In Dec’16, billet prices have gain momentum by INR 1,000-2,000/MT (USD 15-30) M-o-M, hike by 6-8%. Major price rise were recorded in Central, East, West & Northern India, while a slight price uptick have seen in South region by INR 700-800/MT.
Less supply due to production cut and improved demand led to increase in Indian billet prices. During the month, the manufacturers were facing heavy liquidity crunch due to demonetization of Indian currency. As result they opted to reduce productions to maintain their payment exchange as well as demand & supply.
In Dec’16, the manufacturers were relaxed over rise in conversion spread (margins) which was increased by INR 1,000/MT to INR 10,000/MT approximately from P-DRI to billet in Raipur & Durgapur. In Nov’16, it was in in the range of INR 8,000-9,000/MT in the both markets. Also the prices of billet were recorded 15 month high in the last week of Dec’16.
Monthly average billet prices since Jan’16
| Month | Durgapur | M-o-M | Raipur | M-o-M | Rourkela | M-o-M | Mumbai | M-o-M |
| Jan’16 | 21,100 | + 600 | 21,250 | + 300 | 20,550 | + 700 | 22,900 | + 150 |
| Feb’16 | 21,500 | + 400 | 21,950 | + 700 | 20,750 | + 200 | 23,850 | + 950 |
| Mar’16 | 22,300 | + 800 | 22,650 | + 700 | 21,500 | + 750 | 24,450 | + 600 |
| Apr’16 | 22,650 | + 350 | 22,550 | – 100 | 21,750 | + 250 | 24,450 | 0 |
| May’16 | 21,750 | – 900 | 21,550 | – 1,000 | 20,850 | – 900 | 23,250 | – 1,200 |
| Jun’16 | 20,600 | – 1,150 | 21,000 | – 550 | 20,100 | – 750 | 22,650 | – 600 |
| Jul’16 | 19,750 | – 850 | 19,900 | – 1,100 | 19,100 | – 1,000 | 21,450 | – 1,200 |
| Aug’16 | 19,650 | – 100 | 19,700 | – 200 | 18,950 | – 150 | 21,450 | 0 |
| Sep’16 | 21,150 | + 1,500 | 21,400 | + 1,700 | 20,750 | + 1,800 | 23,100 | + 1,650 |
| Oct’16 | 21,850 | + 700 | 21,700 | + 300 | 21,150 | + 400 | 23,150 | + 50 |
| Nov’16 | 21,600 | – 250 | 21,850 | + 150 | 21,050 | – 100 | 23,850 | + 700 |
| Dec’16 | 23,100 | + 1,500 | 23,100 | + 1,250 | 22,350 | + 1,300 | 25,150 | + 1,300 |
Basic, ex-works prices
Source: SteelMint Research
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