Billet prices increase by INR 200-500/MT (USD 3-8) in Central & East India, D-o-D. Price surge is in line with increase in purchase inquiries amid less supply for the material.
Mid of Nov’16 production cut by standalone plants have matched demand supply chain. As a result prices got support which was on downward mode.
Current offers for 100*100 mm billet are – INR 22,000-22,500/MT (USD 322-330) in Central region & INR 21,800-22,600/MT (USD 320-332) in East India. Offers for global buyers are assessed at USD 380-385/MT FOB India (East Coast).
Sources in Durgapur reported, demand improved from the North-East regions as well from the global market. The manufacturers are largely selling Ingot/billet to Punjab, Assam and in the global market that is to Nepal & Bangladesh. During current week exports offer for Ingot are at INR 22,700-22,800/MT while for domestic buyers it prevailing at INR 22,300-400/MT ex-plant, Duragpur.
Patnaik Steels in Kendujhar, Odisha reported that deals are happening for north India. The company’s offer for billet was at INR 21,700/MT on 05 Dec’16 and today it increased to INR 22,000/MT ex-plant.
In Raipur, the manufacturers are currently not receiving any call from out of state based buyers i.e. South & West regions as supply isn’t feasible. Moreover, trades in local market are better, according to the manufacturers. They added that, currently inventory levels are less and there is none selling pressure in billets.
However, looking at price movement in other parts of India, it is firm today in Western India. While in South, Hyderabad & Bangalore is down by INR 100-500/MT D-o-D.
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