Indian billet market today has opened with a price rise of INR 100-300/MT in east & north India. While, offers in west & south regions remain unchanged today. Sponge offers remain strong despite production cut by ingot/billet manufacturers.
As per industry sources, semis offers are likely to be supportive due to positive rumor of MIP extension in the market and production cut by ingot/billet makers. Also, strong sponge offers is an another factor that indicates no further price corrections.
Highlights
1. Semis offers in Durgapur & Rourkela have gained due to resumption of ingot export to Bangladesh. As per sources, few deals concluded on Saturday at INR 19,400/MT ex-Durgapur.
2. Today in Raipur, there is no merchant billet sellers as most of the producers halted their production and gone for indefinite strike to reduce power tariff.
3. In Mumbai & Jalna, few billet manufacturers (about 2-3 units) have shifted their production in night hours only. As per sources, billet prices in the region may increase soon due to limited sellers.
4. Following the sharp price rise in central & east India, offers in south region may improve soon, as per SteelMint assumption.
5. Suppliers reported logistic vehicle issues from east (Rourkela & Durgapur) to north-east (Mandi-Gobindgarh, Bhiwadi, Uttarakhand & Assam), which has increased freight charges.
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