In a recent trade, it has been noticed that few large manufacturers in Gujarat are actively selling billet to north India on account of better realization and coming festive mood. However, it is expected that this will affect trade activities for minimum a week.
Mandi Gobindgarh (Punjab), which makes its overall purchasing of semis products (sponge and billet) from central, east and west India, is now receiving cheaper offers for billet by Gujarat based manufacturers on ready delivery basis.
As per traders in Mandi Gobindgarh, billet offers by Gujarat based large manufacturers are at approx INR 21,800/MT, FoR (including CST & freight, excluding ED @ 12.5%).
A large manufacturer from Gujarat, who’s billet & bloom production capacity is 0.24 MnT pa, reported that about 3,000 MT billet have been sold to Mandi Gobindgarh at INR 22,000-22,200/MT, FoR (including CST & freight, excluding ED @ 12.5%) since last couple of days.
Sources also confirmed that few large manufacturers, including Mono Steel, Electro Steel, Versana Ispat, Shah Alloys and Neelkanth Industries are also aggreessively offering billet to north market.
It seems that sluggish finished steel demand, which is continuously piling up stock in the major markets, is pressurizing large manufacturers to offers semis material in the open market.
In Mandi Gobindgarh, out of the total requirment of billet, approx 60% of material is being source from outside states like, Chhattisgarh, West Bengal, Odisha and Gujarat.
Frieght charges via road to Mandi Gobingarh from Gujarat is INR 2,000/MT, West Bengal is INR 2,500-2,600/MT, Chhattisgarh is INR 2,500/MT and Odisha is INR 3,000/MT.
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