Billet offers in domestic market reported a fall of INR 100-500/MT against yesterday’s trade. Prices are majorly corrected in Gujarat by INR 500/MT. Limited trades have resulted a slight price corrections in Indian billet market.
On 13th Sep’16, offers for size 125*125 mm billet have reached at INR 21,700-24,100/MT against yesterday’s closure at INR 21,800-24,600/MT.
Odisha based Patnaik Steel reported that demand is weak at current offer price level i.e. INR 21,500/MT (ex-plant). An official also confirmed that billet is mostly being supply to North India (Mandi Gobindgarh).
Similar comments being received by Raipur based manufacturers where billet is available in the range of INR 22,200-22,400/MT. According to the manufacturers, present supply to outside based states is almost nil. It seems that if demands remains poor, billet prices may record an another fall in the region.
After long holidays in West Bengal (Durgapur), market opens today with price change of INR 200-300/MT. Billet offers in Durgapur is assessed at INR 22,400/MT where as buying is seen at INR 22,200-22,300/MT. According to the some reputed manufacturers, sponge iron manufacturers is facing some selling pressure as the production of sponge iron is fully fledged as compared to limited production of Ingot/billet.
Trade sources in Gujarat & Maharashtra mentioned, billet prices may come under pressure as raw materials supply (Scrap & Sponge iron) improved in the markets. In addition, sluggish demand for finished steel is also a major concern for billet manufacturers.
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