The month of Jan’16 reported to be highly volatile in terms of prices. At first in the beginning, prices started to surge and then again fall back to December’s low level in the month end.
Taking monthly average, Indian billet prices rose by 2-4% in Jan’16 against Dec’15. Prices in Durgapur increased to INR 21,050/MT (3%) from INR 20,450/MT. Similarly in Raipur, manufacturers had raised offers to INR 21,200/MT (1.3%) from INR 20,950/MT.
In the meantime, viewing the panic situation and increase in price volatility, furnace associations based in Raipur and Mandi Gobindgarh had decided to trade MS ingot/billet only for 4 hours on daily basis.
Currently, prices are volatile amid media reports of government’s decision for imposition of MIP or safeguard duty on certain steel products in the month of Feb’16.
However, high inventory, low finish sales and financial liquidity are still the few major problems reported by Indian semi finish manufacturers.
Monthly average billet prices with M-o-M change
| Month | Duragpur | M-o-M | Raipur | M-o-M | Rourkela | M-o-M | Mumbai | M-o-M |
| Apr’15 | 27,350 | -450 | 26,850 | -100 | 26,150 | -250 | 28,900 | +250 |
| May’15 | 25,750 | -1,600 | 25,700 | -1,150 | 25,050 | -1,100 | 27,700 | -1,200 |
| Jun’15 | 24,950 | -800 | 25,400 | -300 | 24,500 | -550 | 26,950 | -750 |
| Jul’15 | 23,750 | -1,200 | 23,750 | -1,650 | 23,000 | -1,500 | 24,600 | -2,350 |
| Aug’15 | 22,550 | -1,200 | 22,900 | -850 | 22,000 | -1,000 | 24,800 | +200 |
| Sept’15 | 23,900 | +1,350 | 23,700 | +800 | 23,100 | +1,100 | 24,750 | -50 |
| Oct’15 | 21,700 | -2,200 | 21,700 | -2,000 | 21,100 | -2,000 | 22,900 | -1,850 |
| Nov’15 | 20,050 | -1,650 | 19,950 | -1,750 | 19,250 | -1,850 | 21,750 | -1,150 |
| Dec’15 | 20,300 | +250 | 20,750 | +800 | 19,650 | +400 | 22,600 | +850 |
| Jan’16 | 21,050 | +750 | 21,200 | +450 | 20,550 | +900 | 22,850 | +250 |
Prices in INR/MT
Source: SteelMint Research
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