Indian domestic billets price rose upto INR 800/MT (US$ 12) in Oct’16, M-o-M. Similarly, Global billet offers also moved up by US$ 20-30/MT.
Viewing the prices scenario in Sep’16 that is INR 1,500-1,800/MT M-o-M, which were two fold than the price gained in Oct’16.
Major Price rise during Oct’16 were reported in Durgapur by INR 700-800/MT followed by Raipur, Rourkela & Ahmedabad by INR 300-400/MT.
On an average the merchant Ingot/ billet manufacturers were running their units for 12-18 hrs a day, so in context to demand & supply, the manufacturers were cautious due to low margins (conversion spread). In Oct’16 conversion spread from P-DRI to billet in Raipur was at INR 8,150/MT declined by INR 150/MT as in Sep’16 it was at INR 8,300/MT.
Billet monthly average prices since Apr’16
| Month | Durgapur | M-o-M | Raipur | M-o-M | Mumbai | M-o-M | Chennai | M-o-M |
| Apr’16 | 22,650 | 350 | 22,550 | -100 | 24,450 | – | 25,700 | 150 |
| May’16 | 21,750 | -900 | 21,550 | -1,000 | 23,250 | -1,200 | 24,150 | -1,550 |
| Jun’16 | 20,600 | -1,150 | 21,000 | -550 | 22,650 | -600 | 22,200 | -1,950 |
| Jul’16 | 19,750 | -850 | 19,900 | -1,100 | 21,450 | -1,200 | 22,050 | -150 |
| Aug’16 | 19,650 | -100 | 19,700 | -200 | 21,450 | – | 21,450 | -600 |
| Sep’16 | 21,150 | + 1,500 | 21,400 | + 1,700 | 23,100 | + 1,650 | 23,350 | + 1,900 |
| Oct’16 | 21,850 | + 700 | 21,700 | + 300 | 23,150 | 50 | 23,100 | – 250 |
Basic prices in INR/MT
Sources: SteelMint Research
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