Anticipated imposition of safeguard duty on steel products, stability in imported scrap prices and surge in sponge iron offers have been supporting billet prices since last 2-3 weeks.
This week, prices have moved up by INR 300-900/MT in domestic market. Current 125*125 billet offers are prevailing at INR 20,250/MT ex-Durgapur, INR 19,700/MT ex-Rourkela, INR 20,700/MT ex-Raipur, INR 22,350/MT ex-Mumbai, INR 20,900/MT ex-Chennai and INR 22,500/MT ex-Hyderabad.
Major price hike has been witnessed in Chennai market. Earlier, manufacturers in Chennai weren’t hoping for any improvement in market. However, in last 2-week, market is quite good and stable. Albeit, demand in the market is low, there is no inventories due to continuous buying.
Meanwhile, ingot prices in Mandi Gobindgarh (Punjab) have remained firm at INR 23,500-23,600/MT as manufacturers have already paid their electricity bills and also cleared their inventories. Thus, it can be inferred that ingot market here is likely be average in days to come.
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