Indian billet makers continue to reel under selling pressure amid poor buying interest by Indian rolling mills due to heavy rainfall. Today, the manufacturers have further reduced their offers by upto INR 300/MT.
As per trade sources, major selling pressure is in east and west regions as both are the large billet suppliers to north-east based rolling mills. Amid heavy rainfall in the regions, supply of semis material are totally disturbed, which is mounting selling pressure on the manufacturers.
Market participants are assuming that billet prices will remain under pressure. There is also hope in the market that Raipur based furnaces will resume their operations soon, which will increase the supply of ingot/billet in the domestic market. Raipur majorly supplies billet to north (UP & Punjab) and west India (Maharashtra & MP).
Trade highlights
1. Billet offers in Durgapur fell to INR 19,200-19,300/MT. While, offers for north-east market are assessed at INR 19,100/MT.
2. Rourkela based few large manufactures, whose daily billet production is approx 400-600 MT, are exporting billet to Nepal. As per agents, around 3-4 rakes have been booked in the current month at a price of INR 19,000-19,200/MT (ex-plant). Billet export from Odisha to Bangladesh remained nil.
3. Durgapur & Kutch material available in Mandi Gobindgarh is being offered at INR 22,500/MT, FoR ready to delivered (size 100*100 & 125*125 mm).
4. In Hyderabad, billet offers are firm at INR 21,000/MT. Trades are subdued at this offers. Prices are anticipated to remain firm in near term.
5. As per trade sources, Vizag Steel (VSP) sold about 500 MT billet of 160*160 mm to a Chennai based rebar manufacturer (Trimula TMT) at INR 23,500/MT, delivered to plant (including all). Sources also mentioned that VSP is providing discount of upto INR 400/MT on purchase of bulk quantity.
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