With no major announcement in the union budget FY17 for the steel industry, today MS billet prices opened with marginal corrections of INR 200-300/MT from previous closing. Meanwhile, south market like Chennai fell by INR 400/MT on account of subdued demand.
However, sources today reported that billet buying in Durgapur (West Bengal) is comparatively better than other markets. Manufacturers there are selling the material INR 200-400/MT higher in CST billing than the offers for VAT billing (local market).
An integrated plant owner in Durgapur mentioned, “We have concluded few bulk deals for billet (100*100 mm) to Bangladesh at USD 322-323/MT (INR 22,200/MT, ex-plant) via road delivery. Besides, traders in Gobindgarh (Punjab) are also willing to purchase billet at INR 22,000/MT ex-plant. But, due to better realization in export, they aren’t interested to sell material within the country.”
While, few small plant operators have reported to sell billet last week to Gobindgarh (Punjab) at INR 22,200-22,500/MT ex-plant; freight via road from Durgapur to Gobindgarh is INR 2,500/MT.
Current MS billet prices with D-o-D
| Particular | Prices | D-o-D | W-o-W |
| Ex-Mandi Gobindgarh | 25,900 | -300 | 100 |
| Ex-Durgapur | 21,900 | -200 | 250 |
| Ex-Rourkela | 21,200 | -300 | 50 |
| Ex-Raipur | 22,500 | -250 | 250 |
| Ex-Ahmedabad | 24,500 | -400 | 500 |
| Ex-Jalna | 24,300 | 0 | 0 |
| Ex-Mumbai | 24,300 | -200 | -500 |
| Ex-Chennai | 24,450 | -450 | 450 |
| Ex-Hyderabad | 24,000 | 0 | 0 |
Prices in INR/MT
Source: SteelMint Research
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