Billet offers in domestic market continue to move upward. Today, the manufacturers have further raised their offers by INR 100-200/MT against the last day trade. Moreover, offers in the current week have upsurged by INR 800-1,200/MT.
Rising sponge prices and improved long steel demand are supporting billet offers in Indian market. Another major plus point is rumor of price hike by primary steel producers for all steel products for Sept’16 deliveries. According to SteelMint sources, the primary manufacturers are yet to declare their fresh offers for the current month.
Domestic market scenario
Raipur: Selling pressure on merchant billet manufacturers have decreased in Raipur as the integrated plants, which were actively selling billet in the open market, are now selling material in limited quantity due to better finish steel demand.
Durgapur: Billet manufacturers reported that a sharp hike in sponge prices has supported billet offers in the city. Billet demand from local buyers and outside states is average from couple of days.
Mumbai: Agents in the market, who deals semis in bulk, mentioned that prices have increased significantly now. There are less chances of further price hike as coming Ganpati festival may halt trade activities for more than a week.
Rourkela: In the last 2-3 days, sponge prices here rose by INR 400/MT. While, billet prices rose only by INR 100-200/MT. Billet demand from outside states i.e north-east regions is not much good. Manufacturers mentioned that billet price fluctuations is dependent on sponge pricing.
Chennai: Shakti Ferro, a price decider in the market, is offering billet at INR 24,500/MT (including VAT and excluding ED). While, another manufacturers are offering at INR 25,000-25,500/MT with the same taxation.
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