Indian billet prices during the 1st half of current month fell by upto INR 1,000/MT and conversion spread also narrowed down by INR 500-1,500/MT.
Indian billet makers have been tussling with immense pressure since last 15 days. Amid seasonal weak trades, billet prices in major producing markets like Raipur, Durgapur, Rourkela, Mumbai and Hyderabad have fallen by INR 300-1,000/MT. Whereas in the same period, sponge prices in all these markets are almost unchanged. This in turn has directly affected Indian billet makers’ conversion cost.
Lowest & highest prices during 1-15 Jul’16
| Markets | Lowest | Highest | Today’s Offers |
| Raipur | 19,550 | 20,500 | 19,650 |
| Durgapur | 19,650 | 20,300 | 19,750 |
| Rourkela | 19,000 | 19,500 | 19,000 |
| Ahmedabad | 22,000 | 22,000 | 22,000 |
| Mumbai | 21,200 | 22,000 | 21,350 |
| Hyderbad | 21,500 | 22,000 | 21,500 |
| Mandi Gobindgarh | 22,850 | 23,600 | 22,900 |
Prices in INR/MT; ex-works
Source: SteelMint Research
In the starting of current month, conversion spread from C-DRI (78-80 FeM) to billet in Raipur and Durgapur was around INR 9,000/MT. However till 15 Jul’16, it decreased to INR 7,500/MT in Raipur and INR 8,500/MT in Durgapur (down by INR 500-1,500/MT). Producing billet at present conversion spread is not sufficient, as per the manufacturers.
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