Domestic billet prices have fallen by INR 300-500/MT D-o-D against last day closing on account of week long low rebar sales and increase in billet production.
“We have halted rebar production and are currently selling billet”, said a Durgapur based rebar manufacturer. Similar comments are received from central India, where supply of billet has increased.
However, SteelMint assessed that prices are unlikely to fall below present level as increase in raw material prices by upto INR 300-600/MT in a week’s time may support billet offers. Iron ore prices rose by upto INR 150/MT, imported scrap by USD 15-20/MT, Pig iron up by INR 300-900/MT, and Silico manganese by INR 6,000-8,000/MT.
MS billet prices as on 15 Mar’16
| Particular | Prices | D-o-D | W-o-W |
| Ex-Mandi Gobindgarh | 25,800 | -350 | -100 |
| Ex-Durgapur | 22,150 | -100 | +300 |
| Ex-Jharsugda | 21,700 | -200 | +400 |
| Ex-Rourkela | 21,700 | -200 | +400 |
| Ex-Raipur | 22,800 | -250 | +200 |
| Ex-Ahmedabad | 25,400 | -500 | +700 |
| Ex-Mumbai | 24,500 | -100 | +100 |
| Ex-Chennai | 26,200 | 0 | +850 |
| Ex-Hyderabad | 25,500 | -100 | +500 |
Prices in INR/MT
Source: SteelMint Research
Trade dynamics
1. A Durgapur (West Bengal) based manufacturer reported to conclude few deals for billet to Nepal and Bangladesh at around INR 22,600-22,800/MT (USD 335-340/MT) ex-plant.
2. Shyam Metalics located in Odisha kept its billet offers unchanged at INR 22,000/MT ex-plant.
3. Raipur based billet manufacturers are offering material at INR 22,600-22,800/MT.
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