Domestic billet markers today reported a good recovery in their offers; leading to a slight improvement in trade activities. West India has registered the major price hike of INR 550/MT, followed by north and west regions.
It is heard from sources that amid persistent decline in billet prices, there were limited number of sellers in the market as they were not fetching a proper conversion cost. This in turn has somehow supported recovery in prices.
However, south India based billet makers have maintained their offers at the same level of INR 22,250-24,000/MT, alike yesterday.
Presently, 125 x 125 mm MS billet prices are accessible in the range of INR 20,500-24,800/MT across prime markets.
MS billet prices as on 18 May’16 with comparison
| Particular | Prices | D-o-D | W-o-W | M-o-M | Q-o-Q |
| Ex-Mandi Gobindgarh | 24,800 | +300 | -700 | -350 | -800 |
| Ex-Durgapur | 21,450 | +300 | -900 | -950 | +50 |
| Ex-Rourkela | 20,500 | +200 | -800 | -950 | -200 |
| Ex-Raipur | 21,300 | +250 | -700 | -700 | -800 |
| Ex-Ahmedabad | 22,650 | +550 | -650 | -1,850 | -1,050 |
| Ex-Goa | 21,800 | 0 | -500 | -1,750 | -400 |
| Ex-Jalna | 22,800 | 0 | -800 | -1,200 | -1,200 |
| Ex-Mumbai | 23,000 | +100 | -200 | -1,200 | -1,000 |
| Ex-Chennai | 24,000 | 0 | -450 | -1,350 | 0 |
| Ex-Hyderabad | 22,250 | 0 | -750 | -2,250 | -1,250 |
Prices in INR/MT
Source: SteelMint Research
Current trade dynamics
1. Traders reported that Mandi Gobindgarh manufacturers are buying billet from Durgapur with freight charges of INR 2,100/MT.
2. Mumbai based ingot/billet makers are purchasing 80 FeM C-DRI from Bellary at INR 11,700-11,800/MT, with freight charges of INR 1,700/MT.
3. Raipur based billet makers are facing selling pressure and offering material on FoR basis instead of ex-plant to attract buyers. Few manufacturers were heard to sold billet yesterday at around INR 21,100-21,200/MT, FoR.
4. Billet in Gobindgarh’s local market is trading at INR 24,600/MT on regular payment basis, traders reported.
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