Monthly average price of MS billet and P-DRI clarify that secondary market needs sustainability at current price in order to overcome from earlier losses.
December month exhibits gain in Indian billet prices in 2015. However, sponge prices were on the positive side during April, August, September and December of 2015. Earlier in Nov’15, there was no stoppage to price slide, which had led to high pressure on semis makers taking conversion as low as INR 8,200/MT in Raipur.
In Dec’15, MS billet prices at pan India have accelerated by INR 2,900-3,900/MT against Nov’15. Eastern and central belts of India have witnessed major price hike (+3,250-3,950), followed by western and south regions (+2,900-3,000) in Dec’15 against previous month.
Meantime, raw material i.e sponge prices have also gained by INR 900-2,200/MT; prevailing positive sentiments in Indian secondary market.
Earlier, conversion spread from P-DRI (78-80 FeM) to billet was INR 10,500-10,800/MT in major cities like Durgapur, Raipur and Rourkela, which in Dec’15 narrowed down to INR 8,500-9,000/MT.
State-wise monthly average billet and P-DRI price with conversion spread
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Durgapur |
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| Month | Billet | M-o-M | P-DRI | M-o-M | Conversion Spread |
| Apr’15 | 27,350 | -450 | 16,550 | 150 | 10,800 |
| May’15 | 25,750 | -1,600 | 15,400 | -1,150 | 10,350 |
| Jun’15 | 24,950 | -800 | 13,950 | -1,450 | 11,000 |
| Jul’15 | 23,750 | -1,200 | 13,350 | -600 | 10,400 |
| Aug’15 | 22,550 | -1,200 | 13,550 | 200 | 9,000 |
| Sept’15 | 23,900 | 1,350 | 14,000 | 450 | 9,900 |
| Oct’15 | 21,700 | -2,200 | 12,450 | -1,550 | 9,250 |
| Nov’15 | 20,050 | -1,650 | 11,150 | -1,300 | 8,900 |
| Dec’15 | 20,300 | 250 | 11,300 | 150 | 9,000 |
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Raipur |
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| Month | Billet | M-o-M | P-DRI | M-o-M | Conversion Spread |
| Apr’15 | 26,850 | -100 | 16,100 | -500 | 10,750 |
| May’15 | 25,700 | -1,150 | 15,250 | -850 | 10,450 |
| Jun’15 | 25,400 | -300 | 14,500 | -750 | 10,900 |
| Jul’15 | 23,750 | -1,650 | 13,700 | -800 | 10,050 |
| Aug’15 | 22,900 | -850 | 13,700 | 0 | 9,200 |
| Sept’15 | 23,700 | 800 | 14,200 | 500 | 9,500 |
| Oct’15 | 21,700 | -2,000 | 12,600 | -1,600 | 9,100 |
| Nov’15 | 19,950 | -1,750 | 11,750 | -850 | 8,200 |
| Dec’15 | 20,750 | 800 | 11,700 | -50 | 9,050 |
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Rourkela |
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| Month | Billet | M-o-M | P-DRI | M-o-M | Conversion Spread |
| Apr’15 | 26,150 | -250 | 15,200 | -500 | 11,550 |
| May’15 | 25,050 | -1,100 | 14,200 | -400 | 10,850 |
| Jun’15 | 24,500 | -550 | 13,550 | -650 | 10,950 |
| Jul’15 | 23,000 | -1,500 | 12,750 | -800 | 10,250 |
| Aug’15 | 22,000 | -1,000 | 12,850 | 100 | 9,150 |
| Sept’15 | 23,100 | 1,100 | 13,400 | 550 | 9,700 |
| Oct’15 | 21,100 | -2,000 | 12,200 | -1,200 | 8,900 |
| Nov’15 | 19,250 | -1,850 | 10,800 | -1,400 | 8,450 |
| Dec’15 | 19,650 | 400 | 11,200 | 400 | 8,450 |
| Mumbai | |||||
| Month | Billet | M-o-M | Scrap | M-o-M | Conversion Spread |
| Apr’15 | 28,900 | 250 | 21,250 | -100 | 7,650 |
| May’15 | 27,700 | -1,200 | 20,500 | -750 | 7,200 |
| Jun’15 | 26,950 | -750 | 20,400 | -100 | 6,550 |
| Jul’15 | 24,600 | -2,350 | 18,450 | -1,950 | 6,150 |
| Aug’15 | 24,800 | 200 | 17,750 | -700 | 7,050 |
| Sept’15 | 24,750 | -50 | 18,250 | 500 | 6,500 |
| Oct’15 | 22,900 | -1,850 | 16,700 | -1,550 | 6,200 |
| Nov’15 | 21,750 | -1,150 | 15,450 | -1,250 | 6,300 |
| Dec’15 | 22,600 | 850 | 15,550 | 100 | 7,050 |
All prices in INR/MT; ex-works
Source: SteelMint Research
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