Semi finish manufacturers in central, east and west India are in panic condition amid increase in their input cost by 10-20%. However, MS billet/sponge prices couldn’t attain sustainability.
MS billet prices are on a roller coaster during last three days as prices went up by INR 200-300/MT yesterday and today plunged down by INR 300-500/MT.
Highlights on weekly comparison
1. Billet offers in a week fell by upto INR 800/MT.
2. Sponge offers are almost stable due to hike in iron ore prices.
3. Domestic Pig iron and scrap offers have gained by INR 300-1,000/MT.
4. Imported scrap offers raised by USD 10-20/MT ( upto INR 700-1,500/MT).
5. Chinese billet export offers raised by USD 10/MT (INR 700/MT).
“Pig iron (steel grade) prices have hit an all time high in last 1 year to INR 20,400/MT in its most consuming state. Similarly, electricity cost up by 20% but our finish product costs couldn’t stand”, shared Raipur based billet manufacturer.
“Sponge producers in central India are undercutting P-DRI and C-DRI prices by upto INR 300-400/MT due to low sales and increase pressure from neighbor sales. Our iron ore cost has increased by upto 10-12% but sponge prices dipped by INR 200-400/MT (3-4%)”, shared a merchant sponge seller in Raipur.
Sponge and billet prices as on 8 Mar’16
| Particular | Billet | W-o-W | Sponge | W-o-W | Conversion spread | 1 week earlier conversion spread |
| Ex-Durgapur | 22,400 | -500 | 12,000 | -400 | 10,400 | 10,500 |
| Ex-Rourkela | 21,450 | -750 | 11,100 | -300 | 10,350 | 10,800 |
| Ex-Raigarh | 22,100 | -800 | 11,850 | NA | 10,250 | NA |
| Ex-Raipur | 22,500 | -950 | 13,050 | -150 | 9,450 | 10,250 |
| Ex-Hyderabad | 25,500 | -500 | 13,700 | -300 | 11,800 | 12,000 |
Prices in INR/MT
Source: SteelMint Research
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