Today, Indian billet market has opened with firm offers compared to previous day trades. Meanwhile, offers in south India have remained stable. However, sponge prices have gained by INR 50-250/MT due to supply crunch of the material.
Rising sponge offers have worried Indian induction furnace operators as it is affecting their margins.
MS billet prices as on 11 Jul’16
| Particular | Prices | D-o-D | W-o-W | Remarks |
| Ex-Raipur | INR 20,300 | 0 | -100 | Increasing sponge offers supported billet market. As per brokers, offers may fall anytime soon, looking at dull rebar sales and selling pressure on the manufacturers. |
| Ex-Durgapur | INR 20,350 | +50 | +550 | Supply of material continues to Punjab, Guwahati and Himachal, including global market. In the last week, few deals concluded to Bangladesh at INR 20,200-20,300/MT (ex-plant), reported suppliers. |
| Ex-Rourkela | INR 19,400 | 0 | 0 | Bhaskar Steel has increased offers by INR 100/MT to INR 19,400/MT. The plant has reported sponge shortage, which may support billet offers in the market. |
| Ex-Gobindgarh | INR 23,500 | 0 | -50 | As per traders, manufacturers in Odisha and West Bengal are worried over piling stock in the units. Thus, they are offering discount on bulk purchase. |
| Ex-Mumbai | INR 21,500 | 0 | -300 | Strong scrap & sponge offers maintained billet offers firm. |
| Ex-Chennai | INR 21,750 | 0 | +50 | Despite sluggish demand offers almost firm as manufacturers not willing to sale material at lower prices |
| Ex-Hyderabad | INR 22,000 | 0 | 0 | Demand bearish; offers may fall anytime as mill operators are not taking interest at current offers. |
| Ex-Ahmedabad | INR 22,950 | +50 | +350 | Billet market supportive due to better structure demand and increasing ship breaking prices. |
Prices in INR/MT
Source: SteelMint Research
Leave a Reply