanwhile, billet prices also surged by INR 1,000-1,200/MT.
Iron ore prices in Indian market fell by 50% in last few months, which has surged production of sponge iron. Thus, there is slight improvement in sponge offers as compared to price hike in billet and finish long steel.
Few billet makers from major markets mentioned that earlier there were limited sellers in the market and they had to tie-up with them to buy material. However now, the number of sellers have increased and they are receiving direct calls from sponge sellers.
Current P-DRI and billet prices with conversion spread
| Particular | P-DRI | Billet | Current Conversion | 1-W Earlier Conversion Spread |
| Ex-Durgapur | 11,250 | 20,000 | 8,750 | 8,800 |
| Ex-Rourkela | 10,800 | 19,600 | 8,800 | NA |
| Ex-Raipur | 11,600 | 20,450 | 8,850 | 8,750 |
| Ex-Hyderabad | 12,800 | 22,500 | 9,700 | 9,400 |
Prices in INR/MT
Source: SteelMint Research
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