– Indian domestic billet prices fall to pre MIP levels due to bearish trade activities.
– Limited impact of MIP on long steel and semi finished products.
– Prices are likely to remain subdued owing to monsoon.
In current scenario, Indian billet prices have fallen to pre MIP (Minimum Import Price) levels. On 4th Feb’16, the Indian government had imposed MIP on 173 steel products, including billet for 6-month i.e till Aug’16 in a bid to control rising imports.
Billet in Raipur is currently trading at INR 20,500/MT, which were last recorded on 1 Feb’16 before MIP was imposed. The similar price movements are noticed in Durgapur, Mumbai and Rourkela, where current prices have dropped to pre MIP levels.
Limited impact of MIP on billet
MIP has limited impact on billet,as low amount of material has been imported to the country. Market participants believe that MIP has greater impact on flat steel as major portion of imports have been made for flat steel. Since the imposition of MIP, flat steel manufacturers have managed to raise their offers by upto INR 4,000/MT
Steel demand to remain weak during monsoon
Steel (rebar, structures and wire rod) demand from construction area will remain weak due to upcoming monsoon season in India. Market participants want MIP to be extended for more time till real demand pick up in India.
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